How To Get Back Overdraft Fees From Your Bank

[FiveDime]

http://www.youtube.com/watch?v=YjH4Us0n0QY

[FiveDime]

The reason why they have fees, and the reason why they are high, is because its a fine, a punishment for going over drawn.

That was my thinking prior to this video and the response below

No, it most certainly is not. The bank has no interest (and no real authority) to punish you for being a bad boy so that you'll be a good boy next time. When they decide not to let you open an account, that's a punishment.

Overdraft fees are about money, plain and simple. It's an opportunistic way for them to make money off of you and your checking account (which otherwise would cost them labor/resources without any benefit.)

they might decide to get rid of free banking.

And then I might decide to take my money (and savings) to another bank or credit union.

Also the Fees are in the contracts of you opening an account with them.

The question isn't about whether or not there's a contract and agreement. The question is whether anyone should be allowed to make a loan that charges $35 for a $1 loan over a period of perhaps two days.

Understand that that's what an overdraft is. If I have 3 dollars in my account and my bank chooses to pay someone asking for 5 from my account, they are loaning me 2 dollars (without telling me) and charging ridiculous amounts of interest.

You can say it's my fault that I wrote a check for 5 dollars, and it is, but let's look at this on a small scale:

I give you 3 dollars of my money to hold onto for me. Some guy comes to me saying "hobbit, you owe me 5 dollars!" I say "oh, you know what, go get it from lloydsparkes. I think I left about 5 dollars with him to hold onto." The guy gets to your house, and has a note from me saying to give him my 5 dollars that you are holding.

Here are some choices:

a) Give him the 3 that I actually gave you and tell him "you'll have to figure something out on the other 2 with hobbit, because I've only got 3 dollars of his money."

b) Decide that since I don't actually have that much that maybe I should settle up with my debtor some other way and tell him "sorry, go back to Hobbit for the whole 5. i don't have 5 dollars of his money..."

c) Give him the 5 dollars (2 of your own) and ask me to pay you back the 2 dollars with a reasonable amount of interest, if it takes too long, etc.

d) Call and ask me what to do.

e) Give the guy 5 dollars (2 of your own) and then tell me that I owe you 37 dollars because someone came to you asking for more money than what I gave you.

Do you see how "e" makes you kind of a dick?

When a short term loans company or "payday advance" place gives you a loan on those terms it's illegal. When a bank does it, it's okay.