Greedy banks have found another way to cheat their customers out of money. Don’t let this happen to you!

I’ll explain…

Sometimes, unbeknown to you, your account might not have enough money in it to cover the purchase you’re about to make with your credit card, debit card, or by writing a check. When this happens, there are two possible outcomes.

First, the bank could go ahead and let the transaction go through, but they charge you an overdraft fee. That is like an extra fee for extending you credit. While I don’t love the high overdraft fees, I can see the bank’s point. They’re giving you grace by letting the transaction go through, trusting you to deposit more money later to cover it. It’s like a really high interest rate short-term loan.

Second, and this is the one I vigorously object to, is some banks have started charging a “denial fee.” They deny the transaction at the time you attempt to purchase something, and then charge you an extra fee for stopping the transaction. What?!?

If they deny you the money, they don’t need to charge you a fee on top of that!!! That is total greed and nonsense!

The Consumer Finance Protection Bureaus agrees. They are proposing a new rule to stop this junk fee.

Over the years, banks and their consultants, have concocted new fees for fake services that cost almost nothing to deliver.

CFPB Director Rohit Chopra

Let’s hope the CFPB acts quickly to eliminate this greedy fee. But in the meantime, pay attention to your money. Pay attention to your bank balance. Don’t let them take advantage of you! They’re already making BILLIONS of dollars a year. They don’t need to grab your personal money, too.

Please share this information with people who may need to know. Let’s help educate, inform, and protect our friends and family from rip-offs.