odd question...it used to be that you couldn't overdraw your credit cards, and they would simply be declined. that embarassed people, which lead to dissatisfaction with the product, so overage fees were created.

checking accounts have always been allowed to overdraft due to the float of checks...also an interesting question, because writing 'hot' checks is against the law, but 'hot' debit transactions are not. I'd say that the law should stay the way it is; otherwise, 'hot' debit transactions may become illegal.

Afterall, the evidence for an overdraft being an accident vs an overdraft being criminal is knowledge of the account balance - are you sure you want the bank to know you know the balance, and are charging anyways?

sometimes it's best for society when everyone looks the other way. besides, overdraft fees should be high to punish people for using money that is not theirs.

I AM 53 YEARS OLD AND I JUST GOT HIT WITH $175.00 IN OVER DRAUGHT FEES. THERE WAS 5 DEBITS ON A MONDAY. THE BANK CHOOSE TO PUT THE LARGEST DEBIT THROUGH FIRST WHICH CAUSED THE OTHER 4 DEBITS TO OVERDRAW.THE 4 SMALLER DEBITS WERE DONE BEFORE THE WEEKEND WHICH SHOULD HAVE LOGICALLY BEEN CHARGED OFF THE ACCOUNT FIRST. I ALSO HAD ASKED THE BANK NOT TO ALLOW MY ACCOUNT TO OVERDRAW.

"Can anyone honestly make some sort of rational argument as to why people shouldn't be warned before they are hit with an overdraft fee?"

Umm...yeah. Pretty easily. That "warning" would come at a cost to the bank. Also, just being a "poor college student" doesn't absolve one from the responsibility of managing your finances. Banks are not charities. Students are free to use cash if they are too incompetent to manage a debit or credit card.

BTW, I'm a full-time, no income, college student. High bank fees are not hard to avoid if you actually demonstrate some responsibility and some modicum of intelligence. And if not, what better time to learn such lessons about financial literacy than in college?

WooHoo, here is an idea, how about charging us for every transaction, kinda like paypal, this way i know exactly how much i am being charged. it is obviouos that the banking industry has found a new way of making "alot" of money real fast. But dont fret, sooner or later when it gets completly out of hand someone will come along and stop it. Untill then, use paypal, keep 100 bucks in the bank account, transfer the rest to paypal: low and behold, no more overdrafts ever. when there is no more money in paypal, it declines immediatly.

I agree with you danni, pre-payed credit cards like green dot, and Visa Buxx, and the paypal debit card will simply decline your transaction if you don't have the money. The banks have the ability to do it, and personally I would much rather deal with the embarrassment of having my card declined at the grocery than getting hit with a $35 fee.

time for CLASS ACTION!!! A percentage should be charged for overdrafts. PERIOD! If you go over 1.25 they should only get a percentage like 10%.
I am bank poor because of overdraft fees. I deposited to make up for fees but then found out that new fees were pending from the day before so snow ball snow ball snow ball. Now I am working for the bank and loosing out. Overdraft protection. They will not give it to me because of my credit report. Well lets start a class action lawsuit against these banks. We should be informed and given a few days notice before fees are taken, the fees is what caused me to go into overdraft in the first place. If I would have been given a few days notice even one day I could have stopped the snow ball effect and saved my money for other bills like mortgage and gas to work and back, not to mention food.

Yeah, here's a rational arguement. You're provided information in regards to your overdraft protection upon opening the account. You are given the option to request said overdraft protection be removed, however this does not guarantee that you may not be charged a fee, because of the manner in which transactions are authorized and posted to the account. It doesn't matter how old or young you are, nothing prevents you from keeping track of your spending but being lazy. If you think the government should regulate this, why don't you instead ask how to maintain your account and avoid the fees yourself. I personally don't think asking someone else to hold your hand is the answer to being accountable for yourself and your actions. Accept responsibility for your own actions and stop trying to blame someone else.