A friend told me that the bank in America have an unfair practice to levy the overdraft fee on many transactions during a month.
For example, if the customer has a few transactions that may result in an overdraft, the bank will debit the largest transaction first to cause the account to be overdrawn. All subsequent transactions will be overdraft and each will attract an overdrawn fee. It may result in the fee being applied to many transactions in a month.
The US Congress is passing a law to disallow a bank from this kind of practice and to require the bank to debit the transactions in the chronological order that they have been received.
I find this type of practice to be dishonest. However, the bank seems to be able to get away with it, and a new law has to be passed to stop them from continuing with it. It seems that the standard of honesty has dropped to a low level and that bankers need a law to tell them what is honesty.
Finance companies and banks do not have the word "honesty" in their dictionary.
ReplyDeleteIf we are to believe a senior Statesman who have been around the last 40 over years and recently won a US award then maybe these bankers should have a salary raise to help them ward off any thoughts of corruption?
ReplyDeleteThe customers have to be responsible for themselves too. Live within own means, balance checkbook and avoid overdraft especially for consumer expenses.
ReplyDeleteA valid reason to take a loan or overdraft is for business purposes. Check out all the terms and fees, and keep repayments manageable and ontime.