I've been gouged for $99! Are bank charges negotiable?
by
Scott Bilker |
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Hi Scott,
This just happened to me in the last few
weeks.
I spoke to my bank (Bank of America aka BOA)
about overdraft protection, which they said was a free service. I agreed to sign
up for it. My overdraft protection is linked to our Visa card with BOA.
I wrote a check, which would have caused an
overdraft, but since I had the overdraft protection, they took out 3k on our Visa
account. Now we got the bill from Visa, which has both a transaction fee finance
charge of $99.00 and a periodic rate finance charge (I suppose that's on the 3k
we borrowed).
My question is: Is this a charge that I might
successfully have waived? Or, shall I resign myself to paying? If it is
fightable, any tips on what I might say to them?
Thanks in advance!
Marv
Marv,
They really ripped you off on this one. Sure, you
have overdraft protection, BUT I'm positive that if you do go over, then the
amount is taken from your Visa as a cash advance. That means they hit you with a
cash advance fee and the cash advance fee interest rate, which is probably
around 20%.
Sneaky, sneaky.
Yes, you can certainly try to get that waived! I
don't know if it's "fightable" because it's probably in their terms that you
agreed with, but so what! If they want to keep you as a customer, then they need
to waive or reduce that fee.
Call them and say, "Hey, I just noticed this $99
charge. What's that about?." They'll explain. Then you say, "Hmmm, I really
didn't understand those terms. Could you waive that fee for me?" They may or may
not. If not, ask to speak to a supervisor, and give them the same spiel. If the
super is not doing it, then tell them, "Listen, I've been a customer for X years,
but I do have other cards I can use. I would rather use BOA, but I feel I'm being
gouged, and I don't like that feeling. If you cannot accommodate me this time, I
may close my account or simply stop using this card." If he comes back with, "I
cannot waive that fee," then say, "how about reducing it to $50. Something!
Something to show me that I should continue to do business with BOA."
Call them now! Make them waive or reduce that
fee.
Also, please let me know what happens.
Scott
Scott
I just called and went through the spiel you
wrote for me.
She at first said that she couldn’t waive a
charge for a transaction that appears on the statement.
When I then asked for a supervisor, she said
she was an account manager and I could talk to her. I then went into the second
part of your spiel in a nice low calm voice.
She asked me to hold while she checked
something.
When she came back, she said "Sir, we will be
able to waive the charge seeing as you have been a customer since 2001."
I then thanked her and asked her what the
charges would have been had I not had the overdraft protection, and she said that
was not her area. (She's in the credit card department). I could speak to the
bank itself and find out more.
I am thinking of just removing the overdraft
protection. I'll just have to keep an eye on our balance like I actually have
been doing all these years until I signed up for the overdraft protection
program. I guess that made me lower my guard and not check up on my account
balance, blissfully trusting in the bank's overdraft protection.
Once again, Scott, you saved me a good couple
of bucks ($99.00) just by teaching me what to say.
My wife will be happy to hear about this!
Marv
| " |
Realistic. Suggestions are
easy to follow."
--Umesha N Shetty
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| " |
Negotiating fees with a bank
is a wonderful thing to do. However, for the current
environment the article failed to mention that bank got
TARP funds and because the bank got help with taxpayer
dollars should help its customers too."
--Ben Gamoran
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| " |
It was very personable. I
think that you are getting a message out to check your
fine print to what you are agreeing to pay. There should
be a way to have it up front as to what your fees are
and not need to use a magnifying glass. Maybe you could
do a article on life and critical illness insurance on
lines of credit or charge cards. This is very expensive
and are you getting what you're thinking. They seem to
charge twice on the same account if it is joint. The fee
is charged per person insured on the same balance. The
fees are shown as 1 amount. It isn't broken into each
person fee."
--Berkins
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| " |
BaA also has overdraft
protection that is not linked to the credit card. I've
had it for years (though perhaps I'm grandfathered
in--the account was originally BayBank, then Bank of
Boston, then Fleet, THEN BoA. At least two of their
account offerings allows no-fee overdraft protection,
but their plans vary by state, too. But it's best to
follow your advice, Scott, and not spend money that you
don't have! Thanks for a very useful newsletter.
(Personally, I am about debt-free. One car payment, and
the credit card has only the auto repairs from
Monday...)"
--John |
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