tag:blogger.com,1999:blog-3889388775673754833.post8218158606469840004..comments2024-02-24T03:34:18.060-05:00Comments on Stealing Commas: From a purely financial standpoint, overdraft fees make no sense.chris the cynichttp://www.blogger.com/profile/06872875475212333027noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3889388775673754833.post-19105030144344438452016-11-03T15:34:59.091-04:002016-11-03T15:34:59.091-04:00Well in the particular recent case it's a cred...Well in the particular recent case it's a credit union where the customers who are facing these fees have no other options, so I doubt customer retention bothers them much? <br /><br />The accounts themselves don't have fees, so they're a great deal for anyone who is able to avoid spending money they don't have more than twice a year or so.<br /><br />The other huge advantage is they let the payment go thru without bouncing, so you don't face jail on top of the horrific money problems.Lonesparkhttps://www.blogger.com/profile/16278753827545905559noreply@blogger.comtag:blogger.com,1999:blog-3889388775673754833.post-63081658919397746592016-11-02T05:31:03.809-04:002016-11-02T05:31:03.809-04:00Gah, that percent sign should obviously be a dolla...Gah, that percent sign should obviously be a dollar sign.Rhoadanhttps://www.blogger.com/profile/02375561352677522227noreply@blogger.comtag:blogger.com,1999:blog-3889388775673754833.post-32912467171955795042016-11-02T05:29:40.563-04:002016-11-02T05:29:40.563-04:00Those fees don't make much sense from a custom...Those fees don't make much sense from a customer retention standpoint either. Though I suppose that anyone who overdraws their account with any regularity is someone they don't want as a customer. The thing that gets me is that apparently even credit unions charge absurd overdraft fees, though they do seem to be smaller than what banks charge. I decided long ago that it's more about punishing the depositor than it is about anything sensible. <br /><br />I think it's perfectly reasonable for banks to charge a fee to cover the cost of processing an overdraft, but with increasing automation, I'd think that those costs have, if anything, gone down, and the fees rather emphatically haven't. Furthermore, I suspect that they probably weren't high enough to justify a %35.00 charge to being with, so that's clearly not why they do it. <br /><br />Do you know if anyone's ever studied how much of a drag on the economy those fees are? Because I bet it's not insignificant. Rhoadanhttps://www.blogger.com/profile/02375561352677522227noreply@blogger.com