Why do banks charge a fee on "insufficientf unds" when they know there is not enough?

Question

Why do banks charge a fee on "insufficientf unds" when they know there is not enough?

Answer 1

They are charging you a fee because they are doing you a favor by covering the charge for you.  When you write a check that is more than the amount of money in your account, the bank will honor the check (instead of bouncing it), and then you will owe them the difference (plus the fee).  They are, in effect, loaning you money at that point.

Answer 2

True, true. *** holes!

Answer 3

its a scam. they do that to increase profits thats why.  I dont think its right but thats the way they roll.

Answer 4

because they see it as borrowing money..i went thru this c**p last month!!! so this is there way of jus getting money from you!!

i went over by like 25 dollars one week and thinking ok Maybe ill get a 30 fee or something ..

well i went and i was -267$. for everyday that you are minus its thirty dollars..so if i were you id sign up for a OVER DRAFT PROTECTION account.

its free..ask you bank for it ..its where U set up a seperate account and if you go minus they just take it from there and only charge you ONE time 10$..

then theres something you can sign up for ..a credit card from the bank and if you go minus in the bank they just take it off a credit card and you jus pay the card monthly whatever you are minus..

i hope that doesnt confuse you..

Answer 5

Because the more money they can get from you, the happier they are.  

Answer 6

because they're sleazy.

Answer 7

They do this for only one reason, to make profit off of you. How else do you think they make their money? Through the interest that they collect from loans and through charging you whatever they can get their hands on.

Answer 8

to teach you not to spend that much