Don't be a victim of pricey bank fees.

The payday cash loan industry is a good example of a situation in which a few bad apples spoiled the whole bunch. Politicians and news media only pay attention when people complain. That means the few borrowers who had a bad experience with payday loans have gotten a lot of attention. No one hears about my friend Luke, who avoided hundreds of dollars in bank fees, or my friend Sara who avoided a $100 NSF fee.

Payday cash loans can be a huge help for people who use them correctly. Payday loan lenders’ fees are less expensive than most bank fees, cheaper than letting your car sit in a tow yard or impound lot. It’s when people borrow more money than they can afford to pay back or don’t plan the timeline of their loans right that trouble happens.

Save money, don’t waste it

Personal Money Store has contact with payday cash lenders all over the country, and we will find the best payday lender for you. Different lenders charge different rates, but the average cost in the U.S. is about $15 per $100. So, if your  bank is going to charge you $35 for every charge when and after you exceed your account balance, you will save money by getting a payday loan.

I used to have a landlord who charged $25 per day for every day that rent was late. Payday cash loans definitely saved me money when my paycheck came a few days after rent was due. If you’ve ever gotten your car towed, you know how much those places charge to get your car back — and the ridiculous amounts they charge for each day you leave it there. These are all good examples of how payday cash loans can save you money. When you don’t have cash just lying around and you get into a bind, payday cash loans can keep it from being worse than it has to be.

Getting an online payday cash loan

Personal Money Store can connect you with a lender who will approve your loan online and electronically transfer your cash into your account. Most lenders will get your cash to you in just a couple of hours. There’s no credit check, so you don’t need to worry about a flawed credit rating standing in the way of you getting the help you need.

Your lender will charge a one-time fee that’s due when your payday loan is due. Payday cash loans generally have terms of about two weeks, so be careful when you set the date to pay back your loan. It’s very important that you have enough cash to pay off your full loan and your lender’s fees on the due date.

Get your payday cash loan quick

You can apply right now for a payday cash loan and get approved in just a few minutes. Don’t let any more time go by without getting the financial stability you need now.

To start the application process, just fill in your information below and click APPLY NOW.

Wallet, meet overdraft fees

Payday loans in Ohio have weathered the storm of House Bill 545. This we know.  But let’s take a closer look at what opponents of payday loans are concerned about. An editorial by Marc Kovac of Dix Communications, a media conglomerate that no doubt has interest in the banking industry, should shed some light on the matter.

Governor Strickland has voiced concern that if lenders are using Ohio’s Small Loan Act to lend at the same rates as before, they may be violating the new law of House Bill 545. So what he’s saying is that the pay day loan companies left in Ohio may be breaking the law by following the law. Not only is that not the problem of the lenders, but it should be noted that lenders are working within applicable laws. They are cooperating with state government.

Payday lenders cooperate, adapt

Payday loans have adapted to existing laws. When House Bill 545 placed an oppressive 28 percent annual interest cap on short-term consumer loans, stores closed and hard-working individuals lost their jobs. None of this was necessary. Those against HB 545 predicted that the bill would put 6,000 Ohioans out of work. Much of that fear was recognized once the bill passed. Over 500 stores closed, according to Ohio Department of Commerce Legislative Director Ernie Davis.

According to Kovac, State Attorney General Richard Cordray identified the usage of the Small Loans Act as a “loophole.” Here’s how he put it:

… I believe that none of you realized that the language you drafted in the legislation left a loophole in Ohio law … to continue gouging consumers through exorbitant fees… some lenders are still charging fees and interest on small loans that may add up to an annual percentage rate of in excess of 300 percent. This is substantially equivalent to the fees charged by payday lenders under their previous business model.

Banks want overdraft fees, not payday loans

It is equivalent, yes. Of course, the 300-plus percent APR is irrelevant. It amounts to political chicanery on Cordray’s part, as payday loans are two-week loans that charge 15 to 25 percent of principal as the loan fee. Now, under the Small Loan Act, opponents are also crying about the check-cashing fee lenders in the state are charging if customers want to cash their checks there. Yet this still falls under the “equivalent fees” Cordray is braying about.

If Dix Communication indeed shares the same interest banks have in attempting to ban payday loans, what would that rather large interest be? Without a doubt, banks want customers to rely upon their equivalent product, overdraft protection. It is MUCH more expensive than using payday loans for emergency cash. Banks want your money however they can get it. Why not use a less expensive product when you’re in a jam. Use payday loans.

An overdraft primer

Historically, if a consumer attempted a transaction that would overdraw his or her checking account, their bank used its discretion to determine whether to pay the overdraft. If paid, the bank charged a significant fee for the service. In recent years, many banks and credit unions have automated the overdraft process. Coverage varies by institution; consumers who meet criteria are automatically enrolled.

In the past, overdrafts generally covered only check transactions. Today, ATM withdrawals, automated clearinghouse (ACH) transactions, point-of-sale debit card transactions, preauthorized automatic debits, telephone fund transfers and online banking transactions are also covered. Institutions typically charge a flat fee for each overdraft, regardless of the amount of the overdraft. A daily fee also may apply for each day the account remains overdrawn. This simply isn’t the case with an entirely straightforward payday loans.

Federal Reserve Board, OTS and NCUA say “no”

In a May 2008 proposal, the Board, Office of Thrift Supervision and National Credit Union Association proposed to adopt rules prohibiting unfair overdraft practices. One provision would prohibit consumers from being charged for overdraft protection unless they’re given notice and a reasonable opportunity to opt out of the service, and the consumer does not opt out.

The agencies also proposed to prohibit assessing an overdraft fee where the overdraft would not have occurred but for a hold placed on funds that exceeds the actual purchase or transaction amount.

New rules aren’t in place yet, but give it time

All banks will eventually be required to provide its customers with the right to opt out of the overdraft protection as incurred from ATM withdrawals and one-time debit card transactions. The Board is also proposing that banks obtain a consumer’s consent (opt-in) before overdraft protection could go into effect for ATM withdrawals in the first place.

Balance disclosure and transaction clearing

The fashion in which banks and credit unions disclose balance is also under investigation by the agencies. They noted that consumers could be misled by balance disclosures that include additional funds that a bank may provide to cover an overdraft.

Transaction clearing practices will also have to be made entirely more clear to consumers, as financial institutions often processed transactions not in the order that they occur, but “stack” them so that larger ones will hit first, even if they occur much later than smaller deductions. This creates a situation where customers are paying overdraft fees for even the smallest transactions.

If you’re short, DON’T overdraft

No fax payday loans are easy to understand, upfront about terms and fees and less expensive than overdraft protection. During a busy holiday shopping season, using overdraft protection like a safety net can be dangerous for your budget indeed. Be smart, know your budget and look to payday loans to fill your budget holes with just enough to get you through until your next payday.

Related articles

• The cost of banking
• U.S. Seeks New Curbs on Credit-Card Practices
• Are Reward Checking Accounts Worth It?

Yet simple, fact-based (rather than anecdotal) evidence tends to cut to the heart of the matter. Recent studies by Answers, etc., a company that has developed check-cashing and payday advance software for the consumer financial services industry since 1989, presents clear information about payday loans. Their research over the past few years indicate that payday loan costs, the standard customer profile and how the consumer loan products are regulated fall far from the media’s unstudied portrayal.

What do payday loans cost in relation to typical alternatives?

Answer, Etc’s findings indicate that on average, payday loan fees are 2.3 times less expensive than checking overdraft charges. An even greater discrepancy exists when late charges and utility reconnect fees are considered. Banks and credit unions are fond of citing the near 400 percent APR that accompanies a no fax payday loan, but this is misleading. First of all, no payday loan is a 12-month loan; typically they are to be repaid in two weeks. Furthermore, payday loan opponents deliberately neglect to mention that the APR game definitely doesn’t play favorably upon their argument, as you’ll see. These are average examples; frequently the other numbers can make payday loans look like even more of a bargain:

• $100 payday advance – $15 fee, 391 percent APR
• $100 checking overdraft protection – $30 fee, 782 percent APR
• $100 credit card bill with late fee – $29 fee, 756 percent APR
• $100 bill, fee for late/disconnected utility bill – $50 fee, 1,304 percent APR
• $100 bounced check/NSF – $25 fee, 652 percent APR

Interestingly, banks and credit unions are exempted from disclosing their fees for overdraft protection and NSF charges as an APR. Perhaps the above information casts a harsh light on the reason why.

How much do THEIR fees cost?

• Consumers will pay $4.2 billion in ATM service charges in 2006 to withdraw their own money (Bankrate.com Fall 2006 Survey)
• Consumers pay an estimated $22 billion in NSF fees to banks and credit unions (”Contrasting Payday Loans to Bounced Check Fees,” Consumer Credit Research Foundation, Thomas E. Lehman, Ph.D., 2005)
• Banks collect an estimated $10.3 billion annually for overdraft protection services (”Overdraft Fees Can Overwhelm,” Washington Post, June 26, 2005)
• In 2000, consumers paid credit card interest of more than $87 billion (Public Interest Research Group, 2002)
• An estimated $57 billion in late bill payment fees were collected by businesses in 2003, more than 140 percent of the total estimated payday lending volume in the United States (”Sizing NSF-Related Fees,” BAI Banking Strategies Magazine, Bill Stoneman, January-February, 2005)
• Credit card late fee penalties totaled over $11 billion in 2005 (CreditCards.com, November 2006)

Payday loans are regulated to best serve consumers

The “cycle of debt” that the media attributes to payday loans is quite often an impossibility, as few or no loan rollovers are typically allowed. Here are recent restrictions states place on the industry. Any that have changed have only become more strict. They remain among the lowest rates in the country for consumer loans:

• Arizona: 15 percent max fee; $500 max loan; three rollovers
• California 15 percent max fee; $300 max loan; no rollovers
• Colorado: 20 percent max fee on first $300, 7.5 percent on next $200; $500 max loan; one rollover
• Kansas: 15 percent max fee; $500 max loan; no rollovers
• Missouri: 75 percent of loan amount Max Fee; $500 max loan; Up to 6 rollovers;
• Nebraska: 15% Max Fee; $500 max loan; No rollovers;
• Nevada: No Limit; 25% of gross income max loan; None beyond 60 days for original due date;
• Oklahoma: 15% Max Fee up to $300, 10% above $300; $500 max loan, No rollovers
• Oregon: No Limit; Subject to net income max loan; 3 rollovers
• Washington: 15% on the first $500, 10% to $700 max fee; $700 max loan loaned; No rollover.

Portrait of a payday loan customer

• The average payday advance customers earn $40,000 annually
• 68 percent are under 45 years old; only four percent are over 65, compared to 20 percent of the population
• 94 percent have a high school diploma or better, while 58 percent have some college and 19 percent have a college degree
• 41 percent percent own their own homes
• 85 percent have access to other credit, including savings accounts
• 77 percent of the customers were satisfied with their experience
• 92 percent of customers think payday lenders offer a valuable service
• 90 percent of customer are satisfied with their understanding of the terms and conditions of the loan
• 100% have steady incomes and active checking accounts, both of which are required to receive payday loans

(Sources: The Credit Research Center, McDonough School of Business, Georgetown University, Gregory Elliehausen and Edward C. Lawrence; “Payday Advance Credit in America: An Analysis of Customer Demand,” April 2001; Cypress Research Group, “Payday Loan Customer Satisfaction Study,” April 2004)

Payday loans exist because the public supports them

Regardless of media claims, payday loans are a viable form of short-term support when consumers face financial shortfall. Consumers find them to be consistently fast, convenient and discreet. When the simple, most direct data is studied as Answers, etc. has done, the haze of media bias is cleared and real answers become apparent.

Payday loans have come under a lot of scrutiny from anti industry opponents. These opponents have deceptively convinced consumers that the payday loans Industry is predatory in nature. Many of these opponents are the banks themselves who want to monopolize the loan business to their own advantage.

Ironically, some of the latest fallout from the downward spiraling of the economy is forcing the banks to increase the rates and fees they impose on consumers. Due to the severe losses the banks have incurred, they are now trying to offset the losses over the past year and a half from default mortgage loans, by imposing stricter and higher fees on their customers.

Some of the fee increases are related to the following:

Overdraft Fees

Fees, Fees, And More Fees!

Overdraft fees are probably the most famous of bank fees as their deployment on consumers has caused more than a few uproars.

These fees, which are charged when a customer overdrafts their account or exceeds their account balance, can range from a set fee per overdraft to an escalating scale of charges for each subsequent overdraft. A typical overdraft charge can be anywhere from $25 to $60, which are higher than the fees for most payday loans.

Cash Advance Fees

Cash Advance Fees are charged based upon a set percentage of the amount withdrawn from an available credit line.

Minimum Balance Fees

Minimum balance fees are charged when a customer fails to maintain a set minimum balance predetermined by the bank. These fees are in place most likely to help secure a percentage of the bank’s assets.

ATM Fees

ATM Fees are typically charged when a consumer withdraws funds from an ATM machine that doesn’t belong to their own personal bank. These fees can cost upwards of $4 per transaction depending on the bank.

Consumers Should Beware

For consumers with bank issued credit cards, it is highly advised that attention is paid to these rising fees. These banking institutions have the right under law to change their rates but are also required by the law to notify their customer base of any and all changes they make to the terms and conditions of the customers’ account.

Unfortunately however, most consumers fail to get these updates which are usually included with a mailed notice such as a newsletter or bank statement. Failure to get these mailed notices may result in fees which offset a customers’ perceived balance and eventually incur the more costlier overdraft charges.

JPMorgan Chase Raises Fees

JP Morgan Chase has publicly announced that it will be raising rates on overdraft protection, cash advances, as well as its default rate. The default rate is usually the imposed Annual Percentage Rate that is applied to accounts when a customer surpasses their credit limit or is late on their payments. Also if a larger balance has been carried for longer than two years, expect a new $10 monthly service fee to start showing up on your banking statement. Your minimum payment each month will also be rising from 2% of the total balance owed to 5%. This is obviously the bank’s attempt to motivate consumers to pay back what is owed, thus Increasing the percentage of liquid assets available to the bank.

Expect to see your minimum payments increase!

Do You Have Perfect Credit? So What!

It is nothing out of the ordinary to see someone with poor or mediocre credit to come under increased scrutiny or be penalized by banks or other creditors when applying for an account. Now however, even those who have been diligent about maintaining a high credit score will likely see their available credit dropped and the current rate on their existing balance raised.

Alternatives to consider

Unfortunately for many consumers, the banks changing of the rules at half time may prove to be devastating. The economy is picking on more than just the banking sector as consumers everywhere are struggling to make ends meet from one month to the next. For those who are currently strapped financially with economic troubles of their own, changing rates and minimum payment requirements may be the straw that breaks the camel’s back.

Are You Facing Financial Trouble?

If you happen to be one of these struggling consumers, it is important to note that the speed in which you choose to take control of your situation will prove to be the most valuable. The higher your credit score the more opportunity you may have to take control of your debt. You can read more about your available options in the following article entitled,

“Debt Consolidation | What Are Your Options.”

In the meantime, customers may find it profitable to pull payday loans to avoid pending overdraft charges from being charged to your bank account. It is more important now than ever before to both pay attention and be aware of your options.

When was the last time you had an overdraft fee? It’s typically a memorable event that is usually accompanied by some self induced growling and occasional profanity. In short it’s an experience that doesn’t just roll off your back. Most of us will carry it around with us like a bad growth, and some people get payday loans to circumvent it.

Most feel tricked or betrayed when hit by an overdraft charge. Banks have gotten very constructive and even sneaky in there efforts to take advantage of this window of opportunity and they are not making a big effort in helping their clients avoid such situations either.

With the recent mortgage crisis their has been a sharp rise in the cost of banking fees. Many speculate that this is because of the revenue lost due to the increased number of mortgage defaults. Bank fees are at all time highs and getting nailed now can really put the hurt on your finances, and it may just be worth it to look into payday loans instead.

Here are some tips to help you avoid getting struck by overdraft fees.

Balance Your Account Often

Are your banks fees sneaking up on you?

Many of us may not give our bank account an appropriate amount of maintenance. In fact, a large majority will balance there account balance and check book only when they receive their monthly statement. This is indeed a good time to do so, but it should be balanced more than once a month. Loosing track of how much money is remaining in your account is the number one way to get hit by fees for insufficient funds.

At the very least take a few minutes at the end of each week to crunch the numbers and make sure everything balances out. The more often the better but at the very least strive for once a week and always compare the outcome with your monthly bank statement.

Open All Mail From Your Bank

Be sure to open your mail! If you have a habit of just throwing your mail from the bank into a miscellaneous pile on your desk or file them as they are, you may miss an important notice letting you know that your account has hit the red zone. Every check that hits the bank at this point is going to bounce and you are going to accrue an outrageous amount of overdraft charges. Always open you bank mail!.

Also if the mistake happens to be the banks fault, it is better to catch and dispute the problem early as the more fees that hit your account and compound’s the problem, the more difficult and frustrating it may be to sort the problem out.

Also, you must remember that the bank does everything by mail. When you overdraft your account you will not receive a phone call. This means that by the time you have found out about the discrepancy, a couple days may have already passed. Additional overdraft charges may have hit your account already.

Be Cautious of Rising Fees

The Consumer Federation of America (CFA) reported that 80% of our countries largest banks charge their customers high overdraft fees without their permission. It may come as a shock to you that your bank doesn’t need to get your permission to raise fees that will effect your banking experience, but they don’t. They are however, required to notify you by mail, but there is no requirement as to how small the fine print can be.

These notices will usually come with your bank statement. So once again, be sure to read your mail, including the fine print.

The problem that usually arises with rising fees is that the unaware consumer may be getting charged for dipping below a newly set minimum balance limit. These fees if left unrecorded, can eventually catch up with you in a big way as you get closer to zeroing out your account balance.

Another area that may sneak up on you are ATM fees. Usually your banks ATM fees won’t charge you for making a withdrawal but other banks ATM machines can get you into a whole lot of trouble. These charges can be close to four dollars in places. Leaving these fees unrecorded as said before, will eventually catch up to you so you must make sure that you are aware of any and all fees. Your bank is always ready to catch your mistake so be sure that you catch yourself from making them – which payday loans are great for.

Once again, bank ATM and overdraft fees are on the rise. This comes after a survey released last week by Bankrate.com based on information from 249 banks in the nations 25 largest metropolitan areas. The good news however, is that avoiding such fees is easy. “With 24-7 online access to your accounts, there’s really no excuse for losing track of your balance anymore,” said Greg McBride, senior financial analyst with Bankrate. So, the ancient proverb rings true “to whom much is given much is required”.

The survey quotes the average fee for using another banks ATM is now $3.43, up 13 percent from last year. A bounced check costs an average of $28.95, up 2.5 percent from a year ago – more than the fee from the average payday loans lenders.

Why the Higher Fees?

Is your bank nickel and diming you?

The higher fees can be a result of many things. With the recent trouble in our economy many banks may simply be trying to make up lost capital. Others may be rising their fees to hold consumers accountable to their personal finances. With a stressed economy and rising unemployment rates many people are simply falling short financially.

With all the competition between banks to win market share, many have reduced or eliminated many of the set up costs for opening a new account. The number of banks offering free checking has doubled in the past few years. Now we know where the difference is being made up.

Consumer Concerns and Protecting Yourself

Among consumers the most outrage seem to be over overdraft fees. With many banks adopting a tiered structure where each successive overdraft costs more than the previous, which has never been how payday loans work. The cascading effect of making a small discrepancy balancing your checkbook can prove to be more than costly.

The best thing that consumers can do to avoid penalty is to stay on top of their finances. Balancing your checkbook more carefully and more often will help you to catch oversights that you might otherwise miss.

The largest percentage of overdraft fees seems to be from unrecorded debits. If you use a debit card for all your transactions it is imperative that you request and record your receipts. A safer way is to use a credit card for your monthly transactions and than write a check for the full balance at the end of the month. This way you curb the risk of over drafting your account using your debit card as well as providing yourself a monthly ledger of your purchases for quick review.

As a Last Resort

If you find yourself in a position where you have over drafted your account and you still have checks that have yet to hit your bank, you may consider applying for payday loans.  Payday loans would be far less costly than multiple overdrafts. Individuals can apply and be approved for payday loans online. The process is quick and easy and best of all, funds are electronically deposited into your bank account automatically so your funds will be their before your next check hits the bank.

At a time when more consumers are struggling to pay their bills, large banks are raising some account fees to record levels.

Your Cash Advance Loans News Source Quoted With Edits From: Bank fees are setting records

The Banks are setting more records then Micheal Phelps!

Overdrafting your account could lead you to Cash Advance Loans

2008 continues to set records in more ways than one. USA Today reported that according to a survey released;

Last Monday by Bankrate.com, the banking industries Bounced-check fees, ATM fees, monthly service fees and balance requirements for interest checking accounts hit all time highs.

The article went on to say that the fees still have not been adjusted for inflation this year which will push the bar a little further.

What is causing the record high fee’s?

As we all well know, Americans are not the only ones having a tough time in today’s economy. Business and industry is also, including the banks. Because of tough times, It’s quite likely that the high fees are an effort to stay on budget. This of course is frustrating to the average consumer, especially after the near 700 billion dollar bailout bill last month. If anybody was doing well in today’s economy you would think it would be the banks.

Not only are they raising fees, the rules are changing

Apart from the rising fees, the banks are coming under scrutiny for the way they are now charging for those fees as well. Looking at overdraft fees for example, the banks have changed the rules. Many are charging a smaller fee for the first overdraft charge while increasing the fee’s with each additional occurrence. Many feel these restructured fee’s are predatory in nature, as a small oversight balancing your checkbook can compound into an outrageous sum before the mistake is caught.

One thing is for certain, we can’t change the bank’s policies and procedures but we can exercise more diligence with our finances to avoid these so called “booby traps” ourselves. If you are fortunate to
find a mistake before it hits, stop any pending withdrawals immediately. In the case that you are not fortunate enough to catch the mistake, you can apply for cash advance loans to put some extra cash back into your bank account before more fees hit.

Banks are also charging individuals who are not customers, fees for cashing checks written by customers. See this video above.

It’s hard to live without a checking account. But it’s also hard to live with the fees you can rack up if you overdraw it, and banks are only too happy to help you do it. For example, many clear checks by size rather than sequence.

Quoted With Edits From: Overdraft Traps and How to Avoid Them (WYMT Mountain News)

Does Plastic Equal Convenience?

You may have seen the Visa commercials that portray consumers who are paying for consumer goods with cash as, behind the times, uncool or a wrench in a well oil machine. This is of course Visa’s attempt to persuade viewers to use their payment methods however, we can all attest to the fact that plastic is a far more convenient payment solution than cash. Just like payday loans are far more convenient than getting a loan through the bank.

With the media and technology industry relentlessly promoting a cashless society it is hard to live without a checking account and debit card today. Unfortunately, this subjects us to a slew of other inconveniences as well.

Fees, What Fee’s?

Namely, it’s the fees that we have to pay just to have the privilege of using a checking account.

ATM's Can Cost You!

These range from things like, monthly service charges, overdraft fees, check fees, ATM fees, minimum balance fees, and a host of others that seems to nickel and dime our financial well being.

The most dreaded of all banking fees is the overdraft charge. Unfortunately it’s not in the banks best interest to help you avoid these fees so a small misstep can find you falling down a slippery and costly slope that could require you to take out payday loans.

Overdraft fees are the outcome of over drafting your account, or in other words spending money that you don’t have. These fee’s cost on average about $28 to $35 per overdraft but some banks have a tiered structure which increases the amount of each successive overdraft charge that hits the bank.

Your Next ATM Cash Advance May Give You More Trouble Than Cash.

Many make the mistake of overdrawing their account when pulling cash out of ATM machines. Because folks are more likely to carry there ATM cards with them rather than their checkbooks, they are often left guessing what they have left in their checking accounts when making withdrawals. The downside to this is that the withdrawals made at ATM’s are immediate deducted and the bank does not prevent you from overdrawing your account therefore, accidentally requesting more money from the machine then you have funds in your account to cover, will result in an overdraft charge.

The banks calls these overdraft transactions “courtesy overdrafts”, which are really no more than a loan which you did not ask for but are held to the terms and conditions thereof. These loans may be as small as a penny but will require a payment of $30 to be made within a week’s period of time before additional fees and charges are accrued.

What Can You Do?

The solution to this problem although simple, is quite difficult for many. It requires a more persistent and careful eye on your finances. Taking a few minutes each evening to record your day’s transactions and balance your checkbook will likely save you a lot of trouble sooner or later. If this proves to be to difficult, it would be wiser to make all your transactions on a credit card which you could then payoff at the end of the month. This would prevent overdrafts but may encourage unhealthy spending habits. If you have found yourself with too many costly overdraft fees, you can apply for payday loans to get your checking account back on track.

Dear Harry: I’m pretty sure you’ve written about bank overdraft fees before, but I think it needs to be exposed over and over again because more and more people are getting hurt.

Quoted With Edits From: Harry Gross: The chilling effect of overdraft fees (Philly.com)

Seeking Help

If you think you’re the only one who is facing outrageous overdraft fees, think again. Overdraft fees are a huge problem, and banks are making a killing on them. One reader of the Philadelphia Daily News even wrote in to ask for professional help. This reader was charged overdraft fees when his account had a positive balance! Apparently, banks are letting their clients overdraw in order to hit them with overdraft fees. Some banks charge $25 for the first overdraft in one day, $32 for the second, and $35 for all subsequent ones. I guess this is a good way for the banks to make money, but it makes life rough for the customers and it is making more of them turn to quick payday loans to pay for fees accrued.

Writing in for help with overdraft fees

How to Avoid Overdraft Fees

Sometimes, overdraft fees are unavoidable–especially if you’re like the Philadelphia Daily News reader who got charged even though his account was in the black. However, there are easy ways to avoid overdraft fees. First and foremost, you should be familiar with your bank’s overdraft fee rates and policies. Every bank is different, so you can’t just assume you know the regulations. Make sure you read the finest of the fine print, just like you would when you apply for quick payday loans. Secondly, you need to keep track of your bank account; keep up on your checking account ledger and/or check your account online on a regular basis. Thirdly, if you know you’re short on funds, don’t feel like you have to overdraft your account to pay the pills. You can always get quick payday loans instead of facing the steep overdraft fees!

Quoted With Edits From: Big banks might cost consumers even more (The Columbus Dispatch)

Consumer Alert

Consumers may want to take caution with there credit card companies a personal bank accounts as policies may be changing for you. With the high number of default mortgages flooding the banks as well as the bank mergers taking place, you may get penalized and may be in the need of a payday loan.

It’s Nothing Personal…

You may be current on your balances and pay more than the minimum due each month but that won’t help you this time. It’s not that you have done anything wrong, it’s just that everyone else wants to see a profit!!

With the reported losses in default mortgage loans and company merger acquisition fees, banks and consumer credit companies are trying to make up their losses wherever they can and what better place to do so than with their current client base.

More Fees?

Don't let bank fees ax your payroll!

According to law, consumers must be notified of any changes to be made to their current agreements but these notices, more often times than not, get overlooked.

The biggest penalties will come in the form of overdraft fees and late payment fees but you may also see fees increase for dipping below the allotted minimum balance in your account. Expect to see the minimum amount increase as well.

ATM machines are the next likely place to take consumers off guard as fees are approaching almost four dollars for using an ATM machine that does not belong to your own bank.

Another outcome you will likely be seeing is reduced credit lines. A credit line you currently have open with your bank and or credit card provider, will likely drop as banks minimize their liability and risk with an unstable economy, fearing that consumer spending will spend more than they can afford to pay. Remember, if your credit line with the bank has decreased you an apply for a payday loan to make ends meet.

The best thing that consumers can do to protect themselves is to check with all there creditors for recent policy changes and be cautious of their current balances. Responsibility will pay dividends this year! If an emergency does strike your finances, you can always apply for a payday loan to help get you back on your feet.

If your bank is buying the competition or selling out to them, you may want to add the phrase “higher fees” to your banking vocabulary.

Quoted With Edits From: Bigger banks mean bigger fees (The News & Observer at http://www.newsobserver.com/business/story/1243454.html)

Big Banks Make the Big Bucks

Big Bucks

Big banks are buying out the little guys, so chances are you’re either a client of a big bank or a soon-to-be client of a big bank. With big banks, come big fees unlike a cash advance that has a one time fee. Big banks make a lot of money off their customers by charging outlandish overdraft fees. Some overdraft fees can be as high as $37.50 each time you overdraw your account. So, if you’re with a big bank, you should expect some hefty fees when you overdraw your bank account.

Be Smart, Save Money

The most obvious solution to avoiding overdraft fees is to not overdraft your account. Sometimes that isn’t an option or you just lose track of how much money is in your account. You could get an account at a smaller bank, but with the way things are going, who knows how stable a small bank will be. The smartest alternative to overdrawing your account is a cash advance. With a cash advance you can pay a small fee for borrowing money, instead of paying almost $38 for each time you overdraw your account.

Quoted With Edits From: Post-merger banks likely to raise fees (The Kansas City Star)

Mortgage crisis, credit crunch, federal bailout, bank merger, what does all this mean?

In two words, Higher Fees!

With the mortgage crisis, we are seeing an unprecedented number of mortgage defaults causing many of the banks to brace themselves for what may be the beginning of a global recession. Banks may be suffering from the sudden burst of defaults home loans but expect to see them relieve themselves by passing some of the costs over to you, which may force you to obtain a payday loan.

Where will the costs come from?

Higher bank fees may cost you!

That’s right, bank fees are expected to rise for consumers as banks try to recoup their losses. The fees will come in many forms. Most likely overdrafts fees. Overdraft fees, the fees that result from over drafting your account may take on a different structure as well. Some banks are adopting an incremental system where each additional overdraft after the first will cost you additional. This may be detrimental to those folks who have poor habits when it comes to balancing there check books.

Another place you can expect to see fees is at the ATM machine. Using a ATM machine that does not belong to your personal bank may cost you additional fees. Some banks are already charging close to four dollars per transaction. Be cautious and remember to check for rising fees at the ATM. Failure to do so may send you on your way to over drafting your account and applying for a payday loan.

Apart from these two fees you may find the bank charging you a larger fee for failing to keep the minimum required balance in your account. Your minimum balance may increase as well to give banks a higher cash reserve.

Avoiding fees where you can

If you still use checks you might want to consider getting enrolled in auto pay which may will save you on the rising cost of check and any fees associated with them. Auto pay, a service provided by most banks, allowing customers to pay bills from their personal checking account, is not only a money saver but a timer saver as well. This cost of this service may increase in cost as well and if it does you will have to weigh in the difference.

Pay attention and protect yourself

Fortunately by law your bank and other creditors are required to give you notice of any changes to your account. The notices however are missed by most consumers and when caught they are seldomly read. It is important to pay attention to any other paperwork provided by your bank. If higher bank fees are causing you financial stress, a payday loan is available to get your bank account back on the plus side.