• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

Beware of Bankers Bearing Gifts (and Opt-In Notices)

As if it weren’t difficult enough to avoid being tricked by your credit card company into fees, higher interest rates and variable rates that only ever go up, Andrew Martin and Ron Lieber of The New York Times report on the aggressive campaign by your bank to get you to agree to accept fees even the Fed thinks are outrageous. The best part: They want you to think they’re doing you a favor by charging you!

Before the Fed stepped in — and only because Congress was talking about legislating the practice out of existence — banks were treating debit card transactions differently from checks when an account was overdrawn. Instead of declining the transaction if the account was empty, which is what most people expected would happen, the bank would approve the debit and then charge customers about $35 for each overdraft debit transaction. Sketchier yet, they would often order transactions largest to smallest at the end of a business day to enable them to charge multiple overdrafts: If a customer had $20 in an account and, over the course of the day, used a debit card for $10, $10 and then $25 (expecting only the last charge to be an overdraft), the bank would reorder the transactions to $25, $10 and $10 and then charge the customer $105 in overdraft fees.

Banks made $20 billion off those practices last year alone — covering checks or automatic payments that would otherwise normally bounce, even when a customer doesn’t have overdraft protection, only netted then $12 billion. So the banks are now spending a great deal of time trying to convince their customers to opt into the per-transaction fees.

As Martin and Lieber note (and this author personally experienced), one Chase opt-in notification is designed to scare customers into believing that even their normal overdraft protections will be ended, and that their ATM and debit cards will no longer work properly if they don’t “opt in” to the new overdraft protection.

But in recent weeks, Chase has been fanning special letters out to consumers with an offer that it urges them not to refuse.“Your debit card may not work the same way anymore, even if you just made a deposit. Unless we hear from you,” the message, emblazoned in large red type, warns. “If you don’t contact us, your everyday debit card transactions that overdraw your account will not be authorized after August 15, 2010 — even in an emergency,” with “even in an emergency” underlined for emphasis.

Martin and Lieber describe other hard-sell tactics, like consumers being told that holds on their cards will leave them without any access to money. The banks don’t plan on stopping at one mailing: Consumers who fail to opt into the banks’ new version of overdraft protection — a per-transaction fee of around $35, not that banks will ever call it that — can expect more hyperbolic mailings, personal phone calls and emails. After all, there is $20 billion in customers’ hard-earned money at stake for the banks.

Discussion & Comments (0)

    Recent Articles

    • Things You Should Know about North America

      Things You Should Know about North America

      Get to know more about North America.

    • Eurovision 2010 Paula Seling Unpredictable Contest

      Eurovision 2010 Paula Seling Unpredictable Contest

      Paula Seling's experience on the Eurovision stage led her to declare that "Eurovision is an unpredictable contest". Which may explain the success of the young Lena from Germany, about whom the predictions before the event did not offer much chances for victory.

    • VIPRow.me - The Best Sports Streaming Website Today

      VIPRow.me - The Best Sports Streaming Website Today

      Have you ever contemplated creating a user-friendly site dedicated to sports-related free live streaming channels?

    • Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      XNXUBD 2022 Nvidia users are able to watch thousands of videos and other contents online. XNXUBD 2022 Nvidia New is a piece of software that enables people to watch videos online without having to pay for memberships. On a graphics card, the XNXubd also provides some of the best gaming and virtual reality experiences.

    • Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      A new edition of the Video Editor Apk for xVideostudio.Video Studio has all the latest features, including support for multiple video download formats in HD, FHD, and even 4K resolutions.

    • 9 Best Lotion For Masturbation - Popular Choice For 2022

      9 Best Lotion For Masturbation - Popular Choice For 2022

      Masturbation is a common activity for men and women. It's a natural and risk-free way to explore your body, experience pleasure, and release sexual tension.

    • Reasons Why You Need To Stop Watching Movies From Sflix

      Reasons Why You Need To Stop Watching Movies From Sflix

      Without having to sign up or pay anything, you can watch movies online for free with SFlix. It has more than 10,000 movies and television shows.

    • Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Collins (born May 11, 1997) is a rapper from the United States. Leray started publishing songs to SoundCloud in 2014, and in 2018 she released her breakthrough track "Huddy" as well as her first mixtape, Everythingcoz.

    • Listen And Download Music On MyFreeMP3 For Free

      Listen And Download Music On MyFreeMP3 For Free

      Are you in a bind and looking for a place to obtain free mp3 songs? Never again will you need to bother, since this article has everything necessary to obtain your solution. Download free music from MyfreeMP3.com, one of the world's most popular websites.