Overdraft protection gave customer more trouble than help
Bank put $1,000 in account and treated it as a loan with a 24 percent annual rate, then didnt care about its loyal customers objection.
DEAR HARRY: I'm having a lot of trouble with my bank. I have been a customer for as long as I can remember, and I never had a problem like this before. I made an error in my record of the checking account and overdrew it by $72 with a check for $164. The bank notified me of the overdraw, and said that overdraft protection saved me a lot of trouble with my creditor. When my statement came, I discovered a charge of $50 for the check and an additional $17 for interest. The bank had automatically put $1,000 in my account and treated it as a loan with a 24 percent annual rate. When I called to protest, all I could get was, "You were notified of the terms when you chose the protection plan." I called at least five more times to try to get someone in authority to waive the charges. No luck. With my long history with the bank, I figured that someone would give me a break. Can I do anything more?
WHAT HARRY SAYS: Not much. Years ago a reader told me of his encounter with his bank. He said he was told that the bank was not his friend, and the best thing to do for friendship was to buy a dog. Another reader asked about getting a large depositor at the bank to try to use his influence. That did help. I'm sure the bank is operating under its rules, but banks with hearts are hard to find. With your record, why do you need overdraft protection?