Illinois Teen Learns About Bank Fees the Hard Way

[garbon]

http://news.yahoo.com/illinois-teen-learns-bank-fees-hard-way-154654489.html

Melinda Ganziano of McCullom Lake, Ill., wanted to introduce her son to the basics of banking, but he ended up with $229 in fees in two weeks with a balance of just $4.85.

Ganziano, a 55-year-old mother of five children, encouraged her fourth child, Daniel, 18, to set up a savings account at a nearby TCF Bank "out of convenience" due to its location.

Ganziano and her son discovered that the bank offered little convenience due to the growing number of bank fees, as first reported by the Chicago Tribune.

After he put money into the savings accont from his job, Daniel Ganziano's balance eventually fell to $4.85 and with such a small amount, he ignored it.

However, TCF sent him a letter on Oct. 12 informing him that it had charged him a $9.95 monthly maintenance fee six days earlier because the account had a low balance. That led to an overdrawn account by $5.10, which then led to a $28-a-day overdraft fee. The account was 10 cents over the $5 threshold for which the daily fee kicks in. Young Ganziano's account was now overdrawn by $33.10.

Ganziano, who works in the nonprofit sector, and her son went to the bank that weekend to close his account, the Tribune reported. But they first had to pay the accumulated fees, which totaled $229.10.

Ganziano, who banks elsewhere, asked for the fees to be waived, but the bank would eliminate only one of the $28 daily charges.

"They would just not cooperate," Ganziano told ABC News. "We were trying to teach him the right thing. If he had overdrawn by himself I would have made him pay the fees, but it wasn't him."

She also learned that her older son, who had a balance of $0, would also be charged a monthly fee so they closed his account, too. Daniel Ganziano wanted to fight it by not paying the fees.

"But we said we have to take care of it and get out," his mother said.

She decided to pay the $229.10 in fees for Daniel's account and was told a regional supervisor would call her. After not hearing from TCF by mid-November, Ganziano contacted Jon Yates, a reporter who writes the "What's Your Problem" column at the Chicago Tribune.

Soon, a TCF representative called Melinda Ganziano and agreed to send her a check for the $229.10.

Jason Korstange, a spokesman for TCF said the bank recently switched from charging people $35 for every overdraft to $28 per day for up to 14 days when an account has insufficient funds.

"If we had done it by hand, someone probably would have said, 'Oh it's just 10 cents, let's not worry about it,'" Korstange told the Chicago Tribune. "But we process millions of transactions a day, and there has to be a cutoff number."

Korstange said if the Ganzianos had gone to another branch, a different TCF worker might have refunded the overdraft fees when they first visited. TCF told ABC News it had no additional comment.

Ganziano said her older son learned "banks are not the way they used to be."

"You have to check them out really well," she said.

Hmm. So while I do feel sort of bad for the kid - especially the ridiculous fees. I'm not sure the takeaway should be that banks are evil but rather you have to pay attention to the terms you sign up for. You can't just ignore bank accounts.

[Valmy]

Banks are certainly not your friends.  That is why you check the terms carefully.

[Ed Anger]

I have little to no sympathy.

[Ideologue]

Nah, that's pretty evil.  Fees closing an account?  Shitty, but fine.  Fees overdrafting an account?  That's abominable.  This is completely within the power of the banks to not do, and it is purely a method of preying upon the most vulnerable people in society.  It's crazy that it's even legal.

[garbon]

Nah, that's pretty evil.  Fees closing an account?  Shitty, but fine.  Fees overdrafting an account?  That's abominable.  This is completely within the power of the banks to do, and it is purely a method of preying upon the most vulnerable people in society.  It's crazy that it's even legal.

What about my college bank account that came with a credit card? Unbeknownst to me, the credit card was used if there was an overdraft on the checking account. The checking account was also setup to autopay the credit card.  Long story short and a 12 cent overdraft turned into $200 worth of fees when unwatched over a few months. I couldn't even fight that they'd obscured that fun feedback loop from me as the original handler of my account no longer worked there. Lesson learned.

[Valmy]

Nah, that's pretty evil.  Fees closing an account?  Shitty, but fine.  Fees overdrafting an account?  That's abominable.  This is completely within the power of the banks to not do, and it is purely a method of preying upon the most vulnerable people in society.  It's crazy that it's even legal.

There is something pretty messed up about charging a fee on low balances that is basically designed to overdraw them.

[Admiral Yi]

Banks are certainly not your friends.  That is why you check the terms carefully.

Or not all that carefully.  All they had to check was the minimum balance to avoid a fee.

[Valmy]

I have little to no sympathy.

You, sir, are worse than Hitler.

[garbon]

Banks are certainly not your friends.  That is why you check the terms carefully.

Or not all that carefully.  All they had to check was the minimum balance to avoid a fee.

Yeah although unfortunately us youth today have no concept of personal finance.

[Ed Anger]

I have little to no sympathy.

You, sir, are worse than Hitler.

[Valmy]

Or not all that carefully.  All they had to check was the minimum balance to avoid a fee.

Well I would have made that mistake.  I have tons of crap to take care of, I am not checking my damn balance every day.  The fucking anal retentive miniscule bullshit you have to keep track of just to not be screwed just drives me nuts.

Oh your balance is only $4.85?  Enjoy your fine of hundreds of dollars.  Sucks to be you.

Meh.  Sure that would be 'all you had to do' if we did not have five hundred other 'all you had to do' to do also.  Do you have unlimited time to blow on bullshit every day Yi?

That is why when I open an account I make damn sure there will be no overdrafting or any of that.  Where do they get the right to just assume I want them to loan me money?  And then charge me for the privilege?  That is called stealing in my book.  The very fact I have to request a bank not steal from me is absurd.

[Grey Fox]

Stupid Fees.

[Admiral Yi]

Well I would have made that mistake.  I have tons of crap to take care of, I am not checking my damn balance every day.  The fucking anal retentive miniscule bullshit you have to keep track of just to not be screwed just drives me nuts.

Oh your balance is only $4.85?  Enjoy your fine of hundreds of dollars.  Sucks to be you.

Meh.  Sure that would be 'all you had to do' if we did not have five hundred other 'all you had to do' to do also.  Do you have unlimited time to blow on bullshit every day Yi?

That is why when I open an account I make damn sure there will be no overdrafting or any of that.  Where do they get the right to just assume I want them to loan me money?  And then charge me for the privilege?  That is called stealing in my book.  The very fact I have to request a bank not steal from me is absurd.

They didn't have to watch their balance every day.  Although most people with checking accounts seem to do that without the ferocious angst you seem to be feeling.  All they had to do was find out--from a teller, from a brochure, whatever--what the minimum balance requirement on the account was.  They didn't bother doing that.

[DGuller]

Just because some people aren't paying attention doesn't mean that you're entitled to play "gotcha" games with them.  I think these kinds of low balance fees and daily overdraft fees are highly unconscionable and unjustified, and banks pull that shit make payday loan places and mafia loan sharks looks like Ben Bernanke.

[Valmy]

They didn't have to watch their balance every day.  Although most people with checking accounts seem to do that without the ferocious angst you seem to be feeling.  All they had to do was find out--from a teller, from a brochure, whatever--what the minimum balance requirement on the account was.  They didn't bother doing that.

Yeah right.  I have yet to meet anybody who doesn't hate these sorts of banking fees.  It is not angst it is just being annoyed by the garbage I have to put up with.  At best they are a annoyance.