Capital One to drop overdraft fees for all retail banking customers

What is so difficult about not writing checks when you don't have money in bank to cover?

Many if not most banks will waive fees for odd OD now and then. What you often see is moaning from people and or their supporters who are consistently overdrawn once, twice, three times or more within a given quarter.

Many of these people treat bank accounts like check cashing stores. Money goes into account on payday, then is largely gone by end of next week leaving very low balances.

R1, that is about 50 percent of the US population. It’s not some shameful subset.

Overdraft fees are just a money grab by banks. If you write a check and don't have enough money to cover it, the bank should just decline paying the check.

I'm going to go out on a limb here and bet the ranch that R1 is a Trump loving Republican.

Republicans hate the social safety net, but not when that same net is used to protect multi-billion a year income businesses.

R1, why would this bother you so much? You seem a bit asshole-ish.

R1 outs himself as being over 700 billion years old with "writing checks."

Thank you r6. I immediately started laughing when I saw the reference to writing checks.

Anyway, if you know working class people struggling to make ends meet they often end up overdrafting their account. Punishing people with these fees just makes the situation worse for them. It's a bad practice of the banks making money off people who can least afford to part with it.

[quote]Overdraft fees are just a money grab by banks.

Banks collect over $30 BILLION dollars JUST from overdraft fees every year.

Banks often practice high to low posting, meaning that when a group of checks are presented they will cash the largest amount first to maximize overdraft fees.

"The report scrutinized the practices of 44 of the largest banks based on deposits. It found that half still reorder transactions from the largest amount to the smallest amount — known as “high to low” posting — rather than processing them either from the smallest to largest amount, or in chronological order. High-to-low posting tends to result in fees being applied to several smaller amounts, rather than one fee applied to a single, larger amount."

R6

You're an idiot. Capital One like every other bank charges (or charges) over draft fees for just that reason. Whenever an account goes negative for whatever reason. It fucking doesn't matter if that is due to check being presented, ATM withdrawal, or other debit.

For your information haven't written a paper check in decades. Everything is online....

As for rest of you woke incels there is no free lunch in business world. Capital One is giving up over one hundred million per year in revenue from this action, and that hit has already caused their stock to dip today on this bit of news.

Banks are in business to make money, if they don't like anything else will go out of business.

Devil is in details for this Capital One scheme and at first glance it isn't the giveaway many of you seem to believe. Yes, OD and NSF funds may be eliminated, but how this effects certain customers will roll out in various ways.

Capital One was clear in statements issued today that they will monitor customer accounts and make decisions accordingly. Meaning (again) if someone is rarely OD or has items returned (NSF) this new scheme won't make that much of a difference. OTOH those who are chronically over drawn for any reason likely will face review of their account which happens all the time. Usually a letter is sent advising gently advising customer to get their fiscal act in order. If and or when that does not work account will be terminated for cause and usually reported to Chex Systems.

[quote]These fees mainly affect low income people

Then they don't affect me!

R4

Why should a bank or any other business be forced to provide a "social safety net". Pa

Anyway we're talking about two separate matters here; Capital One bank says it will eliminate NSD and OD fees, fair enough. They did not say will automatically honor transactions that cause accounts to go negative.

If transaction is declined whoever imitated debit usually charges a fee for items returned for any reason. Thus people may find themselves paying a fee anyway.

Interesting I bet they accured a lot of revenue with overdraft fees. There has to be a catch? I cannot imagine the bank being ok with losing so much cash.

Banks want to make money off us any way they can (just like airlines have started to do). It’s all a money grab

Banks are also realizing that blockchain financial products are coming down the pike...fast. Regardless of what you think about decentralized finance, that whole realm is growing and is expected to explode in the next few years. Traditional consumer banking as we know it is dead meat. Watch.

R15

No, not exactly as linked article makes clear...

Read fine print from some of these places touted as already having eliminated or whatever NSF and OD fees. Often only certain transactions are covered, but not others.

Also as linked article makes clear eliminating fees is only half of things. Other question is what happens to transaction or transactions that cause account to go negative. Banks will accept but so much risk, and they aren't going to be giving interest free loans en masse to people by covering charges where funds are insufficient. So bank doesn't charge an OD/NSF fee, but returns payment to credit card, landlord, or other debtor instead. Customer now has to deal with likely not only fees from that end, but fact (depending upon what payment was made for), fact they may now be considered late.

Banks are scum and anyone defending them has a screw loose somewhere.