I have yet another story about another bank behaving badly and an assignment for you.
Chase Bank will have to paying more than $100 million to settle a lawsuit about how they cheated you if you overdrew your checking account. Let me say this: Chase was not alone in all this. They were one of dozens of banks that thought it was great idea to figure out how to rip you off to the max.
Here’s how this one played out: Chase would approve transactions when you didn’t have money causing you to overdraft. Bad enough right? But they also loved to use software that recalculated your recent transactions to figure out the exact order they should be processed in to generate the most bounced checks or more bounce debit charges.
So if you had six items clear over a weekend, they could go chronologically and maybe only the last transaction would bounce. But instead they used their software and generally processed the largest transactions first, instead of in the order they came in, and suddenly they could generate as many as five overdraft charges.
It’s despicable, disgusting and reprehensible. What in the world happened to old timey decency in business? Capitalists who look at their customers’ best interests first typically do the best.
At this time, the $110 million settlement is still pending in Miami federal court. Until it is approved, here are your assignments:
- Keep good records. Track your balance at all times. They can’t rip you off at $35 a pop if you do your part and know you’re good for dough before making a purchase.
- Know that it is not a matter of if, but when, a big bank will take advantage of you. Go find another place while the getting is good. Look at small local community banks or credit union as your best option.