Payday Loans News Break:Overdraft charges test case rejected

Barrister Tom Brennan on Monday lost his legal battle in what he hoped would be a test case for the fairness of bank overdraft charges.

Quoted With Edits From: Barrister’s overdraft charges test case rejected (Financial Times)

Tom Brennan tried but was unsuccessful in his attempt to set precedence for consumer fairness when it comes to bank overdraft charges.

Fueling the Debate

Using an ATM may cause you to need payday loans if you are not careful

Bank overdraft fees, the charges which results from overdrawing your checking account have been fueling a hot debate everywhere as people argue that the banks need to be regulated. This comes in response to many outraged consumers who feel the banks are intent in trapping there customers into paying steep fee’s and penalties for small and seemingly forgivable mistakes.

The Big Question

The big question is whether this is simply the result of irresponsible financial management on the part of the customer or predatory practices on behalf of the banks. After all, customers wouldn’t be fined if their the accounts weren’t overdrawn. The process however, by which accounts are getting overdrawn is what is raising red flags among consumers and resulting in more of them taking out payday loans to cover the cost of possibly unnecessary overdraft fees.

For example, one customers online banking transaction failed to go through, leaving them with several overdraft charges before the mistake was brought to their attention. ATM fees also seem to be taking customers off guard. Banks are debiting accounts for costs up towards four dollars for using an ATM that belongs to a bank other than their own.

My Own Opinion

I would tend to agree with a little of both sides. If you choose to have a checking account you are obligated to maintain it. Falling outside of these terms is a failure on the customers part, but the customer can easily fix their mistake with the help of payday loans. That being said though, I think banks need to exercise a little more courtesy when it comes to things like overdrafts and ATM fees. If a customer bounces a check leaving them with a heap of overdraft fees, I don’t think tacking additional daily fees for each day the account is left with a negative balance is good customer service, nor is it helping the customer recover from their mistakes.

Hopefully the end to all this will see both the customer exercise greater financial responsibility and the bank more customer courtesy. If you find yourself in debt because of overdraft fees, you can apply for payday loans to get your account balance on the positive side again.