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MSN Money's article on when banks turn evil


Nothing hurts a bank deal more than being charged with fees. With more and more bank fees, you have to be careful. This MSN Money article describes some of the worst fees and banking practices. And it also has some good advice to avoid them. Here's a summary of their list:
  • Checks clear almost immediately; deposits take days.
  • Largest checks processed first which can increase the number of overdraft fees
  • Charging for potential overdrafts
  • High fees and interest from Courtesy overdrafts
  • Large fees for using personal finance software
  • Closing accounts when credit score drops

On the last bad practice, the article mentioned the incident at ING Direct when many Electric Orange customers received emails telling them their checking accounts would be closed due to their low credit scores. This turned out to be a mistake by ING. According to ING, the bank only uses credit scores to determine the size of the customer's overdraft line of credit.

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Wesley   |     |   Comment #1
excellent article, thanks for sharing! I'm a big fan of your site.
Justin   |     |   Comment #2
hmm.. speaking to ING Direct Electric Orange Line of Credit, I just found out that they will pull a hard credit check when you apply to open this account (written in FAQ). They didn't do hard credit pull when I opened mine in the January and that's one of the reason I liked to open it. It seems they've changed their policy afterward. I wouldn't open a checking account and get hit with my credit score if I were to apply for this account now.
Banking Guy
Banking Guy   |     |   Comment #3
Thanks for the info. You are right that this has changed. I just found the following in ING's FAQs:

As part of your application, ING DIRECT will obtain information about you from a consumer credit reporting agency (a “hard pull”) to confirm that you are eligible for Electric Orange.

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