How Banks Work (#15 in a Series: Chase Debit Cards)

“Your Chase Checking account has a feature called Chase Debit Card Overdraft CoverageSM. Soon, we can no longer provide this coverage automatically — if you want to keep it, you need to tell us.” Aww, you can no longer provide it? Well… okay!

What’s that, you say?

“With Chase Debit Card Overdraft Coverage, we may approve everyday debit card transactions for you, at our discretion, when you don’t have sufficient available funds. This may include times when funds from your deposit are not available or when you cannot make a deposit until later that same business day.” [“Are not available” = “we’re using your money.” “May” = “may”!]

DO GO ON.

“We will charge an insufficient funds/overdraft fee of $34 each time we pay an overdraft created by check, ACH, in-person withdrawal, debit card transaction or other electronic means. We will charge a returned item fee of $34 for any check or ACH transaction that is returned because your account had insufficient funds. The most you would pay is three fees per day for insufficient funds or returned items, no matter the number of transactions.” [So, if one accidentally overdrafts, not noticing, and makes multiple purchases, one will rack up $102.]

• “Also, each time your account is overdrawn for 5 consecutive business days, we will charge you an additional $15.” [Does that include day one? Does that make it $117? Unclear!]

• “Once an overdraft has occurred, you are obligated to bring your account to a positive balance promptly.” [VAGUE! How soon is promptly?]

• “Whether your overdraft will be paid is at Chase’s discretion, and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have had excessive overdrafts.” [Strangely not vague actually!]

• “If you have sufficient funds available under Chase Overdraft Protection, funds will automatically be transferred from your Chase savings account, credit card or home equity line of credit (except Texas) to cover your overdraft purchases. Chase Overdraft Protection may be subject to a credit approval. Fees may apply, including a $10 transfer fee.” [That costs a bank $10 to do? Gosh, it must be expensive running a bank.]

• “Whether you have Chase Debit Card Overdraft Coverage on your checking account will not affect how we treat your recurring debit card transactions (such as a gym membership). In particular, we may, at our discretion, authorize and pay a recurring debit card transaction that causes an overdraft and charge an insufficient funds/overdraft fee even if you do not maintain Chase Debit Card Overdraft Coverage on your account.” [I’m sorry, you what now? So… having a debit card actually autoenrolls one in overdraft coverage for recurring payments? Then why am I reading all of this and now opting out???]

Because, right: NO THANK YOU.

“We want you to fully understand the potential consequences of removing Chase Debit Card Overdraft Coverage from your account so you can make sure this decision is right for you.”

Well, I was pretty sure already that I didn’t want it? But heck! I would like to fully understand!

“Removing your coverage means:

* Everyday debit card purchases will be denied if you don’t have sufficient funds.” [That sounds reasonable! It being a DEBIT CARD and all!]

* “You may need to make sufficient deposits in advance so that everyday debit card purchases get approved.” [Right, you will continue to hold deposits for between 3 and 5 business days and do things with my money until eventually someone makes that illegal, that’s fine, I expect no better from a bank.]

* “If you don’t have sufficient funds in your account, or available under Overdraft Protection, you will not be able to use your debit card.” [Right, because it’s… a debit card! Not a Chase Gets to Charge Lots of Fees card! Or… IS IT?]