John Fetterman Shares Personal Story Of Overdrafting His Bank Account While Buying Coffee

4 months ago

During a Senate Banking Committee hearing on Thursday, Sen. John Fetterman (D-PA) questioned witnesses about overdraft fees and housing rental junk fees.

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Transcript

00:00 Fatterman's recognized from Pennsylvania. Thank You mr. Chairman and and I would like to thank my colleague from Connecticut for allowing to do this

00:08 Yes, hi

00:11 Banks seem to really really they love fees like that right I I didn't

00:19 I

00:20 Think it's it's helpful if something happens to you to really understand what a lot of other American

00:27 Consumers have faced that kinds of a thing. I'd say about 18. Well, probably a couple years ago

00:33 I was at a coffee place and and I bought one and then everything went through

00:40 I didn't think anything of it and then I had a notice that that I overdraft my account

00:45 So that was that was a $40 cup of coffee and then I wasn't at a blue bottle

00:52 But but but at any rate so

00:56 Is it pretty kind of it seems kind of crazy that?

00:59 That you would allow your account to be charged for you know

01:07 $35 over a cup of coffee and of course, I didn't really appreciate it. So who's in whose

01:15 And whose interest was that would you think and anyone what do you thought about it?

01:25 So it's in the interest of institutions that want to pad their profits with huge exorbitant fees

01:31 I think we shouldn't forget that during the time when when you were experiencing your not blue bottle coffee overdraft that many institutions were using

01:40 Load up high to low check reordering to actually trigger additional overdrafts. Yeah

01:47 Well, and I that's what I thought and then I called up my bank and I'm like, well, hey

01:51 That's kind of kind of crazy and they're like well actually sir

01:54 We allowed this transaction to occur and you were able to get on with your day

01:59 and and they actually they

02:02 They justify that by saying well

02:04 that's a service that we provided that that you were allowed to get your coffee and get on with your day and

02:09 And then now become very clear that these kinds of fees are a profit center. Is that accurate - oh

02:19 Absolutely, the the data from call reports reveals that the amount of fees coming in off of transaction accounts some cases can be

02:27 20 30 40 percent equivalent to the net income of that financial institution. Those are almost overdraft stores

02:35 And it's it's pure pot profit - I mean, it's no service anything other than it's it's just being nickel-dimed

02:44 I personally don't enjoy that being nickel-dimed

02:48 There are any of you in the the panel. Do you enjoy being nickel-dimed anywhere you go?

02:53 No, sir, no anyone so but now what once was something that was a penalty now has become

03:03 part of their

03:06 Their mission is like to put to that and then this happened just last week in my apartment

03:13 the the DC

03:16 the DC

03:17 Rental market is it's kind of rough and I pay two thousand dollars a month for 500 squares

03:24 And then I left my key on the counter and then I approached the front desk and I'm like

03:29 Could you please let me in so I can get my key and they're like well, absolutely and then they pulled out a form that said

03:35 Well, that's $50. I'm like, oh no. No, I don't need another. I don't need a new key

03:41 I just could you just let me in and they're like, well, that doesn't matter

03:43 That's $50 and I'm like $50 so to let me in and and I really couldn't believe that that someone would charge

03:51 $50 just to open up to just get you get your key and

03:55 And would you agree that that's kind of a junk fee?

04:00 for housing rentals

04:03 Well, yes, absolutely that's that's a junk fee

04:07 I feel bad for the person at the desk who had to follow the corporate policy that requires them to charge that fee

04:13 Well, yeah

04:14 It's not personal against the worker

04:16 but the fact that they they

04:18 Institutionalized this idea that it's gonna we're gonna be $50 for letting you to just get your your key there

04:24 and that seems that's just pure profit and that becomes that too and

04:29 Metaphorically and I know I'm running out of town a time

04:32 But I think that's the same kind of in in the government where you cannot count or create

04:38 like parking tickets and speeding tickets as like as

04:42 Revenue that that should be about for public service or to protect a situation

04:48 And and it's it's in my opinion

04:51 It's it's just gone crazy

04:53 And now when billions and billions of dollar now those kinds of nickel and diming now is part of their their business strategy

05:00 But but thank you for joining me and my time is is off. Thanks, sir

05:05 Senator Van Hollen of Maryland is recognized.

John Fetterman Shares Personal Story Of Overdrafting His Bank Account While Buying Coffee

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