Saturday, September 12, 2009

In the News

When reading the news today, something ruffled my feathers:

"But because consumers use debit cards far more often than credit cards, a cascade of fees can be set off quickly, often for people who are least able to afford it. Some banks further increase their revenue by manipulating the order of a customer’s transactions in a way that causes more of them to incur overdraft fees."

This is from an article in the NY Times found here. I realize that the Tmes is pretty bent on making banks look bad right now, but honestly? If banks are really doing what is claimed above, that makes me sick. I don't know if any of you have had faced one of these charges, but they are like $30. So a bank could reorganize your charges so you have more charges past your limit and be charged $30 4 or 5 times. That bothers me. I realize that personal finance is an individual responsibility, and as a consumer you should be aware of your financial standing, but we all have times when we think a deposit has gone through and it hasn't.

Sorry for a whiny post, I was just appalled by this. In other news, IKEA is taking on Russia: when opening stores in Mother Russia the furniture giant was approached by power companies and informed that if they wanted to have electricity at their grand opening in Moscow they had to pay a bribe. IKEA abstained and brought in generators. They thought they were pretty clever until they realized that they were paying way too much for the generators because the employee that set up the contract was getting a kick back. Crap. Anyway, IKEA is setting up a case in an attempt to limit this corruption. Of course, some might debate that selling crappy furniture is corrupted.

What a happy world this is.

1 comment:

Roxy said...

Well, they can. It has happened to me. They will take the biggest transaction first like a $100 phone bill. Then you will get the $33 fee on the $5 bill at Taco Bell, and another on the $3 you spent at the post office... Sometimes if I notice it, I'll transfer money from savings temporarily and if I am lucky, it will clear while they are still pending. Plus if you tell them to add overdraft protection [It lets them transfer money from your saving or another account and you only have one $10 fee for the whole day, rather than the max of five overdrafts per day at $33 each.] you have no way of knowing if it is on there till you accidentally overdraft. They will only [usually] reverse the first fee as a courtesy but if you got 5 before you noticed, you are screwed.