Banks are waiving account overdraft fees through the end of the year

Hey there,

Following up on this article:

Has anyone actually received a notice from JP Morgan Chase yet about them pulling the plug on overdraft protection?

Does anyone have the inside scoop specifically regarding JP Morgan Chase—like, what does the actual rollout process look like?

gentlehawk12 said:Hey there,

Following up on this article:

Has anyone actually received a notice from JP Morgan Chase yet about them pulling the plug on overdraft protection?

Does anyone have the inside scoop specifically regarding JP Morgan Chase—like, what does the actual rollout process look like?

From what I’ve gathered reading through the news lately, they are phasing out some kind of "negative margin" feature, while apparently there aren't any major changes coming to standard checking account overdrafts. To be honest, I hadn't even heard of this "negative margin" thing until now, and if my understanding is correct, it sounds like an incredibly predatory practice—banks basically taking advantage of people who are either in a tight spot or just don't know any better.

From what I understand, that’s just the overdraft limit the bank approves on your checking account every six months

gentlehawk12 said:Hey there,

Following up on this article:

Has anyone actually received a notice from JP Morgan Chase yet about them pulling the plug on overdraft protection?

Does anyone have the inside scoop specifically regarding JP Morgan Chase—like, what does the actual rollout process look like?

So, starting yesterday—Sunday around noon—the JPMorgan Chase ATMs were totally down. At least three of the ones I always use. Honestly, my local corner store basically gave me my groceries on credit just because they know me, otherwise I would've been stuck! I finally paid them back this morning after hitting up a currency exchange. But get this: the ATM was dead again this morning, and there’s already a massive line forming outside.

And man, I had a real "colorful" conversation with the JPMorgan Chase helpdesk yesterday afternoon. Not exactly a highlight of my week!

gentlehawk12 said:From what I understand, that’s just the overdraft limit the bank approves on your checking account every six months

Man, Jamie Dimon is playing dumb again. Honestly, he’s been pulling this exact same stunt for fifteen years now.

Interest rates aren't being overcharged—the maximum penalty rate is strictly set by law, and it's up to the Federal Reserve inspectors to make sure everyone plays by the rules.

840,000 people. 😲

So now they’re acting like some basic loan with a standard interest rate is some kind of miracle.

What exactly is a silent penalty? Does that mean everyone is expected to just bring their balance down to zero or what, precisely?

Sent from my PRA-LX1 using Reddit

Is anyone actually listening here? It’s like talking to a brick wall.

The Federal Reserve claims: 'We aren't looking to scrap existing silent spreads—we just want to lower their cost!'

https://www.reuters.com/news/business/fed-statement-on-spreads-costs/

So, you've got that standard overdraft that banks set up by law. It’s basically for people with a steady paycheck—if you're getting paid regularly, you're good to go. If you aren't? Well, then you can't really dip into the red. I'm stuck in that boat myself since I don't have a regular salary coming in. But hey, if you're looking to fix that, you could probably just head down to your local Chase branch and work out a deal to get an overdraft limit. You know, if you have other income sources to show them... but watch out, because those interest rates on unofficial overdrafts can hit like 17% if you're not careful.

Correct me if I'm off base here.

Is there a group of you guys out there who just bolted and left all their bills unpaid or something? I honestly can't wrap my head around where those 800,000 entities came from.

Let’s be clear—a negative balance is still a negative balance, even if it sits below the approved limit. If a client has an official overdraft limit of $5000, there is absolutely no reason why a bank would suddenly decide to let them slide another thousand into the red... yet somehow, the clients end up walking away happy.

John Chase3 said:Let’s be clear—a negative balance is still a negative balance, even if it sits below the approved limit. If a client has an official overdraft limit of $5000, there is absolutely no reason why a bank would suddenly decide to let them slide another thousand into the red... yet somehow, the clients end up walking away happy.

Are we really suggesting that nearly a third of the adult population is living deep in the red? Honestly, I find that hard to swallow. Didn't we establish earlier in the discussion about wages that even entry-level service jobs in cities like Chicago are paying upwards of $1,500?🤔

Nathan Evans78 said:Is there a group of you guys out there who just bolted and left all their bills unpaid or something? I honestly can't wrap my head around where those 800,000 entities came from.

Big thanks to Slavko Linic for "kindly" making sure every single worker in this country opens a checking account. Now my bank gets to charge me a monthly fee just for "looking after" my money—as if I wouldn't know how to do that myself! And then, oh yeah, they were so generous as to give me an overdraft limit that I don't want and definitely don't need. Apparently, there's over 800,000 of us stuck in the same boat.

Jack Cook7 said:Big thanks to Slavko Linic for "kindly" making sure every single worker in this country opens a checking account. Now my bank gets to charge me a monthly fee just for "looking after" my money—as if I wouldn't know how to do that myself! And then, oh yeah, they were so generous as to give me an overdraft limit that I don't want and definitely don't need. Apparently, there's over 800,000 of us stuck in the same boat.

So, you're telling me those 800,000 people don't have anything else to worry about? I always assumed an overdraft only kicks in when you actually go into the red—like, say, you land an entry-level gig making $1,500 a month, but then you blow through $2,000 because you decided you deserved a nicer tracksuit and a few rounds of Manchester United at the Verizon lounges during happy hour.

Nathan Evans78 As I was saying:
Is nearly a third of the adult population really out there working dead-end, minimum-wage jobs? I highly doubt it. Didn't we just establish in that other thread about wages that even entry-level retail positions in places like Chicago are pulling in well over $2,000 a month? 🤔

So, we're looking at roughly $1,600—give or take depending on how the dollar is swinging that day. $3833 When we were talking about wages earlier, I made it pretty clear: if you're pulling in $2,500 a month as a single person, you’re barely keeping your head above water. Whether you're living in Washington, D.C. or down in Miami, that kind of money puts you right on the edge of needing social services just to get by. Now, imagine trying to stretch that same amount to cover a family of four—it’s an absolute disaster.
The absolute ideal candidates for a silent penalty.

Nathan Evans78 said:So, you're telling me those 800,000 people don't have anything else to worry about? I always assumed an overdraft only kicks in when you actually go into the red—like, say, you land an entry-level gig making $1,500 a month, but then you blow through $2,000 because you decided you deserved a nicer tracksuit and a few rounds of Manchester United at the Verizon lounges during happy hour.

I’m honestly worried the issue isn't about being in the red or whatever.

Real talk, the government is doing its usual thing—playing the victim and pointing fingers at blatant lawbreaking that they’re literally supposed to be in charge of policing.

It looks like someone finally told them they need to clean up their own damn mess before the whole system switches over to the new currency.

John Chase3 said:

Nathan Evans78 As I was saying:
Is nearly a third of the adult population really out there working dead-end, minimum-wage jobs? I highly doubt it. Didn't we just establish in that other thread about wages that even entry-level retail positions in places like Chicago are pulling in well over $2,000 a month? 🤔

So, we're looking at roughly $1,600—give or take depending on how the dollar is swinging that day. $3833 When we were talking about wages earlier, I made it pretty clear: if you're pulling in $2,500 a month as a single person, you’re barely keeping your head above water. Whether you're living in Washington, D.C. or down in Miami, that kind of money puts you right on the edge of needing social services just to get by. Now, imagine trying to stretch that same amount to cover a family of four—it’s an absolute disaster.
The absolute ideal candidates for a silent penalty.

To be honest, I feel like this number is a bit inflated, but I can see where your logic is coming from. That's exactly why I wanted to hear what everyone else thinks about this.

Nathan Evans78 said:So, you're telling me those 800,000 people don't have anything else to worry about? I always assumed an overdraft only kicks in when you actually go into the red—like, say, you land an entry-level gig making $1,500 a month, but then you blow through $2,000 because you decided you deserved a nicer tracksuit and a few rounds of Manchester United at the Verizon lounges during happy hour.

😁

Typical New York yuppies.

Nathan Evans78 said:Is there a group of you guys out there who just bolted and left all their bills unpaid or something? I honestly can't wrap my head around where those 800,000 entities came from.

I don't think so, because in my experience, they shut down my overdraft the second I stopped receiving a paycheck here in the States—it was pretty much instant, maybe after two months? I can't remember exactly. I'm not sure if the rules have changed lately, but as I understand it, if you aren't drawing an income in the US, you aren't getting credit from the Federal Reserve, and I assume it works the same way with all the other major banks. If that's the case, we're talking about 800,000 able-bodied, employed Americans plus retirees, veterans, and so on. And these are the ones deep in the red—so what about everyone else? Are they just slightly in the red? Is everybody in debt? How is this even possible?

Jerry Martinez6 said:I don't think so, because in my experience, they shut down my overdraft the second I stopped receiving a paycheck here in the States—it was pretty much instant, maybe after two months? I can't remember exactly. I'm not sure if the rules have changed lately, but as I understand it, if you aren't drawing an income in the US, you aren't getting credit from the Federal Reserve, and I assume it works the same way with all the other major banks. If that's the case, we're talking about 800,000 able-bodied, employed Americans plus retirees, veterans, and so on. And these are the ones deep in the red—so what about everyone else? Are they just slightly in the red? Is everybody in debt? How is this even possible?

It’s a never-ending cycle... you go under, you claw your way out, then you fall right back in. Over the last two years, I’ve swung from being $70k up to being $20k in the hole.