TJP

Outrageous Bank Fees

By Byron A. Ellis-October 06, 2008

If taxpayers are bailing out banks, the outrageous fees charged by banks for overdrafts should cease. For instance, if a bank’s customer incurs a one-dollar overdraft the bank charges a fee of $35.00 for each occurrence.

Bank of America imposed seven $35.00 fees on a jobless recent college graduate account. The former student incurred seven-overdraft occurrences for $14, $10, $3, $21, and three for $5 for a total overdraft of $63.14.

However, Bank of America charged the former student $245 in overdraft fees; this is akin to highway robbery.

But, Congress has seen it fit to use taxpayers’ money to bailout financial institutions that imposed unreasonable fees on taxpayers who are funding the bailout.

And, some banks, such as BB&T, debit taxpayers’ account without permission if the account of a family member is overdrawn.

If the taxpayer’s sibling or spouse has an account with BB&T and they had four overdraft occurrences of $25 for a total of $100, BB&T accesses the taxpayer’s account and withdraws $340 to cover overdrafts fees and the overdraft for the sibling or spouse account, even though the taxpayer’s account did not incur the overdraft.

Here is the beauty of this process for the banks, if the taxpayer’s account only had $300; now the taxpayer has one occurrence of overdraft, since the account is now $40 short.

Furthermore, since the BB&T does not notify the account holder that it debited the account, when the taxpayer writes checks against the account, additional overdraft fees will incurred.

Therefore, the banks have an incentive to raid accounts, because it increases the fee revenues.

Congress in their haze to bailout the Fat Cats did not see if fit to remedy injustices imposed by financial institutions on taxpayers.

Apparently, intervening on behalf of the taxpayers is not a lucrative proposition. Clearly, it appears that bank lobbyists have greater influence on politicians than the voters.

However, given the upcoming elections, voters have a unique opportunity to demonstrate their displeasure with the status quo.

Taxpayers need to hear politicians address unreasonable intrusions in individuals’ bank accounts, and high overdraft fees and credit card interest rates.

It is time to re-regulate credit cards interest rates and bank overdraft fees.

Taxpayers have a right to know where John McCain and Barack Obama stand on these issues. Both candidates supported the bailout, arguing that it would benefit Main Street.

Well, here are three items that will directly benefit Main Street taxpayers. Where do the Republican and Democratic candidates stand on these issues?

It is possible that they will side with Wall Street and ignore Main Street, or they may tell the taxpayers that the unwarranted intrusions in their accounts, the unreasonable fees, and high credit card interest rates are in the taxpayers’ best interest.

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