Consumer complaint received 2015-11-12
Product: Bank account or service — Checking account
Issue: Problems caused by my funds being low — 
Company: BANK OF AMERICA, NATIONAL ASSOCIATION (FL)

This has happened many times both to me and Bank of America customers -- $ XXXX {$40.00} overdraft charges. I have first written the Florida Attorney General 's office. XXXX XXXX directs me your way. Below is the entire request -- what happened, desired resolution, etc. A global problem for all B of A customers. XXXX XXXX, XXXX XXXX, etc. Here 's the full petition : From : XXXX XXXX [ XXXX : XXXXXXXXXXXX ] Sent : Wednesday, XXXX XXXX, 2015 XXXXTo : 'CFO XXXX XXXX : RE : Bank Overdraft ChargesXXXX, I, like millions of others signed on to Bank of America 's encyclopedia of terms and conditions as a precondition to establishing our mutually beneficial financial relationship, agreeing to pay {$35.00} for every overdraft. Yet so many people simply do not use banks because they do n't eat for the month if they incur a couple overdraft fees. [ Do n't let me get diverted railing at yet deeper bottom feeders such as XXXX. ] My latest situation : an overlooked doctor bill payment of {$48.00} and a check to a friend for a concert ticket for {$47.00} kicked up XXXX {$35.00} O/D fees, totaling {$70.00}. Promised money arrived late. With worse timing, I could have been hit with another {$35.00} O/D fee if, say I 'd charged another {$2.00} for a XXXX, or my {$5.00} automatic payment to NPR had hit when I was overdrawn. If I do n't make it good in five days, I 'm hit with additional fees of similar magnitude. Bad gamble, yes. 
How much does it cost the bank to cover my XXXX checks for three days? Let 's assume they must pay 30 % interest as cost of funds to make my checks good. That 's less than 0.1 % a day. Of course it 's a preposterously high assumed rate. On my deposits I 'm credited nothing, or maybe 0.1 % if I keep a {$3000.00} average balance. Back to their in fact totally nominal interest cost for fronting me, but sticking with the preposterous 30 % interest assumption. On a {$100.00} overdraft, that 's under XXXX cents a day ( = XXXX XXXX 30.00 % / XXXX ). For three day it 's XXXX cents, more like a quarter. The bank collects {$70.00} from me, a return of over XXXX investment. Sure, some customers never make B of A whole. Very few ; they need the checking account to operate their lives, so the vast majority repay. 
Now focus on me -- I auto deposit $ XXXX every month to my checking account, year over year. Pensions. I have had a B of A account for 10+ years. The bank 's risk of getting stiffed by customers such as me is next to nil. The labor and expense of executing an overdraft charge is nil -- the computer system does it automatically. 
The banks ' rationale is " All the other banks charge the same, even more, {$37.00}, XXXX, XXXX -- it 's a competitive market level amount we charge. You should manage your money prudently. Plus you agreed to it, we disclosed it upfront, so where 's your rip? " There exists an extremely simple solution that would cost the bank nearly nothing in the line of risk/getting stiffed, yet eliminate surely 80 % of overdraft fees incurred -- offer a two-day grace period, capped at {$200.00} to cover modest debits. Why did not our US Congress include something similar in its reforms of a few years back? Did the banks ' lobbyists persuade Congressmen they could not survive without continuing and perpetual rivers of overdraft revenue? 
If their overdraft fees are fairly set, why will they not disclose to customers and investors this source of earnings amid their aggregate profits ; why will they not disclose the revenue less expense elements that define the bottom line of this profit center? 
Where is the XXXX analyst who will take up the cudgel for all us marginal consumers who are buttressing the banks ' obeisance to their shareholders? And bailing out their colossal mortgage sins and fines from recent years ' misadventures with XXXX XXXX? Is it you?