Do you like paying overdraft fees? Of course, not nobody does. In fact, even those bank customers who logically can understand why banks feel they have to charge overdraft fees resent having to pay them when the time comes.
Paying overdraft fees, for most people, is a bit like paying a parking or speeding ticket. You did something wrong, you knew it was wrong, and now you have to pay the price.
The trouble with the whole overdraft fee system that most major banks have in place has to do with a lack of transparency. In other words: most bank customers who sign up for overdraft protection programs do not really have a complete grasp of how the programs work.
In fact, until July 1, 2010, most banks overdraft protection programs were opt out, meaning the customer was just automatically enrolled in the programs without much explanation at all. Unless the customer opted out of the program (which very few did), they just went along with it.
But even now (post July 1, 2010), with Fed mandated opt in programs, there remains an overall lack of transparency.
Why Bank Customers Care about Overdraft Fees
Today, bank customers care more and more about overdraft fees because we are realizing just how much they cost us annually. The way that overdraft protection programs are set up allows you to make an unlimited number of charges to your debit card, even when your checking account balance is in the red.
The same applies to checks and credit cards linked to the same checking account. In other words, if you are out on the town or online making purchases on shopping day, there is no checks and balances style process for getting those charges rejected on the spot. That may sound like a good thing after all, who likes to get their charges rejected?
Well, when you find out that your 4 debit card charges just cost you $140 because of non sufficient funds in your account, suddenly you may wish the charges had been rejected instead.
Why Banks Like Overdraft Fees
On the other side of the overdraft protection fence are the banks. They, collectively, love these programs. Why? Banks bring in over $30 billion (with a b ) each year in overdraft fees alone. Banks have every reason to encourage every last customer to sign up for these very profitable programs.
How to Get Overdraft Fees Taken Off 3 Steps
Where does all of this leave you and me if we discover an overdraft charge on our account? Here are 3 steps to get overdraft fees taken off:
1. Research the situation: As with anything in life, start by doing your homework. Research the time, date, merchant name, transaction amount and charge date for the transaction. Also, find out how recently your balance was large enough (just prior to this transaction date) to cover the charge. Obviously, if your balance went into the red the morning of the charge, you have a better case than if you were at zero balance for a full month beforehand.
2. Call your bank: Armed with the facts about the case, call your bank and plead your case.
3. Be nice, but firm: As you proceed, be pleasant, be nice, but be firm. Ask that you get your charge refunded. It s okay to say it was your fault (unless it was truly a bank error that caused the overdraft). Most banks allow up to one overdraft refund per 6 month or 1 year period.
Whether or not you get the unwanted fee taken off of your account, you should consider switching banks to one that will never you charge you an overdraft fee even if you overdraw your account. They are out there and they want to do business with you.
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