Publication: ABA Banking Journal
Publication Date: 01-DEC-07
Delivery: Immediate Online Access
Author: Feddis, Nessa Eileen
Article Excerpt
[ILLUSTRATION OMITTED]
The evening news comes on and you see an engaging young soldier preparing for his fourth deployment to a war zone. He sits before the camera in uniform, with his wife and young children. He tells the viewer about his weekend in the countryside with his family before his next tour and a surprise from his bank upon his return. He has racked up over $1,000 in overdraft fees for about $350 in transactions, mostly small-dollar transactions for coffee, sandwiches, and similar items under $10.
The news report explains that customers are in the best position to know their balance, and that the bank cannot know about outstanding items, which appears to have been the case here. It is also notes that overdrafts are intended to encourage customers to keep track of their spending and balance.
Not reported is the fact that the bank likely waived most of the fees.
Mostly what the public hears is:
"A bank charged an American soldier beading back to a war zone over $1,000 in overdraft fees for $350 in transactions, mostly small-dollar items that the bank approved"
This is not a hypothetical example. In fact, it was an...
NOTE: All illustrations and photos have been removed from this article.
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