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Overdraft versus "unavailable funds"

Discussion in 'The OT' started by AntAltMike, Jan 4, 2011.

  1. cj9788

    cj9788 Hall Of Fame

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    IMO you should.
     
  2. kc1ih

    kc1ih Legend

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    The only contract I ever signed with my bank was 22 years and 7 mergers ago. At the time I opened the account it was a bank with seven branches, now it’s part of BOA. I would think they would have a hard time enforcing the terms of that contract, if they could even find it.
     
  3. Hoosier205

    Hoosier205 Active Member

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    Overdraft/NSF fees really should not matter. It shouldn't be an issue. Here is a tip...spend only what you have. If you spend more than you have, that's your fault. I'm all for the bank charging fees processing those transactions. It's a "stupid" tax.
     
  4. cj9788

    cj9788 Hall Of Fame

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    When banks merge or are taken over they will mail you thier terms of service. 10 pages of legal speak that most people never read.
     
  5. P Smith

    P Smith Mr. FixAnything

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    Tell that to your older relatives. :down: Then I will see who you are. :eek2:
     
  6. Hoosier205

    Hoosier205 Active Member

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    What in the world are you talking about?
     
  7. P Smith

    P Smith Mr. FixAnything

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    Granma, grandpa ...
     
  8. Hoosier205

    Hoosier205 Active Member

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    They're dead, but while alive...understood how not to bounce a check. Again, what is your point?
     
  9. P Smith

    P Smith Mr. FixAnything

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    duh ! not all ppl making such mistakes are stupid
     
  10. Hoosier205

    Hoosier205 Active Member

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    That's your opinion.
     
  11. fluffybear

    fluffybear Hall Of Fame DBSTalk Club

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    Peachtree...
    When I was working for Xerox, they had a policy for dealing with employees writing bad checks (which were brought to their attention). The first time, you would be called in to your managers office and lectured. If it happened again, you were shown the door.
     
  12. Hoosier205

    Hoosier205 Active Member

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    Sounds like a great policy. There is no excuse for it, unless there is an emergency.
     
  13. Mark Holtz

    Mark Holtz Day Sleeper DBSTalk Club

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    I write very few checks these days and rely on checking my balances online instead of a check register. I also use a good credit union.

    People still think that they can "float" a check. Bad idea. In some cases, the check is processed immediately, voided, and given right back to you. To me, the check is a relic of the past, much like the VCR. But, like Latin, they'll live forever.
     
  14. P Smith

    P Smith Mr. FixAnything

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    Then again, tell that to our grand parents ( if you are arrogant enough ).
     
  15. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    The cost of processing a bad check is non-zero. While the bank won't cover your check for you (unless you have overdraft protection) they have to pay their staff and processing companies to deal with your error.

    I'm not saying it costs your bank $35 to process a bounce ... but it costs them more than $0.

    Be assured that if "Bob" is any major retail company he WILL charge you extra for bouncing a check. They barely want to see your check when you presented it (so much processing involved). They certainly don't want to see it again.

    Their first step will probably be to resubmit the check to your bank (through theirs) doubling the "bounce" fee. The only thing that would prevent that would be if your bank marked the first bounce as "do not present again". Then when they track you down you could pay another $25 fee (or more) to redeem your bad check. Want to make a $100 mistake? Bounce a check.

    The policies and fees are disclosed by the bank in advance ... those wonderful disclosures they like to update and mail you. I've seen bounce fees posted at registers as well. The only way to win is to keep enough in your account to cover any errors ... or not to play with checks.
     
  16. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    The non-zero cost of bouncing a check is a non-starter.

    I went to my bank recently... brought them $40 in cash and asked for four rolls of quarters.

    I made no deposit or withdrawal... the bank made no money on the transaction... but they still had to pay the clerk to process that transaction.

    Why was there not a service charge for that transaction?

    On the check-end of things... whenever I go to deposit a check, the funds are not immediately available... which means I don't get the money until they take some time to process the transaction. Why is this time not used to contact the other financial institution and verify the check is valid? Then if the check is not valid, I get a call saying "the check was not good" and I don't get money but am not charged a fee.

    The bank does the exact same amount of work to process a good check as a bad one... the only difference is I get to deposit a good check for free, while a bad check would cost me money. IF they verify the funds at the time of deposit before giving me access to the money then they are not out any funds in the interim... so the bank has no risk.

    FYI, the only time I ever had a check bounce was when a company with which I used to do business cashed a check I wrote... then 2 months later, sent a photocopy of that same check back through the system to attempt to cash it again!

    When I got the "you bounced a check" letter in the mail, I knew something wasn't right.. When I called my bank and asked them how a check that cleared 2 months earlier could be re-submitted and bounce 2 months later... they immediately replied "You know what, that's not right..." and the issue was cleared up for me.

    Of course the company that tried the sneaky business tried to act like they hadn't done anything wrong... so I of course stopped doing business with them.
     
  17. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Your bank has not chosen to charge for the transaction ... some have.
    Chase boosting fees on checking-, savings-related services
    Bank of America recently rolled out a free checking account for people willing to give up paper statements and visits to a teller. Otherwise, it's $8.95 a month.

    One consumer figures it's probably futile to switch banks to try to avoid new fees.

    "Chase is probably the leader, and the others will follow shortly," said Aurora retiree Steve Snyder, who banks at Fifth Third. "Where are the cheers now for consumer protections?"

    Chase recently disclosed that it will soon require a $500 minimum direct deposit to maintain free checking if customers don't meet certain other criteria.​
    BTW: That $500 per month is ONE $500 direct deposit per month. Multiple lower deposits do not count. A person could be paid $501 per month and not get a fee but if his weekly paycheck was $499 he'd get charged for the account. (Stupid Stupid Stupid Stupid Stupid). I'm planning on moving my Chase account to a credit union before paying the fee.

    Personally, I believe that banks shouldn't charge for the visit. Getting people in the door gives the bank an opportunity to market services that do make the bank money. But so many banks are seeing their customers as another source of fees (much like local TV stations see their viewers as something they can charge cable/satellite services for).

    BTW: The credit union my wife used to work at would close accounts if the member did nothing but use the account for check cashing and change services. The kind of people that would run a balance of $5 (minimum to keep the account open) and bring in their paychecks to cash and walk out the door. Those people were a drain on the credit union ... and no matter how many "carrots" were offered for leaving money at the credit union many needed the "stick" of canceled accounts to stop the loss.

    It basically is. That hold time prevents a loss to the bank if the check comes back bad. But there is still extra work involved ... and a nominal fee for people who accept bad checks is common.

    If you don't like the fee don't present bad checks. The fee encourages people who accept checks to be more careful with what checks they accept. After all ... the people who accept the check are the first line of defense.

    No ... the good check just goes through undisputed. The bad check has to trace it's way back to the source with people at every step. Electronically processed checks (Check 21) are better at clearing quicker (and have reduced hold times from several days to next day in many cases). Electronically converted checks turn a check into a debit card and are almost immediate. But the check sees more processing if it is bad than if it is good.
     
  18. Game Fan

    Game Fan Baseball Is Life

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    Your check register, as long as you balance your statement every month, is the most accurate way to keep up with your balance. Online banking is convenient, but not as accurate as your register. Also, if you don't have the money, don't write the check or swipe the card. How or when an item comes in will make no difference, if you follow a few simple rules.

    Mistakes are made, by customers and occasionally the bank. If you make a mistake once every couple of years and you have a relationship with someone at your local branch, I'd bet they would waive that fee for you.
     
  19. dsw2112

    dsw2112 Always Searching

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    I've counseled people on money issues in the past, and I would just add one thing to the "simple rules"; create an imaginary floor in your account that you can't go below. I.E. pretend that $100 is the floor and the equivilent of having $0 in your account. If you do this those occasional mistake charges will be of little consequence.
     
  20. Hoosier205

    Hoosier205 Active Member

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    Our grandparents? As far as I know, we don't share any between us. Do you even know what you are talking about? What does this have to do with anyone's grandparents?
     

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