Comments on: Review: Gotcha Capitalism

By: Blake

Blake — Tue, 05 Feb 2008 18:01:55 +0000

Penalties, late fees, hidden charges… we’re lining the pockets of credit card companies with $8 billion in fees every year. Where is the love??? Go to http://www.creditcardreform.org and with one click you can send a Valentine’s postcard to your Representative and Senators telling them it’s time to kiss credit card rip-offs goodbye! Consumers Union will hand deliver your postcards on Valentine’s day to tell your legislators it’s time for real reforms in credit card company practices.

By: jon

jon — Tue, 29 Jan 2008 23:07:47 +0000

The overdraft fee is a $1.00 fee some banks and credit unions charge each time they transfer your money from your savings or credit card account to your checking account.

By: earthprime2

earthprime2 — Mon, 28 Jan 2008 21:08:28 +0000

I called the cable company to make some changes in service, and found out quite by accident that the “magazine” they send every month (and I always throw away, unread) is NOT free. I was a little perturbed, to say the least.

By: vh

vh — Sat, 26 Jan 2008 15:06:01 +0000

Overdraft fee? He must be talking about the interest charged if you do bounce a check or EFT. Overdraft protection is really just a line of credit, and so when the bank covers your overdraft, it’s lending you money. Naturally, you’ll pay for the loan. The sooner you cover the overdraft, the less interest you have to pay.

When the Great Desert University switched its payroll to PeopleSoft without bothering to test the system to see if it worked, many people didn’t get paid at all and others received a fraction of their pay. In my case, though I got my pay, each of the first 20 paychecks contained errors (don’t get me started on the W-2 the chuckleheads sent!). Since mine is a single-income household and if I miss a paycheck I can’t pay the bills, I went to the credit union and got overdraft protection in the amount of one month’s salary. I’ve never been charged a penny for it.

By: Lisa Spinelli

Lisa Spinelli — Sat, 26 Jan 2008 11:47:48 +0000

I’ve put this on my “books to buy” list. The idea of making money off of people by purposefully deceiving them has always irked me. I get exceptionally angry when I see older people on limited incomes being taken advantage of.

Lisa

By: George

George — Fri, 25 Jan 2008 23:57:57 +0000

Should be required reading for every youngster who thinks they’re ready for the real world…

By: Frugal Dad

Frugal Dad — Fri, 25 Jan 2008 18:28:17 +0000

This sounds like every “frugal dad’s” dream! Thanks for reviewing this one. The tips under “Sneaky Fees” probably pays for the book alone.

By: skywind

skywind — Fri, 25 Jan 2008 18:27:24 +0000

My bank will transfer money from my HELOC to cover an overdraft, at no charge to me (except the HELOC interest rate on the transfer.

By: Money Blue Book

Money Blue Book — Fri, 25 Jan 2008 18:16:55 +0000

Well the best solution is just to be aware that gotchas are everywhere. I know fine prints are always present so I scrutinize like crazy for them.

By: Steve W

Steve W — Fri, 25 Jan 2008 17:48:01 +0000

USAA’s no-fee internet bank (highly recommended) has free overdraft. Funds can come from your USAA Savings account, or credit card.

USAA service overall is AWESOME. (No, I don’t get anything from USAA for recommending them.)

By: Louise

Louise — Fri, 25 Jan 2008 17:10:06 +0000

What I’m saying is, I’ve never heard of a banks that charges truly optional overdraft or overdraft protection fees.

By: Louise

Louise — Fri, 25 Jan 2008 17:04:45 +0000

I think the overdraft thing sounds weird too. At WaMu, there is an overdraft fee for any charge that overdrafts your account. You can opt out of the overdraft protection, but then you get hit with a non-sufficient funds fee, which is costs the same as the overdraft fee. The only benefit I can see to opting out of the overdraft protection is if you have a habit of making lots of different charges when you don’t have the money to cover it. Your card would be declined on the first charge instead of being hit with an OD fee for every transaction.

By: jstn

jstn — Fri, 25 Jan 2008 16:20:36 +0000

A great tip for internet service: If you do not have a home land-lane ask for a “Dry Loop” DSL line. They run about $20 a month and are a very good deal. You won’t find this advertised on AT&T’s site… ;)

As for the gift cards, as long as the gift is backed by the Store (Ex. Best Buy, or Wal-Mart) the card is legally good for LIFE with no exceptions. However, if the card is backed by a bank or credit card company (like Amex or Visa, among others) then there are restrictions on how long the card is good for.

By: Mrs. Micah

Mrs. Micah — Fri, 25 Jan 2008 16:10:14 +0000

Steve, now I want to invest in gift cards. ;)

By: Steve W

Steve W — Fri, 25 Jan 2008 15:22:10 +0000

About Gift Cards — a subsidiary of my company is in the gift-card business for other businesses (i.e. Starbuck’s doesn’t produce & manage Starbuck’s gift cards; companies like mine do).

We make a mint, a huge margin, on credit “never-spent” on gift-cards. It couldn’t be easier to make money. You give us $20 for a gift card; you gift it to someone else who spends $18 then loses or throws away the card. We do almost nothing and make 10% plus what Starbucks pays us.

Imagine a $0.00 fee mutual fund that paid 10% with almost no risk?

That’s the gift-card transaction management business.

By: Jonathan

Jonathan — Fri, 25 Jan 2008 14:42:22 +0000

I assume the book is talking about monthly fees just to have the overdraft protection? This seems strange to me. I have yet to be with a bank that charges for overdraft protection. In fact, right now I am with a bank that gives all customers a free line of credit for overdraft protection. I’m pretty careful with my money and up to date on all my balances and even I have almost overdrawn a few times by mistake. If you can get the protection for free then choosing to not have it seems like a bad choice.

By: The Saving Freak

The Saving Freak — Fri, 25 Jan 2008 14:39:42 +0000

You pretty much have to watch any service provider you work with these days. Banks are the worst. I always suggest checking out your local credit unions because they have lower fees nine times out of ten.