Overdraft Protection

[longam]

Looking to change banks and it seems they all have a new way to make money. OP

Overdraft Protection has been around for some time and they even had a money reserve at one time, small fees were charged for each use, well not anymore. Now if you over draft they do a cash withdraw on a CC or set it up as a CC charge with interest.

Time to go back to money orders....

[Sailor Steve]

I had an accidental overdraft at my credit union and they slapped me with a $20 fee. When I explained that I put the money in to cover it just too late, and it was my own fault, they removed the fee anyway.

I love my credit union.

[krashkart]

Sailor Steve, I ask as a banking n00b:

Are credit unions preferable to the larger banks? I was getting slapped with a hidden teller's fee until I asked about it. It mysteriously disappeared right then and there.

[Sailor Steve]

I would have to say yes. There are banks that have learned the lesson and try to work with customers, but on the whole CUs have them beat.

My story: I was with a bank for years that treated me well. They got bought out by a larger regional bank, and things still went well. I started having financial difficulties and they worked with me to sort out the problems. Then they got bought out by a National bank and suddenly I couldn't survive at all. I would be right on the edge and budget myself so I had only a couple of dollars left until my next paycheck, accounting for one charge still outstanding. Then they would apply a fee of $3 or so for some transaction, and it would put me below my balance, and then I would get a $30 overdraft charge, and then the outstanding charge would bounce because I suddenly no longer had enough in the account, and I would get another $30 overdraft charge.

I figure they took more than two thousand dollars out of my account over ten years or so before I finally saw the light.

I have a friend who got a serious overdraft charge from his bank because they moved some of his money from his checking to his savings, right as he made a big purchase.

And he's a millionaire. Took months before they finally admitted it was their fault.

I don't know about all of them, but I love my credit union.

[krashkart]

That account (no pun intended) reminds me of a similar chain-reaction overdraft scenario that plagued me for months. Took a long time to finally dig my way out of it. At any rate, I've thought about switching to a CU as I have heard that they have better reputations. Thought I would ask here for an umpteenth second opinion. Thanks for your response, Steve, I appreciate it.

[Sailor Steve]

I can't give any guarantees, but my current story is typical of the ones I heard that led me to switch. I screwed up, I admit it, they say "Oh, it was only a couple of dollars. If you bring it current now, we can drop that fee."

Did I say...? Yeah, I guess I did.