I need help finding a new bank

[Aurora D]

I have been banking in the same "location" for 20 years. The bank grew from a small local bank and changed hands/names a few years ago. I stuck with it because it was convenient. However, recently I've noticed their customer service is definitely lacking.
I have overdraft protection. I had $80 in my account. I accidently paid my water bill not realizing it would come out the same day. Of course, this was my mistake. Well, in addition to the $200 bill there was a $2 separate service fee. Then a debit came through for Club Penguin for $6 plus their separate 12c service fee. Long story short, the bank processed the payments from highest to lowest so I was overdrawn after the initial debit and accrued 3 extra overdraft fees. I went to speak to the manager about their policy. She said they always process in the order received. I said "How do I know it was received in that order? It seems like a way for the bank to make money" In any case, she wouldn't refund the extra 3 fees because it was not a bank error. When they were a small local bank they would work w/you. Well, not any more.
Sooooo, I'm looking for a bank that processes debits from lowest to highest, doesn't have outrageous fees and genuinely seems to appreciate it's customers. Even the ones without a huge savings account. Anyone out there happy with their bank?

 

[tink713]

Your bank doesn't happen to be Citizens does it? It seems some customers of Citizens Bank are actually filing a law suit against them for doing the exact same thing you just described. Pulling out the larger debits first to profit more. Anyways, I would suggest trying a credit union in your area. Credit unions are smaller (but still Federally Insured) and more about their customers or membership than big banks are. Plus I have never had the issue of them pulling out larger debits first in order to make me overdraft.

 

[snoodledoo]

How about a credit union? I've been with mine for 30+ years.

 

[meghanlea]

well dont go to pnc b/c they do the same thing.

 

[minnie1928]

I've got my flame retardant suit on...so here it goes:

I worked for a community bank until about 2 years ago. At this bank, we discussed overdraft fees until we were all blue in the face. In my opinion, there isn't a 100% right way to do this so that everyone is happy. At one point or another, I believe we gave all these styles a try.

1. Process debits from largest to smallest - this method would ensure that your mortgage payment would receive a higher priority than your quick stop at the 7 Eleven for snacks, for example.

2. Process debits from smallest to largest - this would allow more debits to come through before generating OD fees. However, in this case we would pay for your snacks at the 7 Eleven but your mortgage payment would bounce.

3. Process debits in the order in which they were received/processed - in my mind, I like this one. If you wrote the check/swiped the debit card at 7 Eleven before you made the payment to your mortgage company, then you've already decided which payment was a bigger priority.

When we discussed the various styles, we were constantly trying to find the one method that provided the most benefit to the customer. The last thing we wanted to do was implement a change that would alienate or frustrate our customers. However, as you can see in my examples above...that's a hard thing to accomplish. People operate their finances differently and have different desires/goals.

At this point in time, I'm not sure which method they are currently using. However, if you shop for a new bank based on this criteria alone please remember that they can change their processing method in the future. I think they only need to give notice 30 or 60 days (I can't recall exactly) before implementing the change.

For what it's worth...I think they should refund some of the fees, particularly if this is your first set of overdrafts.

 

[Justsyd2]

I have been banking in the same "location" for 20 years. The bank grew from a small local bank and changed hands/names a few years ago. I stuck with it because it was convenient. However, recently I've noticed their customer service is definitely lacking.
I have overdraft protection. I had $80 in my account. I accidently paid my water bill not realizing it would come out the same day. Of course, this was my mistake. Well, in addition to the $200 bill there was a $2 separate service fee. Then a debit came through for Club Penguin for $6 plus their separate 12c service fee. Long story short, the bank processed the payments from highest to lowest so I was overdrawn after the initial debit and accrued 3 extra overdraft fees. I went to speak to the manager about their policy. She said they always process in the order received. I said "How do I know it was received in that order? It seems like a way for the bank to make money" In any case, she wouldn't refund the extra 3 fees because it was not a bank error. When they were a small local bank they would work w/you. Well, not any more.
Sooooo, I'm looking for a bank that processes debits from lowest to highest, doesn't have outrageous fees and genuinely seems to appreciate it's customers. Even the ones without a huge savings account. Anyone out there happy with their bank?

I feel your pain...I really do, but, be honest with yourself. You made a mistake, and being mad at the bank doesn't help the situation. What did the bank really do wrong? You didn't have enough money for the payments that cleared your account...I'd write this one off as lesson learned.

 

[kaytieeldr]

.

3. Process debits in the order in which they were received/processed - in my mind, I like this one. If you wrote the check/swiped the debit card at 7 Eleven before you made the payment to your mortgage company, then you've already decided which payment was a bigger priority.

But when it's checks - and yes, people DO still pay with checks - none of which are processed until the close of the business day, how do you determine the order received? I mean, if the bank is going to pay enough attention to the transaction to know who the payee is, wouldn't it make the most sense to pay attention to the date written and cover in THAT order?

Size of the payment shouldn't matter to the bank. Say I owe my brother $2,500 and some other bank $190 for my car payment and Reader's Digest $15 for a subscription - and I have $200 in my account. If the bank pays the Reader's Digest check, my car gets repossessed. If they pay the bank, Reader's Digest duns me; if they pay my brother - the MOST understanding of the three entities - I lose the car AND the magazine AND my credit score drops. Why is it the bank's decision?

 

[coolbeans]

almost all banks pay debits largest to highest. i honestly don't think you will find one now that doesn't.. if it's your first time getting fees you should plead ignorance, that you made a mistake, and ask that they can please give you a courtesy refund... the employee should have some authority to do that for you as a courtesy... but if you went in there arguing about how the bank pays items with the employee that is only there to help, trust me you lost the battle before it started.

 

[*pixie*dust*]

almost all banks pay debits largest to highest. i honestly don't think you will find one now that doesn't.. if it's your first time getting fees you should plead ignorance, that you made a mistake, and ask that they can please give you a courtesy refund... the employee should have some authority to do that for you as a courtesy... but if you went in there arguing about how the bank pays items with the employee that is only there to help, trust me you lost the battle before it started.

Great advice coolbeans. ITA!

 

[maidenfairy]

Go to a credit union in your area. You'll probably end up happier.

 

[ohlas]

We have 2 accounts one is at firstmerit they are ok one of the tellers is a real pain and i just refuse to deal with her... the other one is a credit union they are little nicer...

credit union is the first place i go to for loan they have better rates, and if they dont i just try some one else and then the credit union will match that rate, same with cds too....

have over draft protection on both have used it couple of times for got crazy with the xmas spending opps,,,, they covered it i paid the fee oh well happens.

Try a credit union and if you bounced a check get over we all do it some time or another,, just put a reserve in your checking like 1000 min it works for us... unless it xmas and i lose my mind lol

 

[minnie1928]

But when it's checks - and yes, people DO still pay with checks - none of which are processed until the close of the business day, how do you determine the order received? I mean, if the bank is going to pay enough attention to the transaction to know who the payee is, wouldn't it make the most sense to pay attention to the date written and cover in THAT order?

Size of the payment shouldn't matter to the bank. Say I owe my brother $2,500 and some other bank $190 for my car payment and Reader's Digest $15 for a subscription - and I have $200 in my account. If the bank pays the Reader's Digest check, my car gets repossessed. If they pay the bank, Reader's Digest duns me; if they pay my brother - the MOST understanding of the three entities - I lose the car AND the magazine AND my credit score drops. Why is it the bank's decision?

In your first scenario, if multiple checks are received on the same day then they would be posted in check number order, lowest check number first. You would have written them in that order and the expectation is that you would right the most important check before your least important check.

As to your second scenario, the bank I worked for did care (and still does) about their customer. By paying the largest check first, they saw that as paying the "most important" checks before the smaller (theoretically, less important) checks. Banks do not actually "look" at checks anymore, they are processed by machines. So, they look at when they came in to be processed, the amount (read by machine), and the information already encoded on the bottom of the check (where the check number is found).

The point I was trying to make in my post is that there are several methods that banks can use for posting debits, and that each one has pros & cons that can be different for different people.

 

[nowellsl]

My credit union does the same thing, only they have "bounce free" protection. They pay the transaction for you and charge $43.00 for the favor! My daughter learned this the hard way!

 

[ajh88]

almost all banks pay debits largest to highest. i honestly don't think you will find one now that doesn't.. if it's your first time getting fees you should plead ignorance, that you made a mistake, and ask that they can please give you a courtesy refund... the employee should have some authority to do that for you as a courtesy... but if you went in there arguing about how the bank pays items with the employee that is only there to help, trust me you lost the battle before it started.

I'm going to 2nd this one - we had something similar happen about a year ago, where we had plenty in savings but I hadn't transferred it to checking (usually the bank would just automatically transfer it). Anyway, I guess there was a maximum amount or number of times they would do it, so I ended up being charged fees for 3 debits ($75 total fees).

I called and the first person said they would refund it. Days later, still no refund so I called again and was told about the maximum number of transfers per month (apparently federally regulated). I spoke with a supervisor and she said since it was the first time, they would refund my fees this time but that it wouldn't apply again. Now that I know there is a max number (it was in the original paperwork - that we got 10 years ago!), I'm more careful about it.

BTW, this is at a credit union.

 

[greens_in_WA]

Credit Unions and small "community banks" seem to be the best in our area... We process debit card and electronic transactions first (after cash withdrawals of course), then in check # order - according to the day the check comes in.

We've always been able to link to a savings account also so that funds will automatically transfer for free (or a small $1 fee) in the event we overdraw the checking. Many banks offer loans for this purpose as well, but I've always preferred to use my own money and avoid a fee... And yes, I probably don't realize just how fortunate I am to have always been able to have at least a little bit in a savings account.

 

[Donnask8pro]

I just switched from TD to Wachovia because of their banking practices. I totally agree.

I was told that a pending payment on the computer has actually already been processed so the computer statements of our accts aren't accurate.
I may be wrong but I would think that it the most accurate unless it is a Sunday. Even then if it is put in it should show up on the computer immediately?

 

[jgates]

We pay in check # order. Not sure anymore on electronic - I think it may be lowest to highest in amount instead of other way around - but that may be regulated by State law as they have all these consumer protection items out there in our state. (Some of which really are more of a pain than protection lol).

However, getting overdraft protection either thru a small personal line of credit or by having a balance in savings is a lifesaver for most people. Our personal lines have a $25 annual fee, plus about $10 if you need to draw on it. Definitely cheaper than $23 per check for an overdraft fee or the potential of additional fees from the merchant if the item is returned. I would rather pay $10 than $115 (we max at 5 items per day).

 

[ekmom]

I haven't had a bank account in 30 years, I use only a credit union. The fees are a lot lower and the people really treat you well!

 

[mrsklamc]

checkingfinder.com found us our credit union- and 4.5% interest on our checking It really adds up too...

It's down to 3.99 for new accounts now. Can't tell you about overdraft fees but the people have been very courteous.

 

[tuckerkeys]

I live at the Jersey shore too. I could have written this same post a few months ago! We had TD ( Commerce ) . Forever. Began noticing weird things regarding fees going up up up, and they debit before they credit ( a big thing with our business ) Lots of other things as well...OH! and HOLDING credit card money BEFORE it got put into OUR business acct so THEY could make some interest off it!! THIS was new and the final nail in the coffin....

We switched over to Shore Community Bank. Their business motto is that of what banks were like when I was growing up. They all know my name, everyone in my family, I feel like I have personal relationships with the workers. They CALL us if something is going to get OD-ed so we can move money from another acct to cover it! This has only happened 2x but they said it is their policy! They don't want to go down the roads the other big banks are going down.

We have told a lot of other business owners who were noticing the sneaky stuff TD was doing and most have switched. So many that we got a BIG gift basket from our local banks branch manager as a thank you for directing business their way! Would TD ever do this? No way!! Good luck wherever you go!