1) It’s our fault on not the banks. This is a fallacy. 70% of Americans no longer balance their check books, _because they don’t write checks_. They use their debit cards and pay for things online. We have cell phones and email, online banking and instant everything, but the banks manipulate the system in numerous ways, from the “float” (the time between when you deposit a check and when it shows up in your account) to reverse ordering your debits from largest to smallest, all to maximize their fee income. They also notify you about overdraft fees the old slow way, by regular mail, when they could be pinging your email or calling your cell phone, which could all be easily automated. They have the technology to stop robbing us.

2) Where to take your business instead of the thieving national banks. Small credit unions are good, as are community banks, but many larger credit unions are just as bad as the big banks. Also, if you really want to keep your current bank, just tell them to take you out of the overdraft protection program. I did that with my B of A account – I was overjoyed when it got refused when I was having breakfast with my son at a neighborhood restaurant. Confused the waitress, but it proved that you can make your account work in a reasonable way.

I filed a small claims action against Wells Fargo to get my overdraft fees back, and seven days later they called and said they were giving in – they paid everything, including the “sustained overdraft fees” they’d been charging me all week, AND the 47.50 court filing fee. It was exactly what would have happened if they had actually gone to court and the judge had found 100% in my favor.

The statute of limitations for small claims like these is a minimum of three years, depending on your state, so even if it’s been a while, if you have a record of it, file!

If you win, let me know and I’ll talk about it in my movie, Overdrawn!, coming this summer.

-Karney Hatch

You’re absolutely right that bouncing a check isn’t a responsible use of a bank account. My complaint is with banks that increase fees for bounced checks because they are trying to increase profits when their customers run into trouble like that. In the savings account case I mentioned at the top, I don’t think I was being irresponsible — I think I’d just chosen the wrong bank!

I still agree with your point, though. My tip to people is just not to let feeling badly about your finances cause you to ignore a bank trying to make your situation worse when you’re already having trouble. Better to give your business to a bank or credit union that charges below-average fees, or none at all.

Banks could do a better job of giving more leeway to those with long, responsible account histories. I’ve had an account with the same bank for nearly 20 years, I have direct deposit, and I’ve bounced all of about 10 checks in the time I’ve been with them, I’d think they’d be able to reduce or forego the fee on those rare occasions that I do lose track. Maybe it’s time I looked for something new.

I now use a credit union for personal accounts – they are very helpful, friendly, and most important – reasonable.

I’ve been paring down my credit cards for the same reason – unreasonable business models. I figure the businesses should cater to the customer, not the other way around.