More Americans are getting fed up with giving banks a loan thanks to charges. In order to get a quick payday out of consumers, major banking institutions are stepping up account charges, ATM and overdraft charges. There is obviously some merit to some charges, of course. However, a lot of account holders are no longer amused.
People getting more angry that banks are getting cash advances
ABC reports that Americans are upset that in order to use their own payday cash in a bank, they have to give the bank money. The Office of the Comptroller estimates that there can be 80,000 or more complaints by consumers about their financial institution by the end of the year. That would make it the highest level of dissatisfaction with banks since consumer dissatisfaction with banks started being monitored 15 years ago. Banks have been doing whatever they can to get more instant cash from customers even though new regulations were passed last year to help a lot.
Frustration over overdrafts
Overdraft fees are one of the biggest troubles consumers are mad about. Clearing large transactions before smaller ones is what numerous of the large banks will do. Overdraft fees will stack up if you will find a bunch of overdraft fees as a result of a few small purchases. For example, a person may buy a pack of gum, coffee, a sandwich and pay their power bill with their debit card all in one day but only has enough money for the power bill to get paid. The bank makes a habit of clearing largest purchases first. There is a larger purchase to clear too. Following the larger purchase, all the smaller purchases go into overdraft. That means a fee could be charged for each one. This practice makes a lot of cash until payday loan cash for banks.
Interest rate could be astounding
Since customers are technically borrowing money with a fee, overdraft fees are looked at as a loan till payday often. That means you can pay 3,500 % in simple interest on a $1 overdraft with a $35 fee. If you would like the APR, it ends up being more like 1,277,500 %.
Articles cited
ABC News
abcnews.go.com/Business/wireStory?id=12357543&page=1
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