Banks Charge Overdraft Fees in Predatory Lending Practices. Find Out If You Are Scammed

Stop Banks and Credit Unions from Taking Your Money with Overdraft Fees

How banks and credit unions are scamming their members.

The not-so popular practices, the insidious predatory lending practices of your own credit unions will make you as mad as hell. If you did not know about them, The Center for Responsible Lending has just accused banks and credit unions of turning overdraft loan fees into profit centers. They manipulate the process so that customers get caught paying more fees than necessary, without any warning. Now, you can see why these banks and credit unions are encouraging their customers to participate in online banking. Once you start using that debit card they hand to you, they know for sure that you will be making mistakes by bouncing one or two checks. Oftentimes, ridiculous amounts such as $2.00 or $5.00 cups of Starbucks will end up costing you $50. The number of times these credit unions can charge your account behind your back depends on the number of small purchases you have made when you do not have sufficient funds in your account. These practices must stop if credit unions which claim to take great pride in their community.

Most of the Credit Unions in California charge $25 when their customers do not have enough funds in their account. They offer overdraft protection as a valued service that helps customers avoid embarrassment and merchant charges for insufficient funds. I was hit by these overdraft fees, got mad, canceled the account and asked them to set my account to deny payment in case of lack of funds. That is the problem that comes with online banking. The payments are pre-set. No matter what, they will go through. Account holders will have to make several overdraft fee payments for a higher total. Banks that cover overdraft by charging fees are taking money from American families. They know that the debit card will keep working despite the lack of funds in their account. Common banking practices such as processing the largest check first or debit card transaction first are misleading. Single surprise overdraft can lead to a domino effect.

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