How to cut my bank fees?

July 18, 2008 5:17 AM

How can I get these fees reduced?

I have a checking account (TCF Bank, fwiw) on which I recently overdrafted by a couple hundred dollars for a couple days. I was getting low, and I forgot about some automatic payments that were coming due.

Today, I see that I've been hit with a $136 fee, which seems excessive to me.

Has anyone successfully had such fees reduced? Any suggestions for how to argue it?

Thanks!

posted by mpls2 to work & money (11 comments total)

Call them up and explain that this was (hopefully) your first time overdrafting, apologize profusely, offer to sign up for some sort of overdraft protection. Be nice. Don't threaten.
posted by banannafish at 5:26 AM on July 18

Another suggestion, you might also try going to an actual branch (the one you opened the account at) and speak with the manager.
posted by HuronBob at 5:43 AM on July 18

What banannafish said, except also realize that they'll probably try to tell you no. I recently had something almost exactly like this happen, and when I called and explained (poor student, won't happen again, hey can I add overdraft protection I didn't realize existed, etc.), the woman offered to remove one overdraft charge ($35 of the total) because "that's all I can do." So I thanked her, had her do that, and then politely asked to speak to a manager. I re-explained everything to the manager, and told her that I didn't mean to get the person I'd originally spoken to in trouble or anything, in fact she'd been very helpful, but she had implied that she hadn't had power to reverse the fees any further so I wanted to check if a manager would be able to do so. She did.

One other thing that generally helps is to admit when things are your fault. These people work in customer service, which means they must deal with a huge number of nasty, entitled people every day. Admitting that you made a mistake wins you a lot of bonus points, and it puts them in a position where they can feel good about helping you. Politely persistent is my approach to getting anything from customer service, and it's pretty much always worked, but most of the time you need to go up at least one level to access someone who can (or will) have the freedom to make a decision in your favor.

One final thing: I have a friend who worked as a bank teller for a while, and she said that overdraft fees are almost always reversible if you just ask. Your patronage is worth a lot more to the bank than $136.
posted by you're a kitty! at 5:45 AM on July 18 [2 favorites]

What bannanafish said, but with one addition: if you're a girl, cry. If you're not a girl, but you have a girl on the account, get her to call and cry. Seems to make some people incredibly uncomfortable and very willing to take off the charges or do anything to make you stop crying.

Yes, I've had to call about bank fees a few times. The tears were genuine, but they were also helpful. Now I'm a lot more careful. :]
posted by fiercecupcake at 7:19 AM on July 18

Former bank branch manager here. Honesty coupled with pleasantness is what worked on me. If it was your fault, tell me that up front. If it was our fault, then tell me that, too. Either way, be pleasant.
posted by unclejeffy at 7:33 AM on July 18

I got mine reversed once because they deducted my automatic loan payment before adding my direct deposit paycheck. They deducted my loan payment at midnight and credited my paycheck at 5 a.m. That was low and even they had to agree so they waived the fees.

Please do not sign up for overdraft protection. It is a huge rip-off. Nowadays, many banks link it to a credit card they issue. So they put a new low interest credit card in your hands and say any overdrafts will automatically be charged to your card. However, what they don't mention is that the overdrafts are not treated like normal transactions and are usually charged at a much higher interest rate and they cannot be paid of until your regular balance is. Well, if you have a large balance you might not get it paid for 2 or 3 months (or longer) meanwhile those overdraft charges and fees are racking up a huge amounts of interest.

For more on the sneaky things banks do to increase NSF charges, see here:
http://yourfinishrichplan.com/blog/2008/06/04/bank-overdraft-protection-fees-scam-fraud-ripoff-check-charges/
posted by i_love_squirrels at 8:20 AM on July 18

Nthing Bananafish, and un-enthing crying because you are female. I've gotten these fees removed/reduced and I think you need to talk it over with customer service, not resort to playing on sexism.
posted by cashman at 8:29 AM on July 18

Please do not sign up for overdraft protection. It is a huge rip-off. Nowadays, many banks link it to a credit card they issue.

Depends on the bank - mine just goes to my savings account if I overdraw my checking. So at least look into it.
posted by you're a kitty! at 9:26 AM on July 18

Do you all think it would be better to just go the straight apology route, or to also point out how I feel about the fee being usurious? What burns me up the most about this is that if I had overdrawn on one transaction by $1000, I'd have gotten a $36 fee, but overdrawing by $200 with four transactions gets me $136. If I'd have gotten a pack of gum for $0.99, I would have gotten hit with another $36. That's just straight up ridiculous.
posted by mpls2 at 9:44 AM on July 18

Any time I've had such a dispute, whether it be for outrageous fees, mistaken charges, very poor customer service, etc., I've always gotten the best results/satisfaction by writing and sending a bona fide on-paper snail mail letter. I do some research and find the name of an appropriate "higher-up" (today you can often find that information at Hoover's Online) and sent a certififed letter to his/her attention, rather than something generic like "Customer Service Manager".

If you decide to go the letter route, be succint, polite and professional. Clearly describe your problem, explain any extenuating circumstances and why you think the charge is excessive or unfair (you can add the apology if you want) and then ask for an adjustment. I always avoid outright threats, but make suggestions that I might take my business elsewhere if this matter isn't resolved ("I've been a loyal customer of Acme Bank for X years and have been pleased with the service, but in all honesty this situation is tainting my opinion of the company"). Best of luck to you!
posted by Oriole Adams at 10:20 AM on July 18

Do not try to tell them you feel the fees are unfair. You agreed to the fees when you opened the account. They will be unsympathetic to the "unfair" argument. If you don't like the terms of the account, open an account somewhere else where you like the terms better.

The reason that everyone is suggesting taking responsibility for your actions and throwing yourself on their mercy is that a personal connection works. Whining about life being unfair gets old, and CSRs hear it all the time. Honesty is refreshing. Tell them that you screwed up, but that it was the first time, and that it'll never happen again, and ask whether there's any way to get some of the fees reversed.

Then, if you don't like the way your bank does business, find a new bank. Don't do business with organizations you believe to be "usurious." When you switch banks, write them a letter telling them why you are switching. That, not whining to a CSR who has no power over the fee structure, is the way to communicate that you think their fees are unfair.
posted by decathecting at 2:03 PM on July 18