Tuesday, September 12, 2006

The Ethics of Overdraft Fees?

Wikipedia has an interesting discussion on banks and the potentially unethical practice of overdraft fees.

Bank policy greatly affects the bank's ability to charge overdraft fees. Some banks alter the order in which transactions are applied during the day to maximize overdraft fees. For instance, if there is $100 available and withdrawals in the amounts of $1, $5, $7, $10, and $105 are all posted in the same batch, many banks will post the larger withdrawals first, causing 5 overdraft fees. In contrast, if these withdrawals are applied in the order above, only the last withdrawal will overdraft, and only one fee will be assessed.

My guess is that whoever wrote this article is probably an idiot and has had to pay overdraft fees recently.


Anonymous said...

Your guess would be right. But that article was written years ago, before the invention of the internet.

Anonymous said...

i understand queers like to be overdrafted. overdrafted the butt

Anonymous said...

What does that even mean?