Bank mistakes worth BIG $

[disneymom3]

Yikes, I just went to my bank's online site to check to see if a deposit had cleared and my balance was WAY lower than it should have been. There were all of these charges on there that I couldn't figure out where they would have come from. (DH can only buy so much gas and the man does NOT shop!) Upon looking closely, I realized that 7 of them are duplicate charges! And it is a rinky dink local bank so there is of course no one for me to talk to about this right now!! This is making my balance hit dangerously low. There shouldn't be anything else out there, but MAN! If they decide to creat some more charges and start in with overdraft fees, I am going to get very grumpy with them.

Just needed to vent!

 

[swilshire]

Our local credit union "decided" one day to charge us all an $11,000 fee. Needless to say, many of us went into overdraft mode. Luckily, by the time they opened they had discovered the error and were taking steps to correct it. Lots of nervous members in the meantime.

Sheila

 

[oogieboogie]

Did the charges just come on today? Sometimes the companies you did business with will put a hold for the amount of the charges, then put the actual charges thru, then later on take the hold off. This happens most times at restaurants, gas stations, grocery stores.

Before panicking, wait 2 days. If the duplicate charges go off, you're good to go. If the charges are still there, then go ahead and dispute the charges with the bank.

 

[PrincessDadx2]

Did the charges just come on today? Sometimes the companies you did business with will put a hold for the amount of the charges, then put the actual charges thru, then later on take the hold off. This happens most times at restaurants, gas stations, grocery stores.

This is a big problem with debit cards if you keep a low balance in your account. A lot of gas stations will just put a hold of $50 on your account because they do not know the exact amount you will charge, even if you are only getting $5 in gas. If you only have $45 in your account your card will be denied, if you have $60 in your account your next charge for $20 will be denied until the hold is released even though you only spent $5. Something to remember.

 

[Brian Noble]

And if your bank is sneaky, they won't decline the charge. Instead, they will "advance" you the money, for a hefty fee.

 

[FallDisney]

I work in a bank ensuring compliance with Federal regulations. Post above about putting a hold on your account for a certain amount is absolutely correct, and it can be an issue. A lot of gas stations are putting $50 holds on cards due to the SUV craze and high gas prices. They want to ensure they're paid. If you're concerned that the gas station is putting a hold on the funds, you might ask them what their standard hold amount is. You might also ask the bank if it's a "hard" hold or a "soft" hold. "Hard" means you do not have access to that money until the charge has cleared your account. "Soft" means that the gas station has spoken for the money, but you still have access to it. The soft hold was common a few years ago, but as people overdrew their accounts with debit cards, banks moved to hard holds.

If it's not an issue of a "hold", and multiple charges appear on your statement, you have a Regulation E error, and should not be charged any overdraft fees. This is a Federal requirement. If you have any trouble with the bank on this, ask for a copy of their Error Resolution Procedures. They're required to provide this at account opening, so most likely they have some in stock. If they don't help, ask who their regulator is. The website for Office of the Comptroller of the Currency has a good explaination of this. www.occ.treas.gov. Knowing your rights under the regulation is very helpful and will most likely bring you the needed results should the bank drag it's feet. If it's an issue of a hold, the bank may be willing to work with you. Just be nice and your request. Remember, even bankers are human and are less willing to do things for customers who scream and yell or act nasty.

Good luck!

 

[mrsbornkuntry]

This is good information, I use my debit card as a mastercard at the gas station all the time, but I wasn't aware that it worked that way. Good to know.

 

[Buttercup26]

Yup - most gas stations "hold" $50. While it usually clears the next day, it can take as long as 4 banking days for that hold to clear. Many of them do a 'hard' hold, meaning you do not have access to that $50 until the acutal charge is posted and the "hold" is cleared.

 

[FallDisney]

This is true not only of gas stations, but also hotels, airlines and, rental car companies (if you find one that takes debit cards).

 

[jgmklmhem]

This is why I put everything on my Disney Visa and pay it off every month. At least with the Credit Card most mistakes are corrected before i have to pay the bill and don't have to worry about over drawing my account or going over my limit since i pay it off every month. I also don't recommend using the debit card for online stuff because I had someone get a hold of the number somehow and took my account into overdraft once. I eventually got the money replaced...but on a CC my money would have never left the bank.

 

[disneymom3]

Just an update. I called the bank today and they were aware of the problem. Some computer glitch they are working on fixing. They said that any possible fees that would crop up would be reimbursed. Sounds like they plan to clear everything that comes through and then they will not apply the overdraft charges. Sometimes having a small bank is a good thing afterall.

Interesting about the gas station charges. I have never had that happen, but those hotel holds can be crazy! What I think is really nuts for the hotels is that if you pay cash, and dont' want to leave a deposit for extra charges, they don't make you, but they always reserve an extra amount on the credit card. Why is that I wonder?

 

[Tiggerlover91]

Yup - most gas stations "hold" $50. While it usually clears the next day, it can take as long as 4 banking days for that hold to clear. Many of them do a 'hard' hold, meaning you do not have access to that $50 until the acutal charge is posted and the "hold" is cleared.

This is not true in the case of my bank. My bank only authorizes $1 until the actual charge comes through. I've called and asked them about it when I can't get balances to balance and was told in cases of using my debit card at gas station pumps, Amsouth authorizes $1 until the actual charge comes through. I guess this is a blessing for me as I wouldn't know how to act if they held $50 of my money for a $20 purchase.

 

[summerrluvv]

This is a big problem with debit cards if you keep a low balance in your account. A lot of gas stations will just put a hold of $50 on your account because they do not know the exact amount you will charge, even if you are only getting $5 in gas. If you only have $45 in your account your card will be denied, if you have $60 in your account your next charge for $20 will be denied until the hold is released even though you only spent $5. Something to remember.

I get gas all over and have never had that problem when using my debit card. They authorize $1.00 and never more.

 

[zippehsmom]

They have also only charged me $1 for gas when I use my debit card, no matter what gas station I have used.

Another girl at work said that they hold $50 on her, so I have no idea if there is a rhyme or reason to why they do this.

zippehsmom

 

[Skatermom23]

They have also only charged me $1 for gas when I use my debit card, no matter what gas station I have used.

Another girl at work said that they hold $50 on her, so I have no idea if there is a rhyme or reason to why they do this.

zippehsmom

I also work at a bank and they only charge $1. This is just to make sure it is a valid account. I have worked in the Banking industry for over 20 years and I still do not own a debit card. I refuse to have one just based on the problems I see that people have with them!!! You don't want to mess with my money!!!!

 

[FallDisney]

Actually, the gas station you're dealing with decides how much to hold. Same is true for any merchant. The bank doesn't decide this at all. It only processes the transactions.

 

[FayeW]

In Canada, they amount they hold on gas purchases depends on the option you choose when you are pumping your gas. For example, if I am "filling up" they will authorize for up to $75.00, since they don't know how much gas I will use, but if I select a pre-set amount, like $10 or $20, then they authorize for only that amount because they know the exact amount of the purchase. This is only an issue if you are paying at the pump, if you go inside to pay like you would with cash, again, it is only for the amount of the actual purchase.

 

[DeterminedOne]

Speaking of debit cards ... for my birthday I purchased a $168 purse (kind of a fettish) using my debit card. The sales clerk rang it through twice, so it was over $300. She voided that sale and started over, charging the correct $168 plus tax. All those charges (over $500) stayed on my account for 4 days! The bank said there was nothing they could do and they were obligated to wait the four days to see if the charge would go through. Lesson learned! I never use my debit card for large purchases. Anything over $50, I say forget it and use the Disney Visa instead.

 

[NewEnglandDisney]

The VERY same thing happened to me a couple of weeks ago. All of a sudden my bank balance was WAY too low, and all the charges I had made in the past week were doubled (went through twice). The bank did fix it promptly - but it was a pain in the behind nontheless and made me feel much less safe about having my money there.

As to the pre-auth charge from gas stations, most automated systems now let you choose "debit or credit" for this very reason. If you choose debit it will ask your pin, and the money is directly transfered - no wait. This will also save you in grocery stores/etc. - and since you entered your pin you won't have to sign for it (though less educated clerks still ask you).

I will only use my debit card at places that offer this feature. I didn't used to (since you have to do the extra step of enterting in your PIN, which I didn't care for at first), but once I realized that it works like a regular, instant transaction that way, it's all I'll do now. Sure saves the hassle of $1 showing up for a few days, waiting for the transaction to go through. These days using online banking that can be VERY annoying.

N.E.D.

 

[seashoreCM]

If the bank had a computer glitch and your other checks bounce you can go after the bank for late fees and collection charges and penalties the person you wrote the bounced check to may impose. Sometimes the bank can negotiate those fees down, make the bank write the letters and do the legwork.

I also question why debit cards are so popular, given all the problems. I don't use one (except one from PayPal used to consume the funds from my PayPal kitty where my eBay sales proceeds go, where the only other ways to get that money is to buy things on eBay or ask PayPal periodically for a proceeds check which is more cumbersome).

Check your bank rules to find out whether "using your debit card normally with PIN" costs more (with a fee) than "using your debit card as a credit card" by pushing the credit button on the gas pump (the money still comes out of your checking acount and almost as fast). Also you might get points or airline miles using the debit card one way but not the other and this may vary as different promotions are advertised.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm
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