| Many of us have noticed the trend of | | | | need to be taken as seriously as writing |
| bank overdraft fees steadily increasing | | | | a check used to be. If you don't keep |
| over the past few years. A bounced check | | | | record, then you have to expect at some |
| used to cost around $10 but now is more | | | | point, you'll be paying a fee. |
| commonly around $35 per transaction. | | | | Besides the increase in the amount, if |
| There are overdraft protection plans | | | | you feel that you are paying more fees |
| which only help us build up more and | | | | now than you were in years past, you may |
| more debt. So what can be done? Many | | | | be right. Most banks now engage in the |
| think that the banks should notify | | | | practice of "courtesy overdraft". Even |
| consumers of a transaction that is about | | | | if you didn't sign up for any overdraft |
| to cause an overdraft before the | | | | protection, banks may still approve |
| transaction can be completed. Banks say | | | | transactions over the amount that you |
| that it is just too technically | | | | have in your account and then charge you |
| difficult. | | | | an exorbitant fee for the convenience. |
| Banks are viewed as institutions | | | | Banks say that it actually costs you the |
| provided to us solely to protect our | | | | same as an old bounced check plus the |
| money. In fact, they are a business and | | | | merchant's fee, minus the hassle for you |
| aim to turn a profit at some point. | | | | and the business. What may not sit right |
| Banks are now being accused of | | | | is that courtesy overdraft is also |
| processing large transactions first so | | | | available on debit or credit purchases |
| that all those little ones trickling in | | | | as well as ATM transactions, where the |
| can each incur its own overdraft fee. It | | | | bank knows that you don't have enough |
| has become easier than ever for | | | | money to cover it. Again, the bank needs |
| consumers to rack up hefty fees now that | | | | to make money to continue to provide all |
| we are using not only checks, but we're | | | | of its services and be profitable. |
| also taking ATM withdrawals, using debit | | | | To eliminate future charges, we're just |
| cards, making credit purchases and other | | | | going to have to learn to keep track of |
| electronic payments such as bills and | | | | our many transactions. Ask your bank |
| automatic withdrawals. | | | | about other options that may be cheaper |
| Banks still hold firm that only the | | | | than paying overdraft charges. Most will |
| consumer can actually know what checks | | | | waive fees for first-time offenders and |
| they have outstanding and what | | | | offer decent overdraft protection plans |
| transactions they've made that haven't | | | | or a transfer from savings in the event |
| cleared yet. Maybe they're right. We | | | | of a miscalculation on your part. If you |
| have to take some responsibility for | | | | know you're going to need to overdraw |
| knowing what funds we have available in | | | | your account and don't want the fee, |
| our own accounts. Modern conveniences | | | | sometimes a payday loan is a faster |
| such as check cards and ATM machines | | | | cheaper way to go. |