In “Mo money, mo money” news, the big homies at the banks and credit unions are back at it again, this time they made an eye-popping $24 billion in overdraft fees in 2008.
Oh for real EbenGregory…that means that they made a 35 percent increase from 2006 figures huh man?
Yes.
And now…here’s the HuffingtonPost.com explaining how the banks and credit unions making mo money: The report estimates that about 51 million people were affected – meaning that one in six Americans were hit, on average, with $470 in overdraft fees last year. The fees, which banks levy when approving check, debit card and ATM transactions despite a customer’s lack of sufficient funds, have become a source of big business for financial institutions: nearly half of all banks and credit unions make more money from overdraft services than they make in profits, according to Moebs Services, an economic research firm. The firm estimates banks will make $27 billion off overdraft programs this year, and says this is the first time banks have raised their overdraft fees during a recession.
And now…here’s more HuffingtonPost.com explaining how the banks and credit unions making mo money of the back of their customers: While billed as a convenience for customers who otherwise would see their purchases denied, the practice amounts to little more than a trap for consumers who don’t know the precise dollar amount in their checking accounts, consumer advocates say. Banks typically enroll consumers in these programs automatically. In addition, when it comes to tallying the fees, some banks post debits from the highest amount to the lowest, rather than chronologically, so a $4 purchase at 10 a.m. at Starbucks is posted to the account after a $68 dinner bill that created a negative balance, making each subject to a fee.
I see I said. And now…
We laughing all the way to the bank ice jewelry: It is easier to rob by setting up a bank than by holding up a bank clerk.
I’m just saying.
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October 6th, 2009 at 1:24 pm
so what you saying Eben is that the banks are cashing checks and saying, “TRILLA”????
October 6th, 2009 at 3:41 pm
EG – this has been going on for years. I’m surprised the Post is just now kin to this. The way it used to be done is: post all the withdrawals before you post any deposits. That’s why banks would even stoop so low as to say it’d take 24 hours for your CASH DEPOSIT to post.