Consumers Fear Hidden Fees More Than They Do Identity Thieves

One in four adults incurred overdraft fees in the past 12 months, according to a new study by Gartner. One in six adults said they were more upset about hidden fees than getting their identity stolen and accounts jacked by a thief. Probably because you have better chance of getting your money back from the latter than the former.

Banks scarier than criminals for many, survey finds [Red Tape Chronicles]

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  1. alhypo says:

    Do overdraft fees really qualify as “hidden”? I mean, you can’t expect to go negative without some consequences, however disproportionate they may be. I always considered hidden fees to be those that you don’t see coming and could only predict if you actually read the user agreement.

  2. darkclawsofchaos says:

    @alhypo:
    not hiidden realy, but sometimes a bank will reorganize your adebits and credits so you go over, though my bank doesn’t do it often, they tend not update or will remove a purchase and place it on a later date to confuse you and give you a sense of having more money then you really have

  3. IRSistherootofallevil says:

    And those overdraft charges are insane. $18 for a $0.05 overdraft? What’s that for APR? Like…..36000%? That’s worse than payday lending.

  4. ceejeemcbeegee is not here says:

    @darkclawsofchaos: BofA is notorious for this, in addition to only crediting you the first $100 of a deposit and posting the rest the next day. So I give you cash today, but you act like I gave it to you tomorrow? They just reversed this policy in August because of numerous consistent consumer complaints.

    You’re welcome.

  5. amoeba says:

    I would say Overdraft Hidden Fees in someway. I bank with WAMU and in a very tiny numbers (on my monthly statements) it shows how much they’ve increased their fees. from $23.00 (when I opened my account) to $32.00 and I guess they will keep increasing “without” big and bolds numbers. I think people who doesn’t read tiny letters won’t know until they get overdraft. And yes, I am also afraid of having my Identity stolen.

  6. Anonymous says:

    The funny thing about all this – I had the impetus to call my bank (Wells Fargo) and ask them if they could turn off all the overdraft protections and deny all overdrafts to my account (i.e. make it impossible to happen and decline the transaction). They said, no, that is not something they could do for me.

    They had the nerve to charge me a $2 fee for making that phone call.

  7. SadSam says:

    I think this makes sense, mor consumers are jacked by fees than criminals.

    Since, Check 21, overdraft fees are — in a way — hidden since the rules that apply to a customer’s bank account don’t apply to the bank. All checks clear at a much faster rate but the banks are under no obligation to make deposited funds available any faster. In my opinion, Check 21 is the source of the huge uptick in overdraft fees the last few years.

    From Wiki: Although the act greatly reduces the cost to a bank of processing checks, the reduced cost of processing need not be passed onto consumers. Although banks will clear and receive the funds associated with a deposited transaction sooner and the issuer of the check may find that the funds are debited from his account faster, banks are not under an obligation to make these funds available to the account holder that deposited the check any faster. This will increase the opportunity for banks to charge NSF fees to the check issuer who may be surprised at how quickly his account is debited. The bank of deposit may then legally hold the money it received from the issuing bank for a period of days specified by Expedited Funds Availability Act and legally charge overdraft fees for money the bank is holding.

  8. Anonymous says:

    The banking industry makes millions on ‘hidden’ and other little known fees that are rarely ever discussed with clients.