Banks / Credit Card Co. Scams

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Irish Gal

LoanSafe Member
Mar 24, 2008
I thought it might be good to start a thread where we can keep each other updated re ongoing banking / credit card scams on consumers, as they occur. We are seeing more and more how banks are trying to scam consumers more and more with bogus fees, and unfair practices in any ways they can (legally) in order to make up for lost profits due to their own risky/bad business decisions and practices. They continue to believe consumers are stupid and asleep and that we are not paying attention (like last time :eek:) to all their rip-off schemes that allow them to live the good life, while we are left ******** and unemployed :mad:. Well, guess what Mr./Ms. Banker? We're awake now ! And, we're watching you 24/7 - 365 ! Folks, watch your accounts like a hawk ! (Actually, if anyone is still "banking" w/ any of the big banking perpetrators, you might want to rethink going small, local :D. Shut the big boyz down please :D. There's no reason whatsoever why anyone needs to use the services of any U.S., unethical banks. So, I invite folks to post here, warn us, of any banking / credit cards abuses they learn of or experience personally. One by one, let's shut these bastardos down :D. We can do it. Really, we can. :D. The following is an article I saw today.


By Kathleen Reardon
Prof, USC Marshall School of Business, author of The Secret Handshake

April 25, 2009 HUFF POST

As one door is closed to them, unethical banks will surely find another. That's what I shared with my senators and representatives when writing to them today. I've been using banking cards for a very long time. And never has a bankcard allowed me to get money I did not have.

Well, those days are apparently over. My teen-aged son used his new card from his new bank account to withdraw money. When he accidentally attempted to withdraw more money than was in his checking account (but rather in his savings), the machine gave him money - and not just once. The bank then charged him over and over before letting him know that he was overdrawn.

My son and I visited the bank. Do you think they were willing to give him his money back or do a simple transfer of funds to rectify the situation? They told us it would nearly take "an act of God" to help us out because they have their rules and processes and customers need to keep up with the changes, including the role credit card companies now play at bank machines that are out of bank control. I asked her who received the penalty money. "We did," she said. "Then you're in the loop" I replied. "And you're responsible." I then explained that my family has rules and processes too that include a bank operating with integrity if they are going to retain our business.

My son was given half of his money back, but they are insisting upon keeping the rest. We'll see.

If I were you I'd watch my back. They're obviously now trying to get the money from the little guys in new ways - even teenagers -- money their fat cats absconded with both before and after the bailouts. My bet is that banks like this are hoping that a lot of people low on their luck will be overdrawing and that by letting them do so, they'll be able to put these people further into debt with penalties. Then there are elderly or infirm people who may not keep their own records and don't know which account has money.

It's a slick and sick move. People assume they won't be allowed to overdraw - that the machine will refuse to comply. And it's that assumption, common and reasonable, that allow some banks and credit card companies to quietly steal from their customers.

So when your son or daughter opens a bank account and they happily give him or her a card, be wary. And if you assume that your bank is going to stop you from accidentally overdrawing from the wrong account or one without the amount of money requested, think again. Your bank might be counting on that assumption. If so, they don't care if you're a kid, if you had money to cover it in their bank or that you've been a great customer. You lose. They win. So watch your back.


LoanSafe Member
Sep 19, 2008
A relative of mine has two checking and one savings account with Chase. She accidently withdrew off the wrong checking account thinking it was the other. At the time, that account didn't have enough money, but the other checking, and the savings account had very large balances. CHASE bank charged her $39 for this mistake. No warning, no overdraft transfer from the other account. SHE WILL NOT BE BANKING WITH CHASE, or any other megabank for that matter EVER AGAIN.

CHASE also keeps selling her automatic credit insurance, or absurd 'membership' schemes, travel BS rewards scams, on her credit card with zero balance. Twice, she has been duped by telemarketers into these schemes, and it takes numerous phone calls and weeks to reverse the fraudulent fees.

She will be moving ALL her banking to a local credit union.

The elderly are especially vulerable to mega bank tactics. They must be robbing billions from unsuspecting people in fees and ridiculous unnecessary scams.

I will be getting some money soon, (cash for keys) and I will not be depositing it with any of the mega banks. NEVER AGAIN.

Move all your money from the mega banks to local institutions such as credit unions. We must bring the mega banks down for destoying our lives. Just don't do business with them.

Irish Gal

LoanSafe Member
Mar 24, 2008
Due to the latest credit card legislation that clamps down (a little :mad:) on cc co's, they are now going after gauging customers re debit cards. What else is new?


By CATHERINE CURAN June 29, 2009

Just weeks after President Obama signed into law new rules clamping down on runaway credit card fees, banks are accelerating their push for plastic profits by making an end run around the restrictions -- that is, jacking up fees related to debit cards.

Earlier this month, Bank of America announced a $35 fee for most debit-card overdrafts -- plus a second $35 fee if it isn't repaid in five days. In March, PNC Bank hiked its sustained overdraft fee by 16 percent to $7 a day.

The moves by BofA and PNC follow inflated international fees set by Citigroup and a new, 2 percent foreign fee imposed by Discover Cards. These upticks not only deftly sidestep the new credit-card law -- which does not address debit cards -- but come at exactly the time the popularity of debit cards among American consumers surpasses that of credit cards.

"We've been watching these fees steadily going up," said Jean Ann Fox, director of financial services at the Consumer Federation of America. "And it stands to reason if the opportunity to gouge consumers with one product is being curtailed, banks will look for other opportunities."

In 2008, overdraft and non-sufficient funds fees ballooned to $34.7 billion, according to a new estimate by management advisory firm Bretton Woods. That's an outstanding 37 percent jump from the $25.3 billion in overdraft and NSF fees banks collected in 2006, a total pulled together by the Center for Responsible Lending.

At the center of the inflated overdraft debit-card fee issue is that banks now automatically enroll customers in their overdraft program. BofA, Citi, PNC and Discover are hardly alone. Five years ago, 80 percent of banks would decline an ATM or debit charge if the customer lacked the funds. But a scathing 2008 report from the FDIC, and a March 2009 Center for Responsible Lending study of 16 large banks show lenders are squeezing ever more revenue out of debit card users by:

* Enrolling consumers in overdraft plans without their consent, and not allowing them to opt out

* Charging higher initial fees on debit overdrafts. Citibank recently raised its fee to $34 from the $30 rate it had last August. The median maximum overdraft fee at big banks now totals a whopping $35

* Employing tiered fees. Eight major banks now use them, compared with just three in 2005. Fifth Third Bank charges $25 to $37 per overdraft, while US Bank hits consumers with $19 for the initial overdraft, then $35 for the next three, and $37.50 for subsequent charges

* Paying overdrafts at the banks' discretion, rather than chronologically, generating higher fees. Putting the bigger transactions first can drain an account, letting banks zap the consumer for each little debit for a hamburger or cup of coffee, racking up several hundred dollars in fees

* Putting few or no limits on the number of overdraft fees consumers are hit with on a given day.

The Federal Reserve and Congress are trying to play catch-up with the banks. A bill introduced by Rep. Carolyn Maloney [D-NY] would define the overdraft coverage as a loan, and force banks to get customers to opt-in before an overdraft can happen.

The Maloney bill would also bar banks from manipulating debits -- that is, clearing larger transactions first, thus raising the chance for multiple overdraft charges.
The American Bankers Association's Nessa Feddis dismissed the outcry, noting: "Overdraft fees are simple to avoid by keeping track of your account, or arranging with the bank to send alerts."

CW California

LoanSafe Member
Feb 26, 2009
This just pisses me off. Why not decline the damn debit card if the funds are not there to pay it?? As a merchant these banks charge us an awful lot to accept the debit cards. ( Not as high a percent but transaction fees where there should be very little risk hence very little fees.) When debit transactions first began Master card and Visa were getting nearly the same fees on those as compared to the credit cards. It wasn't until big retailers like Best Buy, etc. got involved in a class action suit that forced MC/Visa too change their fees. They were forced to lower fees because they had lower risk. Now they push their own risk up by letting the debits go and the consumers are going to pay for it in the cost of their goods. If the merchant gets charged rest assured we have to raise our prices to cover it. But here is the crappy thing. MC/Visa is cutting deals with those same big retailers to lower their costs but in the meantime they milk the small retailers for the higher fees. (This keeps it out of the courts.) I just moved my merchant account to a local bank from BofA. In fact, I downloaded the new account today (yea! for me) I didn't get hugely better rates but at least I am depriving BofA of making money off my business and I can't fight MC/Visa. Baby steps, baby steps. Educate, educate. People if you are going to use your debit use cash instead! Deprive MC/Visa of all this added raping that they continue to do to small businesses.