Paulie-Bagga-Donuts Bank Service?

Is allowing your banking customers to overdraw their accounts via ATM withdrawals - and then charging them overdraft fees akin to loan shark interest rates a value-added service or just a sleazy way to boost the Bank's service fee revenue?

As I read the following article in Crain's Chicago Business, I have to say I think it's primarily the latter...

ATM Withdrawl: Banks silently charging for overdrafts

While we should all be financially responsible, and not overdraw our accounts via ATMs or otherwise, in today's hectic world of direct deposit this and direct pay that, once in a while you can get caught with a low balance unknowingly - wouldn't you prefer to be made aware of that before Paulie starts charging you the heat?

Comments

[kim]

Update: I obtained a response from a rep at Washington Mutual about how they charge overdraft fees without warning them first. They were absolutely unapologetic about their business practices. The response was that it was the customer's responsibility to be aware of account balances.

Does this sound like a 'value-added customer service' to anyone out there?

[kim]

That's incredibly unethical and sneaky. I think eveyrbody should boycott the banks that follow these practices--including Harris, Fifth Third, Charter One, MidAmerica, Washington Mutual, and TCF--until they change to an honest approach.