Tweet
Consumer Alert
Is there any recourse when bank overdraft fees start to add up?By Mitch Lipka
Globe Correspondent / October 19, 2008 Text size – +
Q. My son is away in college in Madison, Wis., where there is no Bank of America. He neglected to check into his balance online. He used his debit card to have lunch/snacks in the amount of $5.79, $4.82, $3.11, and $2.23, so the balance in his account was -68 cents then -$5.50 then -$8.61 then -$10.84, all on the same day. He was charged $35 four times the next day for overdraft fees. I went to the bank manager who said all he can do was offer us a credit for one of the fees. I think it's unfair that the bank allows money to be withdrawn despite a negative balance and slaps on the fees per transaction rather than per day.
DiscussCOMMENTS (3)MAI PHAN, Belmont
A. Banks have been under fire for these fees, which are obviously disproportionate to the charges. Earlier this year, Bank of America increased to seven how many times it would levy the fee in a given day. The Federal Reserve has proposed regulations that would require something that could have prevented your son's situation - allowing him to back out of his purchases by being told no funds were available.
Keep an eye on www.federalreserve.gov to see if the regulations are approved and complain to Bank of America corporate. Technically, they can issue these charges, but perhaps given how out of balance the fees are to the actual charges, they may be a bit more accommodating than the bank manager.
Source: http://www.boston.com/business/perso...art_to_add_up/
