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Stories like this are the reason why banks need to be heavily regulated

Discussion in 'Sports and News' started by Baron Scicluna, Dec 14, 2011.

  1. Baron Scicluna

    Baron Scicluna Well-Known Member

    An Illinois teenager opens a savings account at a local TCF Bank. His savings dwindle to $4.85. The bank socks him with $229.10 in overdraft fees.

    Here's what happened: Kid's account goes to low amount. Bank declares they have to charge a $9.95 "maintanance fee" (WTF are they maintaining?). That puts him below $0. They they slap a $28 per day overdraft fee. By the time the mom tries to close the account, she's told to pay the money, or she can't close it. She pays it, and then complains to a Chicago Tribune reporter, who wrote about it, and the bank, embarrassed, gave the kid and mom back their money.

    http://news.yahoo.com/illinois-teen-learns-bank-fees-hard-way-154654489.html
     
  2. TheSportsPredictor

    TheSportsPredictor Well-Known Member

    Rules are rules.
     
  3. Or, people could stop signing with banks that have such terrible contracts. Credit Unions.
     
  4. qtlaw

    qtlaw Well-Known Member

    I just had this with Bank of America.

    Closed kids' savings account on a Sat. they said it will officially close Monday. Unbeknownst to me, on Monday they "give" us 1 cent in interest and guess what? Account stays open. Yippee, good times!!! We get to keep charging maintenance fees. They the reopened a dormant credit card account and paid themselves from that and charged even more fees. Oh yeah, the address for that credit card was 15 yrs old so no idea until this shows up on credit record during a refinance. 2 hours later on a phone, they finally reverse everything and walk away. Scumbags.
     
  5. Stitch

    Stitch Active Member

    Credit unions.
     
  6. Baron Scicluna

    Baron Scicluna Well-Known Member

    My wife had this happen to her at B of A:

    She goes to the bank to have some money transferred from her CD to her checking so she could pay some bills. Bank manager writes out paperwork. She writes out checks for her bills.

    About 10 days later, she goes to the ATM, and finds out she's -$240, even though the money she transferred over should have covered the bills. She calls B of A. The bank took a week to officially transfer the money over to her checking. Meanwhile, her four checks went through. The three with the least amounts would have still kept the amount above $0, with the most expensive one putting her in the red. So what did B of A do? They applied the most expensive one first, putting her below $0, then applied the next three, giving her four overdraft fees of $35 each. All this because they took a week to process her funds transfer.

    You bet she protested, and they waived two of the fees. She took her money out to another bank a short while later.
     
  7. I Should Coco

    I Should Coco Well-Known Member

    Thanks for the link, Baron.

    And FWIW, the Chicago Tribune reporter, Jon Yates, is good people.
     
  8. Care Bear

    Care Bear Guest

    My first thought, too.
     
  9. poindexter

    poindexter Well-Known Member

    It took a whole two weeks to take the account from plus $5 to -229.

    Its frigging ridiculous, and to even attempt to blame the kid is asinine.
     
  10. PeterGibbons

    PeterGibbons Member

    I don't know that I've ever met anyone who would consider themselves a "satisfied customer" of Bank of America, they are pure evil, the definition of corporate greed.

    I'm starting to understand why people were stuffing money in mattresses during the Great Depression, banks love to charge fees and screw you over, then take months to fix things all while ruining your credit in the process only to be able to charge outrageous interest rates.
     
  11. Baron Scicluna

    Baron Scicluna Well-Known Member

    The story didn't say how long he ignored it. It just said that he withdrew money down to $4.85, then just forgot about it.

    Bottom line is, the kid didn't overdraw, the bank deliberately took his account down below zero, then tacked on numerous fees.
     
  12. poindexter

    poindexter Well-Known Member

    Even though the bank screwed them, god forbid you just walk away from their idiocy, because you are probably input into the CHEX system, and have a big scarlet letter from here on in.
     
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