Matrix (Personal Finance)


Old 07-13-06, 07:36 AM
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Join Date: Aug 2003
Location: KY/OH
Posts: 3,523
Matrix (Personal Finance)

If this is a topic that should be merged with another than do so to help anyone who reads it.

Matrix is a word used in the banking business (as I was told) that is the distance between your zero balance and the cutoff at where the bank will not pay any disbursements beyond this limit.

In essence, the bank is allowing you to overdraw your account as a way to make money indirectly by your user habits of the account. If you make a point of doing this knowing you will be putting funds into the account right away, this works. But if you are not aware of this set amount, the bank can just keep hammering you with overdraft fees and charges incoming to your account that is allowing you spend freely.

I've known this for a number of years but until recently I checked my 3 accounts at my bank and found out that all 3 accounts were set at $1600.00 each meaning that the bank will allow all of these charges up this amount to overdraw your account.

That means that if anyone happened to get my cards and start using them in a short/fast period of time, even though I had $100 in each account, the spender could draw over $5000 before the bank throws the brakes on the situation.

I was approached with hesitation today from my bank when I demanded to "zero out" my matrix's on all three accounts. I believe they did this because they know they make money on the difference after zero if I decide to walk the line of my zero balance.

The great thing about all of this is that when you go to purchase anything with a debit card straight through that account, it will automatically stop your buying at zero balance. Further stopping anyone from removing more funds than you have to begin with.

The teller came back with a weak statement that the merchant has 30 days to reimburse fraudulent charges and the bank has to revive the account within 5 days of such action. But I can tell you from a reality point of view that it wouldn't be as cut and dry as they are stating. Total chaos would be a better word for the situation and that account most likely will freeze until all parties are at agreement with the final outcome. Outcome meaning the bank made a mint in the process of the whole situation.

Why else would I of had opposition this morning in doing something to protect me financially?

I figure if anyone who reads this investigates their personal bank accounts and finds out what their matrix would be shocked that some of those limits are set extremely high. High as in $5000 to $7000 depending on how much money you move in large amounts.

Mods if this could be done, I figured this was a good topic in "Chats and Whines"

If you could it would be nice to see this thread posted in both for all that don't know of these banking practices.
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Old 07-24-06, 10:36 AM
Join Date: Sep 2005
Location: Where the cows roam, CA
Posts: 2,204
Thanks Dunbar Plumber! Sorry it took me so long but I'm copying this to chat's and whines. Great info.

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