Banks can decide whether overdone customers get access to the stimulus money they have deposited into their accounts, but which they have used different approaches

Morgan Banke has had just enough money in her bank account every month since August to pay for either her rent or her auto insurance.The unemployed mother of two has relied on her bank, the Dupaco Community Credit Union in Dubuque, Iowa, to make up the difference But every time they make that choice the bank charges their overdraft fee of $ 28 Your account is $ 780 in the red

When she heard that the federal government was working on a new stimulus package, Dr Banke called Dupaco and asked if he would waive the outstanding fees. If it did, she hoped she could open up the stimulus fund. Bank officials said no

Ms. Banke, who sold her possessions on Facebook to make ends meet, doesn’t know if she will get any of the money “When we were told we were getting another incentive, I was excited”, she said now she is dejected

Towards the end of 2020, the federal government’s pledged $ 600, due to appear in bank accounts starting this week, is welcome news for millions of Americans in need whose finances have been devastated by the coronavirus after nine months of economic crisis Pandemic

But for people whose bank accounts are overdrawn, it depends on what the country’s banks are – like Ms. Dr Banks case is also the creditors in overdrawn accounts – go for it Banks have this power because for the vast majority of people the stimulus money is deposited in the same bank accounts that they receive tax refunds

Last week, the largest US banks pledged to temporarily zero their customers’ negative balances so they can access their stimulus money and use it for the spending that seems most urgent, including negative balances Rule the various fees that banks put on customer accounts so customers can withdraw more money than they have

Representatives from Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo said banks would credit customer accounts about a month after receiving the money, after which the banks reset the accounts to their previous overdrawn status in retaliation for relief that they offered to their customers when the first round of stimulus money was distributed in April

Major regional banks, including Fifth Third Bancorp, Truist (the body formed by the combination of SunTrust and BB&T), PNC Financial Services, and US Bank, are following suit

However, some regional and community banks, which often serve areas where there is little competition, including poor neighborhoods and rural communities, take different approaches. Some smaller banks say they review customer inquiries on a case-by-case basis

Citizens Bank, a regional bank that primarily serves customers in the northeast, said it would temporarily zero all customer accounts, but only if customers call and specifically request it. A citizen spokesman said the bank would Email the customer to remind them that the option is available

The different approaches used by smaller banks often place customers under a duty of figuring out what options they have – when many are already stressed by the huge financial challenges they face. Consumer income fell in November; The layoffs continue, especially in hard-hit industries like restaurants and the unemployment rate remains high

Dupaco, the credit union, in which Frau The 25-year-old bank has had an account for six years Since working as a bartender in Dubuque, there hasn’t been a blanket policy for customers. “We work individually with members to clarify the specific situation,” said Dave Klavitter, a Dupaco spokesman who declined to speak to Ms. Bankes Case

Ms. Bankes waived overdraft fees on three previous occasions when bank officials were unwilling to re-waive her when she recently called her to apply for one, Ms. Banke said even though the bank didn’t say they’d pay the 600- US Dollar Economic Fund is not received, Dr Banke, who lives in Madison, Wisconsin, remains concerned that her 5-month-old son has a respiratory illness. She will not be able to work. She plans to ask Dupaco if they can temporarily zero her balance

Temporary bank forgiveness may not be enough, especially for those in dire financial straits since the coronavirus outbreak, one in four people in the US has problems, monthly, according to a study published by the Pew Research Center in late September Paying bills One in three people is dipped into savings or retirement accounts One in six people have borrowed from family or friends to pay bills

Banking fees add to the problems caused by the pandemic for some Americans, according to the Center for Responsible Lending, major banks charged more than $ 11 billion in overdraft fees from their customers in 2019, with 9 percent of customers charging more than 80 percent of fees Big bank customers paid $ 6 billion in overdraft fees in the first nine months of 2020, according to Rebecca Borné, a researcher at the nonprofit advocating better treatment by financial institutions for consumers

The total amount of penalty fees bank customers paid in 2020 could be lower than last year However, with such a large chunk of the fines paid by such a small subset of customers, those charges will affect their fees. Finances will most likely be far worse this year

Aside from the temporary truces some banks have struck with their clients in connection with the economic reviews, banks haven’t changed their overdraft policies during the pandemic, Ms. Borné said, “Charging inappropriately high fees, multiple fees per day, expanded Fees and other practices that manipulate fees to maximize fees – these practices hurt those who struggle the most, “she said

On Christmas Eve, Andrew Shorts, an artist based in Ogden, Utah, made an effort to pay his electricity bill so he wouldn’t lose electricity and heat, Mr. Shorts, who creates murals and graphic design projects for local businesses, was made from his account with Zions Bank, a Salt Lake City-based lender, on hold as a rapid fire of auto-deductions on household bills this fall slipped its $ 150 balance into negative territory

When he called Zion two days before Christmas, a representative told him that he would likely have to pay the bank what he owed and settle the rest of the fact that the bank changed its policy after President Trump signed the stimulus plan on Tuesday A Spokesman said Zions would keep all negative balances up to 2 for 30 daysZero $ 000 so customers get their stimulus money

Mr Shorts described the $ 600 stimulus payment as “the equivalent of a pool noodle while my wife, child, myself, and my now crippled business drown in the open sea, but he still wants the money in the meantime, scraping together just enough to keep his utility bill.” to pay

On the day Congress passed the latest stimulus laws last week, Misha Roberts, a 26-year-old student at Ohio State University, couldn’t bring herself to log into her PNC online account and check the balance look up you knew it was somewhere between 1200 and 1$ 700 was negative thanks to a combination of bills for basic expenses she couldn’t afford, automatically deducted from her account, and overdraft fees

Some banks have closed accounts that have exceeded their balance A PNC spokeswoman said either the I in cases where accounts were recently closedR.S. would send the customer a check or PNC would let the customer use another existing account to receive the money

Ms. Roberts, who wants to be a nurse, works for college and has already had to drop out several times after running out of money. She worked overnight as a housekeeper for two years, making $ 1050 an hour.But when the pandemic hit, it started Company that sent them to care for the elderly, losing customers

“Fewer hours mean less money, and my work environment was sometimes very tense,” said Dr Said Roberts

She recently resigned and is now spending the weekends cleaning the common areas, including the gym, communal kitchens, stairwells, and lobby, in the apartment building she lives in She makes $ 15 an hour In an email on Monday, she said of the $ 600 incentive, “I really need it or I might be forced to quit school”

Late on Tuesday after PNC learned that its customers’ overdrafts were being temporarily zeroed, Dr Roberts finally gathered the courage to look at her balance, but when she tried to log in, she said she was blocked. PNC had closed her account

How do I get a stimulus check? When do I get my stimulus? How high is the stimulus check?

World news – USA – Your finances are in ruins, customers fear banks are holding back stimulus checks

Source: https://www.nytimes.com/2020/12/31/business/stimulus-checks-overdraft.html