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-- imagine buying something like a seven dollar lunch right in using a debit card.
Then finding out you were overdrawn and now be 42 dollar lunch bill because the banks slap on a 35 dollar overdraft fee.
And -- seven dollar tab.
Here to talk about this growing story -- banks are cashing in his.
At -- he is chairman of credit.
Dot com -- welcome back to the program thank you this is a growing problem people are familiar with this with with you know checks you write a bad check you know -- -- back -- the banks are cashing in on debit cards -- I'm Sony hate the other big story 128 million dollars and if you add in penalties billion with a B billion with a very.
You have -- bounced checks you're talking about 39 billion.
So that some is Everett Dirksen once that a billion here billion there after -- while you talk about some real money that that that is real money and of course it is.
-- -- -- -- It's hard argument right to get same time you need to watch your checkbook here if you know if you don't have for five bucks and -- shouldn't be paying for something cost ten dollars and I understand that.
But the same time you're you're really slap -- it to people.
That are clearly.
In no position to afford the 35 dollar overdraft -- Now let's say it's a tough position to be in Mostar about 35 right 39 actually -- returning near or above 35 the -- Some -- happy -- becomes a very unhappy meal.
When you get whacked with a 39 dollar penalty -- it certainly does and it's not.
Every there are a couple of banks out there that deserve some credit -- least they've yet to institute these.
I I think in the end they're all gonna do -- they have to do -- they're trying to make up things somewhere because of the credit card reforms so as a result of the debit card.
Is a perfect place to do it especially since now debit card usage has eclipsed credit card usage.
By not an insignificant number.
Who are some of the most egregious.
Violators of this they are they all they really it's just one of those things where you know I've never got to bank that McAfee didn't like.
Yeah now is it like -- check in that you keep.
Sometimes you know you bounce a check in the -- you might -- to get before you know you could have two and three charges on the same -- check.
Is that the same we -- debit card I don't think so I think was the one time was bad enough Alia and the and the problem is that they do it in ascending order supposed to.
-- -- -- -- -- Four little ones and a big -- what they have had a tendency to do is put the big went through first to make absolutely sure.
You're into penalty zone and then charge you penalties on the other 54.
As opposed to get forty bucks in the bank and you charged fifty dollars worth or debit.
Fifty dollars worth of purchases and three of them don't add up to forty -- would you cover those three right.
But let's say you have one for 42 dollars or whatever might be that goes -- -- so the other ones which theoretically could have cleared right will now not.
While they make you hear all four and five time that you're gonna get whacked with these charges yet in the institutions say they've they're doing it because they don't want to cause you embarrassment that can affect the only problem is that I don't know whether you'd rather be.
You know soaked -- -- -- I think listen I think most people would probably rather have that momentary embarrassment.
And maybe break out another -- -- pay cash they have it.
Yeah to go home and finally got a 130 dollars and access charges -- I became it really is and nightmarish situation it's a shocker but there are things that people can do -- they just have to like what what -- obviously don't overdrawn checking account.
We -- the first thing if you could actually asked them to turn off the overdraft feature.
-- your car will be rejected it will be -- -- suffer that made it a little bit of embarrassment but to protect yourself right.
Second thing is -- the question and others in your -- always say -- yourself if you have 5000 -- -- the bank you now 4000 dollars in the -- -- thousand there -- 500 -- -- -- you feel comfortable with.
This is going to be sort of your safe sound which you can ask.
Banks to turn off your overdraft feature you can you can and many of them and okay and that's great practical advice that's a good that's one there's another thing too is linked accounts -- -- you know have your.
The to a savings or brokerage and right so -- over here checking -- a -- to -- grab the money you've got it just not in this account when it's over here right.
-- the thing is set alerts lot of institutions now will actually give you alerts on mobile phone so you can actually set alerts for -- -- -- your account.
And the and the last thing which I think is the best which you should do anyway.
It's check your bank -- your credit accounts.
Five minutes every day online -- to make sure you understand every transaction you see.
Indeed put you face to face with the kind of scary reality of what's -- spending where and how close you're coming from one good solutions -- a growing problem set the alerts check your balances turn off the overdraft feature Adam great stuff.
Thank you very.
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