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Some Banks "Keep" Customers' Stimulus Checks if Overdrawn

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Link:  https://www.yahoo.com/news/banks-keep-customers-stimulus-checks-185353669.html

 

Nothing new here.  Banks have been able to offset money owed them forever.  If the checking account is negative this is what happens.  I wouldn't say the customer is losing money.  They just spent it before they even had it.

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48 minutes ago, Burgerwars said:

Link:  https://www.yahoo.com/news/banks-keep-customers-stimulus-checks-185353669.html

 

Nothing new here.  Banks have been able to offset money owed them forever.  If the checking account is negative this is what happens.  I wouldn't say the customer is losing money.  They just spent it before they even had it.

Well said Burgerwars.

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Posted (edited)

What music service(s) cost $2,650 that he forgot to cancel? Does Lady Gaga make a personal performance at his house? There's more problems going on here that any amount of checks can't solve.

 

Quote:

"That was what happened to Benji Pedro of Columbia, South Carolina. Because his account at Safe Federal Credit Union was overdrawn by $2,650, he had planned to ask the Treasury Department to mail him a check. But before he could, the agency deposited $1,200 into the overdrawn account Wednesday, and a representative of the credit union told him that it was keeping all of it, Pedro said.

Pedro, a 24-year-old recording artist who lives with his girlfriend and their child, said his account had been overdrawn because of subscriptions to two music services that he had forgotten to cancel."

Edited by Burgerwars

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51 minutes ago, hegemony said:

who names a human being "Benji?"

 

Believe it or not, in Jr. High, there were a few who had these first names.

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1 hour ago, hegemony said:

who names a human being "Benji?"

Wasn't there a film by that name some years back?  I'm too lazy to look...

 

It must have picked up popularity somewhere though...I saw it again the other night on a re-run of Shark Tank as part of a product name.

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45 minutes ago, centex said:

Wasn't there a film by that name some years back?  I'm too lazy to look...

 

It must have picked up popularity somewhere though...I saw it again the other night on a re-run of Shark Tank as part of a product name.

I think the movie was about a dog named Benji.

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48 minutes ago, hegemony said:

I think the movie was about a dog named Benji.

OK, thanks for the reminder on why that name was popular. The timeline (early 70's) fits.

 

 

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his account had been overdrawn because of subscriptions to two music services that he had forgotten to cancel.

 

 

That's also how I ended up $2650 overdrawn. 

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1 hour ago, Burgerwars said:

Because his account  was overdrawn by $2,650...

 

...his account had been overdrawn because of subscriptions to two music services that he had forgotten to cancel."

🐮  💩

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24-year-old recording artist who lives with his girlfriend and their child
 

+++++++++++

 

She had been counting on $2,400 — the sum being distributed to married couples — to help pay rent and buy formula for her 10-month-old daughter

 

+++++++++++

 

She and her husband have four children. 
 

+++++++++++

 

 

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Posted (edited)

Count me as impressed (only because my expectations of banks these days are at an all time low ...)

 

Quote

Not every bank is keeping its overdrawn customers’ money. Bank of America, JPMorgan Chase, Citibank and Wells Fargo — the nation’s four biggest banks — are pausing their collections on negative account balances to give customers access to the stimulus.

eta:  If I were an officer of one of these banks, I'd send out a letter to any recipient being given available funds credit for a stimulus payment despite the overdraft position of their account.  The letter would explain the courtesy being extended and state that the bank continues to value their business and would like to assist with restoring the checking account to a satisfactory status.  Invite the account holder to call to explore terms under which payment arrangements might be established through which continued account utility would be feasible.

Edited by hdporter

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10 hours ago, hdporter said:

Count me as impressed (only because my expectations of banks these days are at an all time low ...)

 

eta:  If I were an officer of one of these banks, I'd send out a letter to any recipient being given available funds credit for a stimulus payment despite the overdraft position of their account.  The letter would explain the courtesy being extended and state that the bank continues to value their business and would like to assist with restoring the checking account to a satisfactory status.  Invite the account holder to call to explore terms under which payment arrangements might be established through which continued account utility would be feasible.

The big banks are doing this to avoid bad press about how they stole money from a single mother in New Jersey who was orphaned at birth and raised by a colony of bats who needed the funds to feed homeless people who were molested by autistic Boy Scout chaplains.

 

This approach is going to guarantee overwhelming numbers of intentional future overdrafts, as people anticipate the next round of stimulus payments. 

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“While Treasury has refused to follow congressional intent, that does not give banks license to steal the stimulus payments from their customers.”

 

Who is stealing from whom here?  Was it the customer who took more more out of their account(s) than they knew they had, or the banks that use this money to offset the customer's overdrawn account(s)?

 

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2 hours ago, cv91915 said:

If I owed someone $2,600 and a stranger paid $1,200 of it without me asking and with no strings attached, I'd be grateful.

 

But in some other universe, there is theft involved in that transaction.

 

Welcome to the calculus of the "entitled".

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17 hours ago, hdporter said:

the bank continues to value their business and would like to assist with restoring the checking account to a satisfactory status.

Something tells me these people don't care to make their checking accounts good. Though part of it is on the banks too - how do you continue to allow transactions once the balance gets below zero?

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4 hours ago, IndyPoolPlayer said:

Something tells me these people don't care to make their checking accounts good. Though part of it is on the banks too - how do you continue to allow transactions once the balance gets below zero?

The one straight said he was going to ask Treasury for a paper check since his account was overdrawn.  Dude was going out of his way to screw the bank.  

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8 hours ago, IndyPoolPlayer said:

Something tells me these people don't care to make their checking accounts good. Though part of it is on the banks too - how do you continue to allow transactions once the balance gets below zero?

Overdraft protection. Plus you can always pass off a bad check once or twice before they close your account. With good history they will credit you before it actually clears and you can spend the money before it is debited. There's tons of ways to game the banking system. 

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3 hours ago, shifter said:

Overdraft protection. Plus you can always pass off a bad check once or twice before they close your account. With good history they will credit you before it actually clears and you can spend the money before it is debited. There's tons of ways to game the banking system. 

Overdraft protection is usually a credit history driven product? I know the couple checking accounts (ING Direct now Crap1 360, and my primary brick-mortar bank) I have that offer overdraft protection based said protection on my credit history.

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