I’ve just been made aware of a new tactic being used by banks to generate fees.\u00a0 I thought Bank of America was the absolute worst for engineering mechanisms to maximize overdraft fees.\u00a0 It seems that WaMu (Washington Mutual) now holds this honor above BOA with a process that is simply evil at it’s core.\u00a0 They will display a deposit in the accounts “Available Balance” but will then charge overdraft fees on any transactions that occur before the deposit actually moves to a posted status.\u00a0 They have set this period between “pending” and “posted” at 24 hours.<\/p>\n
So here’s how it works: You get a direct payroll deposit at midnight.\u00a0 WaMu will show this deposit in your “Available Balance” on-line and through any other available inquiry method.\u00a0 So you have the money to spend correct?\u00a0 Wrong.\u00a0 If you spend any money that exceeds the funds available prior to this deposit you will be charged an overdraft fee for each negative transaction.\u00a0 WaMu explains this through their process of posting all debits before deposits.\u00a0 But wait.\u00a0 WaMu displayed the funds as available?\u00a0 Doesn’t matter.\u00a0 The funds aren’t actually available to be used until the deposit moves into “posted” status 24 hours after they’ve displayed the funds as available.<\/p>\n
Let’s face it. \u00a0 We’re getting way past the point where the bank is mostly a liability for consumers in todays economy.\u00a0 These fee tactics and irresponsible lending practices have undermined faith in the banking system for a large segment of Americans.\u00a0 In fact the number stands at about 36% according to the banking industry itself so we can consider that the most conservative estimate.\u00a0 It’s actually probably more like 50% and growing.\u00a0 The banks explain all of this through the repeated proclamation that they are a business intending to make money like any other.\u00a0 So run, don’t walk to your local credit union and make it known to the banks that if their business is taking our money for nothing then we don’t want their product.<\/p>\n","protected":false},"excerpt":{"rendered":"
I’ve just been made aware of a new tactic being used by banks to generate fees.\u00a0 I thought Bank of America was the absolute worst for engineering mechanisms to maximize overdraft fees.\u00a0 It seems that WaMu (Washington Mutual) now holds this honor above BOA with a process that is simply evil at it’s core.\u00a0 They … Continue reading Bank Fees: Another Fee Tactic<\/span>