Debt Free

Already a major profit center for banks and other financial institutions, the checking account overdraft fees banks charge their customers are going up yet again. At least two major banks, Charlotte, NC-based  Bank of America, and Seattle's Washington Mutual are jacking up the fees they'll charge customers for overdrawing their checking accounts. In  addition they will make it more likely that banking customers will be charged the ffes and less likely that they'll be able to talk their way out of them.

Another bank, also Charlotte based, Wachovia, who was in the news recently for firing their CEO, has gone so far as to send a memo to employees about overdraft fees. Reportedly the memo stated the bank was "..looking for every possible way to generate revenue" and told employees they should not go easy on customers trying to talk their way out of paying late, overdraft, or over the limit fees.

Although it is certainly well within any business's right to charge fees for whatever they see fit, including going a bit over on a checking account, it's also well within a customer's right to find another service provider if they feel dissatisfied. Banks are betting that consumers who are already feeling squeezed by jumping fuel prices, rising food prices and increasing mortgage payments will just sit idly by while the bank inflates their fee structure. If in fact consumers do this, the banks will be vindicated in their decisions. On the other hand, if customers respond by voting as consumers always have, with their dollars, by transferring said dollars to another institution if they feel their bank's fees are unfair, the banks may not be so quick to raise fees the next time.

So, just because you didn't get an ARM that's now adjusted way upwards when you bought your last house, doesn't mean that you won't  be helping to pay for those who did, in the form of higher bank fees. Watch out at your bank.