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

mistybadger2 said:The guy spelled it out perfectly. Most banks set everyone's limit to zero and swapped the permitted amount for whatever was considered the standard limit back before the decision at end of 2017.
Basically, they pulled the same shady stunt on everyone.
The few people who caught onto the game—the minority—negotiated a legitimate permitted overdraft. Everyone else is stuck dealing with the unpermitted mess.
Most people didn't realize that behind all this jargon, they were essentially getting fleeced for an extra 30%.
Meanwhile, that snake of a Governor has been smirking about it for four years.
You really have to watch out for these banking bottom-feeders. Given how easily Americans can be misled and the sheer corruption in our government, these guys have found themselves a gold mine that most criminals could only dream of.

First off, last night there was a paid fluff piece claiming the Federal Reserve "recommended" that banks stop screwing people over and offer meal-plan style repayments instead of freezing accounts (an anonymous article, obviously). Then today, we get another piece about how "Secretary Mnuchin reacted and announced new legislation," tucked right behind a paywall. And then you have Mr. "I shouldn't get involved" showing up here; I guess he has to justify that massive salary, even if it means listening to some kid from the sticks for half an hour. It’s easy enough to do what you're told when there's money in it.

First of all, we really are a colony, and second, we are a damn pathetic colony. It's an understatement to say they wouldn't act like this back home. I'll end up like those crazy people across America, shouting "End the Fed" -> "End the Federal Reserve." 😁
And Mnuchin... man, how can you be such a naive sucker?

mistybadger2 said:The guy spelled it out perfectly. Most banks set everyone's limit to zero and swapped the permitted amount for whatever was considered the standard limit back before the decision at end of 2017.
Basically, they pulled the same shady stunt on everyone.
The few people who caught onto the game—the minority—negotiated a legitimate permitted overdraft. Everyone else is stuck dealing with the unpermitted mess.
Most people didn't realize that behind all this jargon, they were essentially getting fleeced for an extra 30%.
Meanwhile, that snake of a Governor has been smirking about it for four years.
You really have to watch out for these banking bottom-feeders. Given how easily Americans can be misled and the sheer corruption in our government, these guys have found themselves a gold mine that most criminals could only dream of.

So you're telling me... if I have the exact same amount of debt as last month when I was still within my PERMITTED limits, I suddenly wake up next month and find myself in the SILENCED zone?
And with a way higher interest rate too?
All without getting a single written notice or anything?

Michelle Bennett5 said:So you're telling me... if I have the exact same amount of debt as last month when I was still within my PERMITTED limits, I suddenly wake up next month and find myself in the SILENCED zone?
And with a way higher interest rate too?
All without getting a single written notice or anything?

Yep—basically, unless you actually walked into the bank to sign an agreement for an authorized overdraft, thanks to the Federal Reserve's decision at end of 2017, you just automatically get dumped into the silent zone with much steeper interest rates.

And then you've got Vujčić over there lecturing us about how much we need to switch over to the Euro.

Michelle Bennett5 said:So you're telling me... if I have the exact same amount of debt as last month when I was still within my PERMITTED limits, I suddenly wake up next month and find myself in the SILENCED zone?
And with a way higher interest rate too?
All without getting a single written notice or anything?

Yeah. Pretty sure there was some tiny little notification about it. It popped up as an alert on my Chase app, I think.
But it was buried under so much fine print that I didn't even blink. Honestly, most people probably miss it too, given how many folks are dealing with that silenced overdraft status right now.

Michelle Bennett5 said:So you're telling me... if I have the exact same amount of debt as last month when I was still within my PERMITTED limits, I suddenly wake up next month and find myself in the SILENCED zone?
And with a way higher interest rate too?
All without getting a single written notice or anything?

Your interest rate probably didn't actually go up.
The thing is, the rate on an authorized overdraft was already at the legal maximum—say, around 8.11%, though I don't feel like digging through old records to find the exact historical cap.
Then the Federal Reserve ruled that all those extra fees had to be bundled into that single interest rate, including the basic account maintenance fees (which you pay whether you're overdrawn or not).

So, the banks basically "killed off" the authorized overdrafts and just moved everyone into the SILENCED category for the same amount, keeping the nominal rate at 8.11%. A few shady outfits might have jacked up the rates, but I doubt any of the top five big banks did.
Now, if you want to get technical and count the account maintenance fee as part of the EX, then sure, the effective rate could look higher. But realistically, the interest you're paying on your negative balance stays right around 8.11%.

And then, naturally, the Federal Reserve acted all surprised and offended that the banks outsmarted them, so now they're pushing for legislative changes so that a SILENCED overdraft can hit a max of $500 and last for up to 3 months.

It applies to everyone who’s working, presumably from their very first paycheck. But honestly, people are just so uninformed; they don't grasp the nuances of how this works. They see an overdraft and probably feel resentful toward the bank for "giving" them that credit in the first place.

The Bloomberg governor is basically coddling the banks. It’s honestly pathetic how soft they are.

When banks have friends like that, their clients definitely don't need any more enemies.

The Federal Reserve just weighed in on those rumors about overdraft limits being slashed, clearing up the confusion

After yesterday’s media frenzy claiming banks were suddenly canceling everyone's overdraft protection en masse, the Federal Reserve stepped in to demand an explanation from major lenders regarding these supposed crackdowns.

"Every bank that offers automatic overdraft coverage has informed us that they haven't started—nor are they currently engaged in—any mass cancellations of consumer overdraft privileges linked to recent regulatory updates from the Federal Reserve. Furthermore, there are no widespread reductions in approved overdraft limits $0.50 tied to this initiative, nor are banks calling up customers to demand immediate repayment of existing balances," the Federal Reserve stated today.

They emphasized that reports of banks aggressively cutting back on overdraft protections or slashing available credit lines on $0.50 are simply unfounded.

"Because of this, our citizens aren't facing some massive debt crisis triggered by sudden shifts in how banks handle overdrafts," the Federal Reserve noted.

It feels like the last time the independent press tries to pull a fast one on me; I'm officially done believing their spin!

Are we looking at any class action lawsuits here? A 30% hit is no joke...

Dennis Allen said:It feels like the last time the independent press tries to pull a fast one on me; I'm officially done believing their spin!

The New York Times, actually, I think they were the first ones to break this story, while everyone else just swarmed it like flies on a trash can—reposting without doing any actual fact-checking. It just goes to show that even those mainstream, establishment outlets can completely lose the plot. ☕

Ronald Howard3 said:How has the American financial regulator failed to notice that 90% of account overdrafts are sitting in some gray area with insane interest rates for four whole years?! It’s just like how nobody flagged the massive issues at Walmart until it was "post festum" and everyone claimed they "knew all along."☕

Just a total circus in the middle of the European Union. God, Americans... such sheep.

The sole reason I haven't set up an installment plan yet is because my bank flat-out REFUSED to let me do it without opening up a line of credit first. Basically, if you want to pay in installments, they force you to have an overdraft protection enabled.
Then you check your balance on the mobile app and it shows you have "available" $5000 funds, when in reality, you're actually sitting at zero.

melloweagle28 said:The sole reason I haven't set up an installment plan yet is because my bank flat-out REFUSED to let me do it without opening up a line of credit first. Basically, if you want to pay in installments, they force you to have an overdraft protection enabled.
Then you check your balance on the mobile app and it shows you have "available" $5000 funds, when in reality, you're actually sitting at zero.

If I remember right, the teller offered me a "basic" debit card versus some pricier one that allowed installments. She didn't even mention the overdraft part in that context. Since I didn't need the fancy stuff, I spent about two minutes arguing with her—just kept insisting I wanted the simplest card possible. I think I had to repeat myself like five times before she finally got it.

Honestly, they’re just selling you a pig in a poke. They bundle everything together, even though installment plans shouldn't have anything to do with being granted an overdraft, especially a silent one. And this little troublemaker Vujcic has been tolerating it for years—actually, she's probably encouraging it with her decisions.

I actually think that's what caused that ATM glitch one Sunday. On the first transaction that got declined, it listed "Installment Payment" for $0.00 and showed my remaining balance as $0.00....

Of course, if you go down to the branch, they've got these massive A4 booklets, like 3 inches thick, labeled "Fee Schedule," where everything is neatly laid out for you.

Best move? Don't deal with them at all. They charge me just to "hold" my own money and then screw me over just to pad their own pockets. Thanks to this "Wild West" country where everything falls apart except the banks.

Jack Cook7 said:If I remember right, the teller offered me a "basic" debit card versus some pricier one that allowed installments. She didn't even mention the overdraft part in that context. Since I didn't need the fancy stuff, I spent about two minutes arguing with her—just kept insisting I wanted the simplest card possible. I think I had to repeat myself like five times before she finally got it.

Honestly, they’re just selling you a pig in a poke. They bundle everything together, even though installment plans shouldn't have anything to do with being granted an overdraft, especially a silent one. And this little troublemaker Vujcic has been tolerating it for years—actually, she's probably encouraging it with her decisions.

I actually think that's what caused that ATM glitch one Sunday. On the first transaction that got declined, it listed "Installment Payment" for $0.00 and showed my remaining balance as $0.00....

Of course, if you go down to the branch, they've got these massive A4 booklets, like 3 inches thick, labeled "Fee Schedule," where everything is neatly laid out for you.

Best move? Don't deal with them at all. They charge me just to "hold" my own money and then screw me over just to pad their own pockets. Thanks to this "Wild West" country where everything falls apart except the banks.

I honestly don't know how other banks handle things.

But I figured I’d just get it sorted now so it's ready when I actually need it. That happened twice. We're talking about Chase here. So, I brought in my employer verification or whatever document was required to activate installment payments on the Visa card linked to my existing checking account. The tellers told me they'd approve an overdraft for me. I told them no, I don't want an overdraft. Then they claim that if I don't take the overdraft, I can't have the installment plan either.

melloweagle28 said:I honestly don't know how other banks handle things.

But I figured I’d just get it sorted now so it's ready when I actually need it. That happened twice. We're talking about Chase here. So, I brought in my employer verification or whatever document was required to activate installment payments on the Visa card linked to my existing checking account. The tellers told me they'd approve an overdraft for me. I told them no, I don't want an overdraft. Then they claim that if I don't take the overdraft, I can't have the installment plan either.

Chase again. Honestly, my blood pressure spikes every single time I have to step up to a teller window, use an ATM, or heaven forbid, call customer support like I had to the other day. At this rate, I’m gonna start recording every single conversation I have with them, just like they record everything we say.

melloweagle28 said:I honestly don't know how other banks handle things.

But I figured I’d just get it sorted now so it's ready when I actually need it. That happened twice. We're talking about Chase here. So, I brought in my employer verification or whatever document was required to activate installment payments on the Visa card linked to my existing checking account. The tellers told me they'd approve an overdraft for me. I told them no, I don't want an overdraft. Then they claim that if I don't take the overdraft, I can't have the installment plan either.

Installment plans are a total scam. You never truly know how much debt you're actually drowning in or what you actually have left to spend.

If you ask me, the smartest move is just hitting the ATM, grabbing Cash, and paying the full amount upfront. If a vendor is running a real business, they might even give you a discount for paying in full. That’s where the actual savings happen.

You really have to force yourself into a position where you actually have the funds available. Paying high interest rates is a massive waste compared to just building up a decent pile of cash.

All this stuff—installments, loans, overdrafts, interest—it’s just a way to bleed you dry.
Every system loves having a working class to exploit—a helpless mass with nothing to their name, capable of nothing but working themselves to death for the people who own the means of production.

This whole thing is such a joke! I was just looking over my bank statements out of pure curiosity, and it turns out since October 1st, 2021, my deficit has ballooned from $25,800 to $27,300 🤣

Michelle Bennett5 said:Installment plans are a total scam. You never truly know how much debt you're actually drowning in or what you actually have left to spend.

If you ask me, the smartest move is just hitting the ATM, grabbing Cash, and paying the full amount upfront. If a vendor is running a real business, they might even give you a discount for paying in full. That’s where the actual savings happen.

You really have to force yourself into a position where you actually have the funds available. Paying high interest rates is a massive waste compared to just building up a decent pile of cash.

All this stuff—installments, loans, overdrafts, interest—it’s just a way to bleed you dry.
Every system loves having a working class to exploit—a helpless mass with nothing to their name, capable of nothing but working themselves to death for the people who own the means of production.

I absolutely disagree. I am the complete opposite. I avoid any merchant that doesn't take credit cards whenever possible. To me, using Cash is nothing more than a necessary evil, and supposedly a fantastic carrier for germs, cocaine, and urine.🙂

I despise installment plans, and while I haven't needed them yet, it's unrealistic to assume I'll always be in a position to avoid them. When money runs short, an installment plan is effectively an interest-free loan.

melloweagle28 said:I absolutely disagree. I am the complete opposite. I avoid any merchant that doesn't take credit cards whenever possible. To me, using Cash is nothing more than a necessary evil, and supposedly a fantastic carrier for germs, cocaine, and urine.🙂

I despise installment plans, and while I haven't needed them yet, it's unrealistic to assume I'll always be in a position to avoid them. When money runs short, an installment plan is effectively an interest-free loan.

Hey, newsflash: banks charge a FEE for every swipe through a card reader.
Around 2-3%.

Supposedly, that fee comes out of the merchant's pocket, right?
BUT!!!!!
The seller obviously just builds that cost right into the price tag, so you're actually the one footing the bill!

And like I said, those "interest-free" installments aren't really free—all those extra costs are baked into the monthly payment from day one.

Paying with straight-up Cash is the only way to get the actual lowest price.
(Not that the big banks and their little minions will ever admit that.)

Just so we're clear, if you want to avoid confusion about using Cash, getting an official receipt is 100% fine.