Last year, American banks collected $24 billion from their customers in overdraft fees – up 35% from 2007. About 51 million Americans overdrew their accounts, incurring penalties averaging $34 per transaction. Financial analysts expect these numbers to increase for 2009.
Without the money they raked in from overdraft penalties, 45% of U.S. banks would not have been profitable last year.
If you bank with Wachovia (Wells Fargo) and have been hit with an overdraft fee, do not simply accept it. Call and ask for a refund.
I don’t care if you deserve the overdraft fee or not. Call Wachovia “Customer Service” and simply ask that they waive your overdraft fee(s). If you have a relatively good track record, they will usually waive at least some of your penalty.
I over drafted about six months ago, receiving a fee of $150. After calling, I succeeded in reclaiming $75 from Wachovia. This is an under-publicized policy (for obvious reasons), and there’s no reason you shouldn’t take advantage of it.
More on how banks encourage overdrafts later.
7 Comments
Or just switch banks to one with a better policy. That’s why I left Bank of America.
Who did you switch to? I’ve heard credit unions are possibly a good alternative to the big banks …
I second that. Accidentally paid a credit card off with my Wachovia acct instead of my normal one and overdrafted. It was $22 and they only refunded $17. Not as dire as your circumstances but it’s pretty lame.
Funnily enough, just finished reading this about how the bank lobby is up in arms about a bit of regulation and how Barney Frank has derailed the process: http://www.nytimes.com/2009/10/10/business/10nocera.html
Jordan,
Thanks for the link. The greed of the financial industry seems to know no bounds.
Actually, I switched to Wachovia, but I’ve been fortunate enough to not make a mistake with them. I will definitely keep an eye out after your situation though. My wife has Citi, and for whatever reason is insanely loyal to it.
I got Wachovia back when I first went to UNC due to their free checking account. Had it for close to nine years now with a spotless record. They said that was the only reason I got my $17 back. Shows how far loyalty really goes with them (still a $5 ‘mistake’ fee).
Jordan,
I did appreciate that they would at least refund some of the fees. I’ve heard that a lot of the other big banks won’t budge at all when customers call about this issue (it does keep them from losing money, after all).