bank rant

[Loobed]

Originally Posted By: Pablo
Lemme see - Banks, etc pay 0.5% or less interest out and loans are 5-6%+. Trust me the only way they make money are not all those stupid fees!



not entirely true. Your money in the bank has nothing to do with the money they lend out. I think for every $1,000 you put in the bank, they can get $12,000 from the federal reserve.

You should do a web search about how money is lent by the banks. I have seen a few videos but I don't feel like doing a search myself.

I think "money from debt" is the correct search term.

 

[Loobed]

I remember in the 1970's when banks gave out kitchen appliances with every new account. My parents would put $100 in almost every bank in town to get toasters, irons, grills, mixers, etc. They even had my name on a few accounts to get free stuff.

 

[Pablo]

Well there you go. I never said it did. You should have replied to Brett. I don't need to search the web....

But there is a relationship to interest rates paid and loan interest rates. This does not mean a bank has to actually have money to loan......

 

[65cuda]

Since he was told that he would be charged for his checks now he should have been paying attention or moving his account someplace else. That is what I did when a previous bank went from a free account to a fee account.
I doubt if it was just for fun they started a $35. overdraft fee. It should have been in the disclosure statement and if it got down to a negative he should have been paying attention. If a bank closes your account then the other banks locally will know about it. I admit that nobody should deal with BOA or Wells Fargo, but most local banks will work with a person, but if you don't do your part then they aren't going to. Waiting until it gets $700. in the hole leaves little room for excuses IMHO. The way I understand it a bank pays on three different priorities. Don't remember what the breakup is, but basically they have one level that they have to cover so they get paid first then they have a second and third level. I think the regular checks are in the last level. They pay the largest first because they figure that it is the higher priority. I have accounts in both a local bank and a credit union and to be honest I don't see a dimes worth of difference between the two. Personnally I have little sympathy for most overdrafts. It seems like anymore people just spend and don't worry about if they have the money to cover it, but expect the bank to just forgive it and go on. In effect they want the bank to make a interest free loan.

 

[RWEST]

Originally Posted By: Onmo'Eegusee
I cancelled my account at my last bank because they called the police on me.

Sounds like a good reason!!

 

[JustinH]

Bank of america will waive the fees if you call them.

I had a recent problem with them, I signed up for that stupid keep the change account, and I wasn't happy with it, it became annoying after a while. So I went into the branch and cancelled it.

It took the bank manager one second to close the account.

About 6 months later, the account re-opened itself, I have no idea why.

Then they started taking account maintenance fees out of an account with no money in it, racking up fees.

One call to the bank took care of all the fees.

BOA's banking is OK, I have not had too bad of luck with them. Their loan department is terrible, I would never borrow a dime from them.

 

[The_Jeff]

Originally Posted By: 65cuda
I doubt if it was just for fun they started a $35. overdraft fee.


Well, fun and profit. I like to think most service fees reflect someone doing something. Like if I pay a guy $30 to rebalance my tires he gets dirty and works for a period of time. The bank just lets the computers run. The bank did not perform $700 worth of service for this poor chap.

Quote:
It should have been in the disclosure statement and if it got down to a negative he should have been paying attention.


Yes.
Quote:


Most local banks will work with a person



When I was 10 or so I opened an account at Baybank in Massachusetts. They had a state law that said you couldn't charge fees to anyone under 19. I had that account until I turned 19. I went in there and asked them nicely to keep waiving the fees. They refused to work with me. I closed the account. I have not found many banks since that will waive fees either.

Quote:

but if you don't do your part then they aren't going to. Waiting until it gets $700. in the hole leaves little room for excuses IMHO.


Imagine if you will, a lifestyle where you don't open every envelope. You leave $15 in what you remember being a fee-free checking account, then don't deposit or withdraw anything. Skip the statemens and you don't watch the inferno as they pull the rug out. There are many who live this way!!

Quote:

The way I understand it a bank pays on three different priorities... They pay the largest first because they figure that it is the higher priority.


Pure marketing bull when they came out with that plan. Increases fees and that's it.

Quote:

Personnally I have little sympathy for most overdrafts. It seems like anymore people just spend


The bank spent that money!!! Our schlep in this story had money in a "safe place" and look where that got him.

 

[65cuda]

How many times did they charge his account? If it was $35. a pop then you do the math. Somebody wasn't paying attention to hiss account and now wants them to forgive him.
Why should they waive the fees just because you turned 19? Aren't you suppose to be an adult then and capable of monitoring your account? However I do know that with my bank if you go in with a explanation of why you overdrew and they check and you haven't done it before they will usually work with you. Just because yours doesn't, doesn't mean that all don't.
Lifestyle has nothing to do with it. It is YOUR responsibility to monitor your balances and if you don't open the envelopes then that is your fault not theirs. Hardly an excuse. That many live this way is the problem. The bank isn't your mommy.
Not a marketing ploy. They have certain debits that they have to pay and others that are optional. Maybe you ought to check with your bank for a explanation instead of just jumping to conclusions.
Sorry but I still have no sympathy. I've only had one overdraft and that was because my wife deposited the savings and checking into the wrong accounts. Our fault. I paid the fees and went on. Until BOA started sending me a bill because they didn't know how to figure the bill. Went back and paid it off again, about a$1. and closed the account and never looked back. It is your responsibility to monitor your balances and with online banking there is no excuse not to know what is happening and going to them and getting it straightened out. People need to learn a little basic math and how to balance a ledger.