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Ridiculous Bank Fees!

Ridiculous Bank Fees!

First of all let me explain something...

Due to my location in the Caribbean and the lack of good electronic banking I am forced to use my US bank account (a measly account used to transfer money over the net as local banks do not have this facility), because in this day and age everyone wants to pay through PayPal, Visa, or what have you.

Recently, a client did not pay me what they owed and so it left me in 'hot water'. I had signed a cheque previously to cover expenses with the idea of being paid by said client, but was not, so I decided to have a Community Donation Drive in order to get the funds into my US Bank Account (it is much faster this way as I would have to wait three to four weeks if I sent it here by mail) in order to cover the cheque I signed.

Well, thankfully because of supportive people here donations began coming in and as fast as they were I began transferring it from PayPal to my US bank account (this takes four days). I was hopeful everything would go well and meet my target, but I was left with dismay this morning.

My US bank account received the cheque this morning and deducted it from my account (which did not yet have all the funds because some were still in the four day layover from PayPal) and so what happens.... my US bank covers the cheque (nice) and then turns around and hands me a big fat US$33.00 over draft fee because I was US$2 and some cents short! Can you believe that?

So now not only am I still short in the Donation Target, but I am US$33 in the hole! What is even more sad is that hosting is due in four days and so if I do not get the needed Donations today to cover that then my butt is burned!

Oh well... this rant is over... all about ridiculous bank fees! The morale here to be learnt: Do not sign a cheque until you are actually paid what is owed to you!

Fees Bank Ridiculous

I understand this dilemma very well and have learned from experience the hard way also. One time, when finances were very short with us, we wrote a couple of checks anticipating my paycheck would be there to cover it. Well, there was some problem with the payroll office and the paycheck came a day late. I ended up with 5 overdraft fees at $30 US each, so now I was $150 behind from the beginning. The other fees that I don't like from some banks is when they charge me to use an ATM that is not theirs. ATM's were meant to be a convenience to the user, not the bank, so why charge me because I am in the middle of nowhere, and the only ATM available is in a gas station, and is not affiliated with my bank?

Ridiculous Bank Fees! History & Civil Business Politics

I know that no one will want to hear this, but at least in Texas it is a crime to write a check without already having the funds in your bank account. The drafter is not allowed the luxury of assuming funds in the future will be there to cover the check.

Now, I know, not like this is all that uncommon. But it's one reason why the banks feel entitled to charge these fees. It does cost them money to go back and undo the transactions and then go after you to figure it all out.

My current bank (Chase) attempts to redraw the check if there are not sufficient funds (both ways, whether not enough in my account or in the account of the person I received a check from). That's great for me. But it can cause problems on the other end. I've heard that each time Chase tries to deposit the check, the poor soul who wrote the check will get an overdraft fee by HIS bank.

Fees Bank Ridiculous

It is the law here too, but NOT on that account I am using in the US. They pay it for you or not and then hit you the fee. However, the point of the Thread is that the fee is ridiculously high and feel it more because I have to think 6:1. Even our local banks do not charge quarter of that.

Fees Bank Ridiculous

Well, the lesson could be that if you are going to bounce a check, make sure it's a big one. Just think, had you written a check for US$6,000,000, this fee would have only been 0.00055% of the entire transaction!

Suppose it's all how you look at it.

Edited: tortdog on 5th Sep, 2007 - 1:39pm

Ridiculous Bank Fees!

I usually do not deal with any hypothesis in personal business transactions. I would never purposely bounce a check especially when the bank is only paying a couple of dollars for something a day late or hours late and then hits me with $30 or $35. It is all a matter of view with service - my local bank would never do me that - so yes it is how you look at it - crappy bank policies that encourage you to leave and others which encourage you to stay.

Ridiculous Bank Fees!

And that statement, I believe, hits the nail on the head. Thankfully there are alternatives.

Ridiculous Bank Fees! Politics Business Civil & History

Banks get rich on overdraft fees; customers complain

It's called "courtesy overdraft" and has long been used by banks to automatically pay transactions that account holders don't have the money to cover - and then charge them a steep fee. For years, banks have made it easier for customers to overdraw their checking accounts, aided by a cottage industry of consultants who make big money by helping to wring fees out of consumers, a USA TODAY analysis finds. Ref. Source 5