Tbf, overdrafting is spending money you dont have. If you overdraft and the bank lets you spend money you dont have, do you think theyre just gonna do you a solid there? They let you spend money you didnt actually have. Thats a service, like credit, and one that tends to come at a cost even though some banks dont charge for it.
To call a bank charging for an offered service “robbing you” is pretty ridiculous. There are banks that dont charge a fee. Bank with them. There are banks that wont let you overdraft at all. Bank with them. No one is robbing anyone by covering for them when they spend money they dont have. They told you what it costs to do so. You still did it. Thats not remotely similar to ripping people off in any way
You can have the money and still be charged overdraft fees.
Consider multiple accounts under one number, all set up to transfer money between them for free and with no limits. But once you spend from an account without enough funds allocated, then that money transfer will cost money, usually $30-40.
Real life application: When a medical biller uses the wrong card on file they can rack you up some hefty charges before you know it, and the bank usually only forgives one fee, not the eleven extra ones the biller triggered by making separate, itemized charges.
All the bank was doing was moving the money from a savings account with the same number, and then charging a fee for that. And only a bank can charge and collect in one action.
I dismantled the automatic transfer system that had been set up since it was just a fee scam. Now payments just fail if I haven’t allocated the money to the debit account.
But it’s still a scam, even if you consider benevolent credit extensions. Extending this credit is not costing them $30-40 per transaction. Walmart can just write off thefts of under $20, for tangental context.
Tbf, overdrafting is spending money you dont have. If you overdraft and the bank lets you spend money you dont have, do you think theyre just gonna do you a solid there? They let you spend money you didnt actually have. Thats a service, like credit, and one that tends to come at a cost even though some banks dont charge for it.
To call a bank charging for an offered service “robbing you” is pretty ridiculous. There are banks that dont charge a fee. Bank with them. There are banks that wont let you overdraft at all. Bank with them. No one is robbing anyone by covering for them when they spend money they dont have. They told you what it costs to do so. You still did it. Thats not remotely similar to ripping people off in any way
You can have the money and still be charged overdraft fees.
Consider multiple accounts under one number, all set up to transfer money between them for free and with no limits. But once you spend from an account without enough funds allocated, then that money transfer will cost money, usually $30-40.
Real life application: When a medical biller uses the wrong card on file they can rack you up some hefty charges before you know it, and the bank usually only forgives one fee, not the eleven extra ones the biller triggered by making separate, itemized charges.
All the bank was doing was moving the money from a savings account with the same number, and then charging a fee for that. And only a bank can charge and collect in one action.
I dismantled the automatic transfer system that had been set up since it was just a fee scam. Now payments just fail if I haven’t allocated the money to the debit account.
But it’s still a scam, even if you consider benevolent credit extensions. Extending this credit is not costing them $30-40 per transaction. Walmart can just write off thefts of under $20, for tangental context.