As far as deposited checks becoming available, it’s not just the validity of the funds that matters, but whether it’s a legitimate check. There is so much fraud these days, that if a system were in place that Bank A could pull immediate funds from Bank B when you deposit a check from Bank B, if that check turned out to be counterfeit but the account it was drawn on actually did have funds, then Bank B would be at MORE risk losing money than under the current system. Verifying that funds are there does NOT verify that the check was actually written and authorized by the owner of said account.

Although I write very few checks, I will write one to (for instance) the local handyman who comes by to fix a plumbing problem. He doesn’t have the capability to accept CC or debit card and the check is my proof of payment and dated receipt.

Many instances like this need to be paid by check rather than cash.

Don’t you expect people who drive a car to pay attention to traffic, or do you let them go where they want to go, at any speed, without signalling, with out learning how to operate a car? I suppose it’s OK if they’re too busy shaving or putting on makeup or texting.

Who the heck writes checks today anyway? Why is that such a big deal??! I’d rather a debit get declined rather than processed. I get emails anyway.

That reminds me.. I forgot to pay a bill. My fault. Damn.

Some people really are too busy. The poor especially. Just a week ago, someone I know who is struggling, who trusted the ATM balance, basically just lost their next paycheck due to overdraft fees. (They have 2 jobs, at Fed Ex and with the Census.) That’s huge, and it’s not funny. There are very real reasons why the poor do not trust banks.

Where is the social outrage? Simply put, most people who can do anything about it don’t care. Most reader of this blog just seem so smug that they are oh so clever and it’s not happening to them. The current system is disgusting and anyone who says otherwise is simply naive to the breadth and depth of the unfairness.

As for myself, all I can say is that I’ve never overdrafted as much as when I was in grad school. You figure that one out.

$35 per item has no basis in real life costs to the bank. It has no relevance to transaction costs or assuming risks. I understand that there is a cost, but the current method for calculating it is insane.

I have an Excel spreadsheet with my account balances. It gets updated mostly on paydays, which is also when I pay most of my bills. Again: Account Balance. Money allocated towards expenses. Amount left over. It doesn’t matter how long something takes to officially hit my account, because my Excel balance is always accurate.

I really feel it all comes down to personal responsibility. Does that mean the fees the bank charges are “fair”? Perhaps, not. The interest rates on credit card balances aren’t “fair” either. There are on ton of things in life that are set up to take advantage of people who either don’t care enough or aren’t educated enough to protect themselves. Our legal system attempts to rein in the most egregious examples, but for the most part, the childhood axiom that “Life isn’t fair” holds true.

In saying that, probably the most important thing is educating people on how to manage their finances. I spent several weeks in a high school health class planning and budgeting for an imaginary wedding. Could that time have been better spent discussing daily budgeting and learning basic financial skills that could I could apply for the rest of my life? Probably.

Maybe the problem is that you’re using a debit card. Just use a credit card.

I agree with the part about doing a hard inquiry for overdraft… though even then, they could wait until you actually make use of the overdraft. I think banks like to do hard inquiries because they also offer mortgages; if they can artificially lower your credit score, they can charge you higher interest on a mortgage.