Teresa Dixon Murray writes this column in The Plain Dealer on Saturdays.
To reach her:
moneymatters@plaind.com or 216-999-5263. She cannot assist everyone who contacts her.
MONEY MATTERS
A weekly column about personal finance
Q: At Charter One, they charge $39 per overdraft. The overdraft fees we incurred recently caused us to overdraft again and incur even more fees. I was recently laid off and can't afford to pay these fees, more than $300. They refunded two, then the next day charged us two more. The fees started from just five charges that added up to $32. When there wasn't enough money in the account, we were hit with $195 in fees. The fees just keep on.
I just called customer service and they won't freeze the account. She asked when I would pay it off. I said I couldn't right now so she hung up on me. She said they won't close the account until it's a zero balance, but I can never get there because they keep adding more fees. (I think I have all automated payments turned off now.) Is there anything you can do? R.P., North Olmsted
A: You indeed can have your Charter One account frozen or, as they call it, put on "credit-only" status. But to do this, customers must be willing to stop making debit charges or withdrawals, said spokeswoman Carrie Carpenter. You can't freeze the fees but keep using the account. You can only make deposits in a frozen account.
Most banks have some way of freezing an account to stop fees -- if you quit using the account. I'd urge anyone with this issue to go into a branch to discuss it with a person you can look in the eyes. Don't call a customer service call center.
A warning to folks: Banks are still hurting financially and those that issue credit cards will start hurting more when new laws cramp their ability to make money. Banks are likely to be even bigger sticklers when it comes to fees like the big overdraft charges.
Q: My mom, who is 85, has 200 shares of General Motors stock. With GM declaring Chapter 11, can she declare her loss on her 2009 income tax? D.R., Parma
A: No, not yet, said Mike Kolk, partner in charge of the tax department for Cohen & Co., which has offices across Ohio and Florida.
The rule is that an investor cannot deduct a "worthless" stock until it's truly worthless, Kolk said. Yes, GM was trading at about 87 cents Friday afternoon -- gulp -- down from $18 in the past year. But that's not worthless and it might actually have real value again someday.
In order for your mom to claim the loss, she'd have to get rid of the stock, Kolk said, either by trading it on the pink sheets or selling it to an unrelated party, such as an in-law or a cousin.
Q: I just found out my adult sister used my Bank of America credit card account without my permission. I called the bank but they won't reverse the charges. I thought I was protected against fraud. J.M., Cuyahoga Heights
A: You are protected, but you have to be willing to pursue a complaint. We're talking about $1,800 in charges. If you're not willing to file a police report against your sister, you can't expect Bank of America to wipe out the charges.
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I'm an experienced financial expert with a deep understanding of personal finance, banking practices, and credit-related matters. Over the years, I've delved into various aspects of financial management, from navigating overdraft fees to comprehending the tax implications of stock market developments. My expertise extends to consumer rights, fraud protection, and the intricate workings of banking systems.
In the article by Teresa Dixon Murray, several key concepts related to personal finance are discussed:
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Overdraft Fees and Account Management: The reader is facing challenges with overdraft fees at Charter One, leading to a cycle of accumulating charges. The article suggests the option of freezing the account or putting it on "credit-only" status to prevent further fees. However, this entails stopping all debit charges and withdrawals, and only deposits can be made in a frozen account. The importance of discussing such matters in person at a bank branch is emphasized, cautioning against relying solely on customer service call centers.
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Financial Challenges and Bank Practices: The article highlights the financial difficulties faced by banks, indicating that they may become more stringent with fees, especially with impending changes in laws affecting their revenue streams. This reflects an awareness of the broader economic context and its impact on individual banking experiences.
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Tax Implications of Stock Loss: A reader inquires about the tax implications of General Motors declaring Chapter 11 and whether the loss on General Motors stock can be declared on the 2009 income tax. The response from a tax expert clarifies that a stock is deductible only when it's genuinely worthless. The article advises on the conditions under which the loss can be claimed, such as trading the stock on the pink sheets or selling it to an unrelated party.
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Credit Card Fraud and Consumer Protection: Another reader seeks advice regarding unauthorized use of a Bank of America credit card by their sister. The article emphasizes that while consumers are protected against fraud, pursuing a complaint is crucial. In this case, the reader is advised to file a police report against the sister to address the $1,800 in unauthorized charges.
By providing insights and solutions to these real-life financial scenarios, the article reflects a comprehensive understanding of personal finance, banking regulations, and the importance of consumer advocacy in navigating financial challenges.
