Scope (?):  All Topics
YanBz
admin
Hot or Not?
0

$38 cup of coffee (overdraft fees)

submitted on March 30, 2009 by YanBz in "Member's Lounge", last updated on April 10, 2009 by YanBz
Would you pay $38 for a cup of coffee? Clifford Phillips of Spokane, Wash., did. He used his debit card to pay for a latte, not knowing there wasn’t enough money in his checking account to cover it. The bank could have declined the transaction for insufficient funds. Instead it approved the electronic payment and dinged his account with a $34 overdraft fee.


http://www.msnbc.msn.com/id/29879567
        

Favorite
  Comments
  • 19699
    Solstice
    professor
    1 6 2
    11 4 1
    Posted by Solstice on March 30, 2009
    [reply] 0 1
    Couple of points here just to play Devil's advocate...

    "He used his debit card to pay for a latte, not knowing there wasn’t enough money in his checking account to cover it."


    If you are that careless with your personal books and finances, where a latte puts you over the edge, then you're due to get burned at some point.

    "Phillips didn’t know his account had this overdraft feature and doesn’t want it."


    He signed the paperwork, and should have read it first then. Seriously, every bank to my knowledge has overdraft fees of one form or another.

    “I should have the right to say I don’t want it.”


    I don't recall this right being listed in any state constitution. much the U.S. Constitution. People throw around the word "right" way too carelessly. Fact is, he signed a legally binding contract.
  • 19713
    YanBz
    admin
    Posted by YanBz on March 30, 2009 [reply] 0 0
    Certain things that banks are doing border with scam. Defaulting you to overdraft protection and burying it on page #17 of your agreement is one of them. Watch this in your spare time:

    http://www.pbs.org/wgbh/pages/.....ws/credit/
      19716
    • Solstice
      professor
      1 6 2
      11 4 1
      Posted by Solstice on March 30, 2009
      [reply] 0 1
      I will look into it tomorrow, but I gotta' say with all honesty that I would have read page #17.
      I never sign anything until I've read the entire document. I even read those those "change to agreement" pamphlets they send every couple of months. (Save them in my file cabinet as well.)
  • 19734
    phunkeey
    teacher
    Posted by phunkeey on March 30, 2009 [reply] 0 0
    Plus, they will process debits highest to lowest instead of the order they occurred. That way if one bounces more will bounce meaning more fees for them. Bank of America does this and it has resulted in a class action lawsuit that you can read about here: https://clossonsettlement.com/index.htm
  • 19817
    JackBauer
    admin
    Posted by JackBauer on March 30, 2009 [reply] 0 0
    I was at Starbucks two weeks ago and the new cashier charged me $204 for a Apple Chai and $20 recharge of my Starbucks card.
  • 19991
    veggiemonkey
    beginner
    Posted by veggiemonkey on April 1, 2009 [reply] 0 0
    It could have been worse. My g/f works for Barnes & Noble, so on her breaks she gets a chai. She had gone over her balance on a Friday evening, not realizing it. Over the weekend she bought 9 chais, each separately of course. All said and done, I had to bail her out for around $400.
      19994
    • Solstice
      professor
      1 6 2
      11 4 1
      Posted by Solstice on April 1, 2009
      [reply] 0 1
      Hope those chais were tasty at least.
    • 19997
    • bnwsmile
      beginner
      Posted by bnwsmile on April 1, 2009 [reply] 0 0
      Oh my Gosh. Ok lesson learned. Don't shop at Starbucks! lol! Ridiculous!
  • 19998
    veggiemonkey
    beginner
    Posted by veggiemonkey on April 1, 2009 [reply] 0 0
    I take that back. I was reminded that she talked them into halving the fees. So, it was only $175 in overdraft fees.

Leave a Comment (members Sign in to comment)

Name

E-Mail (will not be published)

2 x 3 = ?

Emoticons

'Mr Green''Neutral''Twisted''Arrow''Eek''Smile''Confused''Cool''Evil''Big Grin''Idea''Red Face'

(more)


 

Browse by tags