Kimberly writes:
My concern is over another fee that I get nailed with every month that I had never noticed… Not only do I have to pay a federal universal service charge, but the District of Columbia, where I live (obvs), charges me another time – to the tune of $8.90 a month. That seems exorbitant and arbitrary! Not a good combo! What the hell is this and who do we complain to?
While perhaps exorbitant, the fee isn’t arbitrary….
Jack recently got a new phone for one of his AT&T cellphones. In the process, he of course had to extend his contract another two years. When he got his bill, he discovered a mysterious $18 “upgrade fee.” When he called AT&T, they told him it was the standard contract extension charge.
United Airlines CEO Glenn Tilton is determined to wring added lucre from his now-profitable airline. Tilton is considering 250 unpopular ideas, such as charging economy-class passengers a fee to avoid receiving their luggage last, and spinning off United’s already wounded frequent flier program, Mileage Plus.
United appears to be following a strategy set by Air Canada, which gained billions of dollars after it emerged from bankruptcy in 2004 by spinning off its maintenance division and frequent-flier program into separate businesses, analysts say.
The insider who tipped us off about US Bank allowing customers to opt-out of courtesy overdraft protection wrote in again. He further describe how overdrafts and courtesy overdraft protection works, and why he thinks you should avoid them both and their stupid fees too…
An insider tells us the US Bank will let customer opt-out of courtesy overdraft protection. This would mean that if you bounce a charge, you just get charged an NSF fee instead of your account going negative, incurring additional fees, and increasing the likelihood of more checks and charges bouncing. Other banks may offer this already, call to find out.
On Wednesday, the California Supreme Court refused to review two earlier findings, which killed T-Mobile’s final chance at blocking a lawsuit against its early-termination fees and practice of locking phones. This is the third time T-Mobile has tried to stop the case from proceeding, and both a state trial judge and a state appeals court have already rejected T-Mobile’s claims that its customers were required by the terms of their contracts to submit to binding arbitration.
Overdrafting makes the Consumerist very sad, and banks very happy.
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.
If you perform an ATM or debit card transaction that results in your account being overdrafted, many banks will now simply authorize the transaction and slap you with an overdraft fee. A new bill, HR946, would “require banks to give consumers a chance to back out of transactions that might cause them to overdraw their checking accounts,” according to the Kansas City Star.
Since last year’s survey, the average balance requirement to avoid fees on an interest account jumped almost 25 percent, from $2,660.49 to $3,316.60. Imagine keeping more than $3,300 in a low-yielding account, just to avoid fees!
Ew! The good news is that you can still get a free checking account, but it won’t pay interest. There are good options out there, it’ll just take a bit of shopping around. Don’t leave your money in a low-interest account just to avoid fees unless you have a darn good reason for doing so.
DM reports that he was able to get Wells Fargo to reverse all his overdrafts… because his dad has a big Wells Fargo account and was able to call up some company Vice President. Ahem. Three cheers for the power of escalating issues outside of the customer service line, we suppose.
Almost all costs and fees are up at the brick and mortar banks included in Bankrate’s 2007 Checking Account Pricing Study. Average fees reached new peaks across the board.
77-year old Peter Gossels won his 8-year lawsuit against Bank Of America for $10,000 in undisclosed fees the bank assessed when he deposited a large check drawn on a German bank. The elderly lawyer argued that the bank failed to disclose the exchange rate when he conducted the transaction.
Airfarewatchdog released a list of the Top Ten Most Obnoxious Hidden Airline Fees. We love:
6. Getting a refund when a fare goes down
“ConsumerMan” Herb Weisbaum over at MSNBC says that banks have messing around with their late fee structure lately—adding a third tier of pricing, raising fees, etc. Those of you with higher balances might be paying more if you’re late. We think that’s not cool, so we’re posting a round-up of current fees.
Two advocacy groups, the Consumer Federation of America and the Consumers Unions, endorsed a bill yesterday that would limit the amount that wireless, cable, and telephone companies could charge customers for early cancellation of their contract. Specifically, it would require companies to waive cancellation fees for the first 30 days, and pro-rate any fees after the first 30 days (something Verizon already does, but no other mobile carrier that we know of).
Reader Josh sent us an account of Netflix’s pro-consumer, ‘just-say-yes’ customer service that we have lauded in the past. Josh had asked to suspend his account until September 18, but Netflix unexpectedly reactivated his account on September 11, sending his bank account into overdraft. Josh called customer service to ask for an explanation and a refund. He writes:
Bank of America defended raising ATM fees to $3 for non-customers to withdraw from its ATMs by spokesperson Betty Riess spilling this lovely bucket of hogwash:
Part of 
