My Fix for Bank Overdraft Fees
In this morning’s Washington Post Michelle Singletary is jumping for joy over new rules that regulate bank overdraft fees for transactions that take place at automated teller machines or with debit cards. Her words: “it took a deep recession that finally the need to protect consumers is outweighing the almighty concern for business to make a buck.”
She even quotes from an organization calling itself the “Center for Responsible Lending” that complains that the new rules don’t go far enough.
Unfortunately, the new rules will do nothing but raise fees and costs for those who act responsibly. More people will now be denied access to automated teller machines and debit cards because of the irresponsible minority.
Look, no one forces you to use an automated teller machine. No one forces you to obtain or use a debit card. My solution for overdraft fees? Take personal responsibility and don’t overspend. Know how much money is in your bank account.
There, I did it. I fixed the problem and it didn’t take one committee to do it.
The “almighty business” that “makes a buck” because it charges fees under free and voluntary contracts entered into between it and its consumers are the same businesses that brought us the convenience of automated teller machines, debit cards, and credit cards. These are the same businesses that allow us to pay bills with electronic transactions using simple online portals. These are the same businesses that provide access to capital for thousands of entrepreneurs across the country. The entrepreneurs that make America grow.
When will we stop with the over-regulation? When will consumers learn to act responsibly?
Mr. Glass:
Well said. I remember the days in the 1960′s when our single mother of us 3 boys had here “budget folder” When she got her miniscule child support money from our dad and her pay from lowly jobs, the money went in there for the bills. Once all the bills were paid IN FULL and the rainy day fund was added to, if there was “discretionary money” we got a treat, if not, no dice. That’s the way it was.
Personal responsibility – dealing with the cards she got dealt.
What the heck happened to bring us to this in today’s world? More importantly, how do we reverse the tide because the America we know is starting to show major cracks in our armor and we better get it under control starting in every home. Your words of wisdom and this very practical simple repair idea is a fantastic start. Keep blogging and inspiring.
I still don’t see as to how overdraft fees are fair, I find them ridiculous
I admit I’m terrible with money, but being charged a fine, costing $25 dollars for going over my account balance by $1.24 is just ridiculous, and the next best thing, I go an relay the fees, only to find an extra $5 fee for being late, and another courtesy $35 fee for who knows what
the banks may say this is legit, but I find it a underhand move