We warned you. And by now, you may have received the first sign of the banking industry’s compulsion to treat you like you’re: a.) stupid; b.) disposable; c.) stupid and disposable.
Now look, we like the tellers at the local Chase branches. They’re friendly, helpful, everything you could want when you’re making a deposit or explaining that you accidentally left your card in the ATM again. In fact, some of us like them so much, we can’t be swayed to change, no matter how much Huffington Post tells us we should.
But when the aforementioned sign arrived in our inbox under the subject, “A Change is Coming to Your Checking Account,” we couldn’t help but see red – as in, “in the red”:
Chase Debit Card Overdraft CoverageSM is a convenient feature that may give you a lot of flexibility in how you use your debit card. Soon, we can no longer provide it automatically.
Sounds scary, doesn’t it? Oh, no! We’re going to lose convenience? Flexibility? Gosh, what can we doooooooooo? Help us, Chase!
Except, the fancy “overdraft coverage” terminology is just bank-speak for overdraft fees – something the banks have been ramping up in roughly the same proportion they’ve been lapping up taxpayer funds.
Fine print (bolding ours):
IMPORTANT DETAILS ABOUT CHASE CARD OVERDRAFT COVERAGE
• Beginning 8/15/10, we will not authorize and pay overdrafts for everyday debit card transactions without your approval.
• An insufficient funds fee of up to $35 each time may be imposed for covering overdrafts that result in a negative end of day balance. Overdrafts may be created by check, in-person withdrawal, debit card transaction or other electronic means. Effective 3/29/10 this fee will change to a maximum of $34.
• Each time your account is overdrawn for 5 or more consecutive business days, we will charge you up to an additional $15.
• Once an overdraft has occurred, you are obligated to bring your account to a positive balance promptly.
• Whether your overdraft will be paid is at Chase’s discretion, and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have had excessive overdrafts.
• Debit card purchases that are set up to bill automatically (like a gym membership) may continue to be authorized at our discretion even if you do not sign up for Chase Debit Card Overdraft Coverage.
Hmmm. As noted, that “convenient, flexible, overdraft coverage” sounds an awful lot like the grossly unjust “insufficient funds fees” that provide banks with up to half their revenue at the customers’ expense.
Suggestion: Don’t opt in to the scam. Use cash. It’s just as convenient and flexible, you’ll have a better sense of how much you’re spending and you’ll be helping the banks clean up their act – instead of just cleaning up.
This article appears in Tree Cop.
Say no to bogus fees. When you get charged one, threaten to take your money elsewhere and see if they back down.
It works with credit card companies that have tried to whack me with an annual fee simply for the privilege of being their customer.
Worst case scenario, you use the incident to find a better bank.
NVB sent me a letter telling me I can opt-OUT of the "overdraft protection" if I want, which is, I believe, contrary to the law, but whatever.
Just go to a local bank.
Just don’t spend money you don’t have.
Most Americans could only threaten to take their debt elsewhere.
Kate – I’m not sure what you mean by ‘just go to a local bank’…are you under the impression that the local banks don’t charge fees? But you’re oh so wrong! First, what bank do you consider local? And second, have you looked at their policies? If you know of a ‘local’ bank that does not charge fees I want to know about them!
The big shiesty banks like B of A, US Bank, and Chase come to mind as not local and trying constantly to send user agreements/account amendments that do not benefit the user. It is always some bureaucratic run around whenever you even try to ask them how their day is going .
I think I meant Credit Union.
Of course they all charge fees.
If anything, the local banks and credit unions are worse. I go to Coast Central Credit Union here in Eureka, and they have the same, exact types of fees. I found this out when I was charged an NSF fee, even though my online statement showed that I had a positive balance. Apparently, they still hadn’t credited me for an earlier deposit, even though the statement said that the funds were available.
In any event, I called them up and TRIED to opt-out of the "feature" that put charges through (whether I wanted them to or not) and then charge me a hefty fee. They said that CCCU doesn’t allow you to have a checking account with them unless you have this "feature" with it.
Although Congress just passed a banking reform bill that forces banks to stop this sort of predatory practice, I’m not sure that credit unions fall under the same restrictions as banks do. So, the big banks like Chase might actually end-up being less of a rip-off than credit unions. For what is supposed to be a local, friendly, member-based credit union, Coast Central is no better than any other big-corporation bank when it comes to unwanted "features" and hefty fees.
One other little pet peeve… Their antiquated ATM machines (which are both in drive-thru lanes, making walking up to them kinda dangerous) are only emptied out once or twice a day, and you don’t get any credit for deposits for a couple of days. On the other hand, Wells Fargo’s ATMs actually scan deposited checks and cash, so you get credit right away on cash and can immediately advance up to $100 on deposited checks. They have both drive-thru and walk-up ATMs as well. Sometimes, the big banks are actually more user-friendly. Just depends on which one.
I have a good idea.
JUST BOYCOTT CHASE BANK!
Cash is king. Deposit your money if you must. Then, take out cash. if you don’t have the funds, then you won’t overdraft. Like everything else these days, you have to pay more attention then ever before to the minutiae, leaving no time for much else.