No, there’s a law now where they have to allow you to opt out of overdraft “protection”. They just decline the transaction but they don’t charge you any fees.
Comment on Reliable bank account
paultimate14@lemmy.world 5 weeks ago
“I kept overdrafting my account even though I opted out”
Is this some SovCit shit where they think “opting out” of the terms of service for their bank account is an option?
Jerkface@lemmy.world 5 weeks ago
Ookami38@sh.itjust.works 5 weeks ago
If only they didn’t charge fees. My bank charges an insufficient funds fee that’s conveniently the same amount as the overdraft protection fee. So my options are eat the fee and get my stuff, or eat the fee and not get my stuff.
I’m not entirely sure this is legal, but I was told directly by a representative that these were my options. It’s quite literally a poor tax.
ApathyTree@lemmy.dbzer0.com 5 weeks ago
I use a credit union and they don’t penalize for either one. There’s a small “get gud with money” fee for the transfer if you use overdraft protection, something like $1.50 or whatever, but I don’t think there’s an insufficient funds fee at all. They just decline the transaction.
So your options might actually be “eat the fee, or switch banking institutions”, but they won’t tell you that, ofc.
Ookami38@sh.itjust.works 5 weeks ago
Well, yeah, switching institutions is always an option, unfortunately it’s not a great one here. I’ve used a few, and unfortunately this one seems to be the best in my area.
Nfamwap@lemmy.world 5 weeks ago
Dude you need a new bank, or credit union, or GameStop.
An insufficient funds fee!?! Fuck me, America.
sugar_in_your_tea@sh.itjust.works 5 weeks ago
Yeah, when I look into a new bank for whatever reason, the first place I go is the fee schedule and I look for BS. Most big banks have a ton of BS in there, so avoiding them is usually sufficient if you don’t want to read a table of fees.
jabathekek@sopuli.xyz 5 weeks ago
Just don’t be poor. Those bootstraps are there for a reason.
Sonicdemon86@lemmy.world 5 weeks ago
Since I opted out of overdraft protection several years ago with my credit union, I’ve never been charged insufficient fund fee. Sounds like banks are doing shady/shity things to their consumers again. When will people learn to leave banks and go to a credit union that cares about their people before profits?
Ookami38@sh.itjust.works 5 weeks ago
I love that last line that shifts the onus of responsibility to the consumer.
Really, though, I’ve gone through a few banks, and am current with a credit union. They’re better than what I got with the banks, but they’re still shady, still wont to charge whatever fees they can get away with. There’s very little oversight, and in a lot of cases you’re kinda stuck with what you get.
papalonian@lemmy.world 5 weeks ago
Just curious. Why not just get a different bank or credit union?
Ookami38@sh.itjust.works 5 weeks ago
Mentioned in another post, but I don’t qualify for many credit unions beyond my local one that I currently use. I’ve used a few different bank options, but none of them have really been any better, and usually worse.
FiskFisk33@startrek.website 5 weeks ago
what do you mean? If I try to pay with an empty bank account the transaction is simply denied.
Nothing sovcit about not wanting the bank to give you what’s essentially a small expensive loan.
sugar_in_your_tea@sh.itjust.works 5 weeks ago
In fact, overdraft protection is typically opt-in, so just don’t sign up for it and you’re golden.
The only overdraft I use is self-funded overdraft where it pulls from savings instead of a tiny bank loan. I have it send me a notification when that happens so I can tell when my cash flow is wonky.
Ookami38@sh.itjust.works 5 weeks ago
They mean opting out of overdraft protection. Banks typically allow you overdraft protection, where instead of denying your sale at point of sale, they’ll pay it, charge you a fee, and let the transaction go through.
If you opt out of overdraft protection, it should instead deny the sale, and you don’t get to buy whatever. At my bank, they do this and then charge an insufficient funds fee, which is the same as the overdraft fee. It’s bullshit.
pinkystew@reddthat.com 5 weeks ago
Some banks allow you to choose- If you overdraft, do you want us to pay the vendor, and then hit you with a overdraft fee? Or do you want us to reject the charge?
captainlezbian@lemmy.world 5 weeks ago
Yeah. I’m in the latter group. I’ve got my secret gas cash, but if I run out of money I get rejected. It hasn’t happened since college, but I keep it in case
Schmeckinger@lemmy.world 5 weeks ago
I was able to opt out of overdrafting here in Germany, so instead of going negative it just declines.