$17.5 BILLION worth!!
In this morning's Washington Independent, my colleague Mike Lillis writes about the fierce battle the banks are waging to stave off any reduction in their cash cow -- overdraft fees.
These are the banks that working people had to bail out with TARP money...
"It happens all the time. A thirsty consumer grabs a cup of coffee with a debit card, unknowingly exceeds the available balance, and gets smacked with a $30 fee for the $3 purchase."
Actually I think Mike's understating things a bit.
I went to the ATM to check my balance, saw that I had $16 or so in AVAILABLE
funds in this account. Then I stopped at Wendy's. It turns out the $16. was there, but it somehow it officially really wasn't. It turns out that I has unwittingly opted in to some bogus shoppping club when I ordered something online - and they had dibbs on my dough.
The overdraft fees at M&T Bank are more like $32.50. And, as everyone knows, it sets off a cascade of other fees, and before you know it you're at a $140 hamburger...
Also, pity the poor immigrant worker who has no checking account. All the banks charge at least a $5 fee to cash THEIR OWN CHECKS - because you haven't got an account there.
If ever there was an issue for people to contact their reps about this is it!