Your Debit Card Can Wipe You Out

You may think that banks won't charge you if you debit more than what's in your account. But they do.

The beauty part is that you don't even know you're enrolled in the program with the policies you violate. The banks automatically put you in what is known as an "overdraft protection program." They justify this latest method of fleecing the public by saying that the system benefits consumers by allowing them to keep spending when they're out of money. Thanks a lot.

For that privilege, you are charged an average of $25 for an overdraft. But you don't know about it until you get your statement. It's not zero, it's in negative territory, because as soon as you slip below the line, you're tagged. And in many cases banks have a tiered system, which means the first time $25, second time $35, and onward and upward. A soda can end up costing you $150.

It's funny that this program is called "overdraft protection." Quite a protection racket. Tony Soprano would be pleased. Pay up or we'll indenture you.

Another funny assertion in stories like these is that the public will be angered by the latest version of the banks robbing the poor (reverse Robin Hood syndrome). Since the public doesn't know about it, how can it be angry?