Banks Gone Wild

A similar thing happened to me about a month ago. My husband and I have three accounts with our bank, two personal and one business. I've have a relationship with our bank for over ten years, and during that time none of the accounts I've managed had ever gone into the red. With a longtime track record of being a model customer, I was therefore very upset when the bank chose to penalize me when a snafu occurred.

One of our checks was accidentally deposited into the wrong account, which caused it to go overdrawn when checks we had written cleared. Even though we had more than enough money to cover the checks over the three accounts we had with the bank, the bank decided to return three checks, which, if they had cleared would have created an overdraft of less than $250. The bank then charged us $36 per check for the privilege of refusing to honor them. In addition, we faced check return and late payment fees from our car insurance, phone and credit card companies because of the bank's actions.

I was particularly upset that the bank hadn't bothered to call me (which they did regularly to confirm other transactions), or taken my highly responsible banking record into account before they decided to bounce the checks. Had they called, the situation could have been resolved instantly with a transfer between accounts. Instead, it seems to me, the bank saw an opportunity to make a quick buck ($108 actually) and took it, charging me fees, and putting my good credit, and car insurance policy, at risk in the process.

My initial complaints fell on officious and intransigent ears. The bank refused to refund the charges, insisting that they "couldn't" rather then "wouldn't" do it. Luckily for me, they'd erroneously mailed someone else's overdraft notice in the same envelope as mine, so with this as leverage, I agreed to do the right thing and hand over "John Doe's" letter on condition that the bank did the right thing and rescinded my fees.

But the episode left a very bitter taste in my mouth, and got me thinking about those less fortunate than myself, for whom the system is particularly unfair. Just one of the three fees the bank had taken from my account, without my permission, was the equivalent to the best part of a day's pay for someone on minimum wage. Put the three together and it's well over half a week's salary for the hard working poor. How can that be fair?

With such sharp practices these banks are no better than loan sharks. And with the economy in crisis, such money generating policies are likely to increase as the banks desperately try to claw back the funds they've been forced to write off due to the mortgage fiasco we're in the midst of right now. Once again the consumer is paying (dearly) for the mistakes fat cat, big business has made.

So what can we do? Certainly it's all our responsibilities to refuse to take such treatment lying down. The banks are only able to charge such outrageous fees because on some level we allow them to get away with it. Next time you get an unfair charge, call the bank on it. You may be able to afford to eat it, but the person standing in line behind you might not, and, as a society, we stand or fall together. If one employee refuses to help, refuse to be brushed off. Ask to see their superior, and if they can't help, ask to see theirs. Threaten to close your account down and take your business elsewhere, and DO IT if they fail to offer an acceptable resolution.

If all else fails, take a leaf out of Hatch's playbook, and take your bank to small claims court. As Ralph Nader says, "If a million consumers filed a million small claims court actions a year against the banks, the banks would either try to abolish the small claims court or try to improve their performance." Perhaps it's our responsibility to put that theory to the test. Once we've knocked the banks into shape, my next raison d'être will be local councils and the parking fines they charge. Try paying those on a minimum wage!