Bank Customer Fired for Bad Credit, Overdrafts
Friday May 11, 2007
Earlier this week, Consumerism Commentary told the story of an ING Direct customer who's checking account got closed unilaterally (by the bank). The bank was not comfortable with the frequency of overdrafts in Nick's account, and they subsequently did a credit check. Next, Nick got an email that the account would be closed. This serves as a reminder that banks can take away a service if we don't manage our finances to their liking. Overdraft protection is handy, but it should be used as a safety net only -- the costs involved make it an extremely expensive line of credit. For the full story, visit Consumerism Commentary.
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Comments
Thanks for point this out, but there is more to this; check out an actual view of a screen for ING’s EO account:
Balance - Pending = Available Balance + Overdraft Line = Spending Power
$488.42 $323.87 $164.55 $165.00 $329.55
It didn’t lay out right; my apologies. Basically, the OLOC/Overdraft protection is included automatically, and as indicated by the equals sign, shows the “AVAILABLE SPENDING POWER”
This is an invitation; not a “don’t use this” display.
Secondly, ING’s fees are very reasonable for using the OLOC. If $500 is used, instead of the normal 25-35 per overdraft charge, it’s a flat 12%, which would be $60, vs. any other huge fees other banks charge.
That is not to say you should use this frequently, but that if you HAVE to use it, ING’s is the much much better deal.
ING tried to do that to me. I complained and they IMMEDIATELY reversed their decision and kept my account open. Down let banks walk all over you. Stand up for yourself!