Protect Yourself From Bank Overdraft Fees

Did you know that the overdraft fee (scam) alone generates over $40 billion for banks every year? Some watchdog groups have reported that bank CEO's have more than 600 different strategies for forcing customers to overdraft their accounts. These guys are just sitting around all day thinking of different ways to steal your money!

Having a checking account with a bank is a part of life nowadays. Paying bills, going shopping and buying things online all require a checking account. Because of that fact, the banks have come up with many different ways to take advantage of you. Many of their practices are downright unfair and deceitful, stealing your hard earned money.

Enough is enough. I'm about to teach you how to fight back against the banks who are unfairly cheating you out of your money.

The most common way for banks to cheat you out of money is through overdraft fees. Bank of America was actually under the microscope recently because of a lawsuit filed against them for deceptive business practices.

The lawsuit claims Bank of America encouraged its customers to use Bank of America debit cards and increased the number of fees charged to customers using Bank of America debit cards through the order in which such transactions are posted and the account balance information it provides.

The lawsuit also claims that Bank of America authorizes debit card transactions that will result in overdraft fees; fails to warn customers that specific debit card transactions may result in overdrawn accounts; posts debit card and other transactions in high-to-low order; and provides account balance information to customers that is not current, accurate or as advertised.

In addition, the lawsuit claims that Bank of America's customer agreements are unconscionable, and that Bank of America does not provide customers with copies of account agreements until after they open their accounts.

Bank of America denies these claims and contends that it has fully complied with federal law, any applicable state laws, and its customer agreements, and also contends that it has other defenses to the claims in the lawsuit.In agreeing to settle, Bank of America does not admit it did anything wrong.

Let's go over some of the claims here. First, they encouraged their customers to use their card instead of cash, then jacked up the fees after their customers started using their cards more!

It goes on to say that debt card transactions will go through, even if you don't have the money to cover it in your checking account. We know this can be stopped because your credit card won't go through if you have no money in your account.

But by letting debt transactions go through, the bank is able to slap you with an additional $40 overdraft fee. And this is just one of the easy ways they slap you with overdraft fees. A more creative way they get you is with the order-of-transactions.