WWYD - B of A Overdraft Problem

[tipsytrtle]

i just had almost the same thing happen this week at Citizens bank, charges for 6.77, 13.48, 28.77, 50 and 93.99
i have overdraft linked to my savings acocunt that they will pull from savings if nothing in checking...
however i only had 135.00 in savings and about 30 in checking
i also made a 5500.00 deposit the next morning first thing, but they juggled and i got hit with
i got hit with 5 yes FIVE OD fees, i called the bank and they told me that the overdraft from savings is a "all or nothing" account, as in if there wasn't enough in there to cover ALL of these charges (two of which had not posted mind you they were on hold only) that they wont pay any of them???
WTH???
i was livid and we too will be going to the credit union as soon as i can find the time
they are just as bad as the credit card companies
i was going by the online account balance and was told "while that is a good tool, it states on the bottom of the screen that it's only a guide"??

 

[purplebelle]

I've made this very mistake with BofA as well. I've never had an overdraft before and have plenty of savings but didn't pay attention to my account online for 3 days and now have 6 - $35 fees.

I'm SO mad at myself for taking out too much money, but what the killer is is that the 3 charges over were under $5 each (snacks in our cafe at work) and then the other 3 are penalties for the overdraft fee putting me further into the negative. WTH! I'm going to talk to the bank tomorrow. I am so irritated with myself but also that banks charge so da** much.

 

[surfergirl602]

And this is why I bank with a credit union. B of A has long since practiced this method of posting debits and credits so that the highest number of penalties are triggered. They are also notorious for posting debits BEFORE posting credits to trigger fees even though you've made a deposit to cover any items.

More and more banks are doing this and I really think that it should be against the law. Or against policy, whatever.

 

[mickeyluvr004]

I also have BOA and I think they are terrible with the OD fees I messed up and I had a $1.00 fee bounce I didn't realize the account was that low either and it was the day before payday (it always happens then just before ) and my dh has direct deposit and they always seem to come in just before midnight when his check is deposited. Now I always leave bumper money in there to get around all that.

 

[mickeyluvr004]

Oh and they didn't refund my 35.00 either I went to the bank and she said she couldn't and called and they also said no and we have had accounts with them since they were Fleet and even before they took over I guess it's time to find a better bank with less fees if it should ever happen again. I think that 35 is way too much for under a certain amount. Well I guess I will just keep a double eye on things from now on

 

[*pixie*dust*]

It has been a common practice lately for finacial institutions to determine the fees based on when a card transaction was authorized, not when it actually hits your account. So if the transaction that overdrew you was authorized first it would have counted all others as overdrafts. (Not saying it is a good practice--but it is how most institutions handle card transactions)

 

[minnie1928]

Another thing to keep in mind is that if you consider yourself to be a good customer by keeping a few hundred in the account and never overdrafting, the bank does not see you as that same good customer. Banks want one of two things, a big balance (bigger than a few hundred, more like a few thousand) or lots of fees. If you can provide them with one of these (both would be ideal) THEN you'll be a good customer in their eyes.

I agree, the banks should be required to post credits first. If you aren't happy with the bank, then move the accounts. Move them to a true local/community bank or a credit union and you should be able to get better customer service.

 

[BelleWDW]

Also... it pays to keep 'buffer' funds in your account. Think of it as 'built-in' overdraft protection. I know times are hard, but you don't want your own bank gouging you unnecessarily.

We do this on both our bank accounts-have a sum that is in there, but not written in our bank book

 

[Tweevil]

And this is why I bank with a credit union. B of A has long since practiced this method of posting debits and credits so that the highest number of penalties are triggered. They are also notorious for posting debits BEFORE posting credits to trigger fees even though you've made a deposit to cover any items.

If you don't have a history of this kind of thing happening, you should speak directly to the bank manager who has the authority to help you.

B of A is imfamous for doing this - they juggle fees and no matter what the circumstances or your history they will stick it to you. I laugh when I see their commercials proclaiming customer service and they care.

They lost all of my accounts and the one at my job because of their poor customer service. I wouldn't recommend them to anyone.

 

[mom2twinz3]

And this is why I bank with a credit union. B of A has long since practiced this method of posting debits and credits so that the highest number of penalties are triggered. They are also notorious for posting debits BEFORE posting credits to trigger fees even though you've made a deposit to cover any items.

I so agree. M&T Bank is the same way. I think most of the big banks are anymore. We have been with dh's credit union for some time now and have been very pleased. Never an overdraft, ever.

 

[mjejj]

The same thing happened to me at BofA. They charged me something like 6 fees for one bounced charge of less than a $1.00. I called customer service and they couldn't figure out the problem and said it was how it was supposed to be. I knew I had been charged an overdraft fee on my overdraft fees. I went to my local brach and after about 30 minutes of the manager trying to figure out the problem, they refunded all of my overdraft fees except the original on that was my fault. They do make mistakes but you have to go into the branch and compell them to see the mistake. I'm like you, I will pay for my mistakes but don't ding me for something I didn't do. I'm usually quite calm but just typing about it gets me fired up. I think Clark Howard did a story on this recently, it's called stacking fees. I guess it is "legal" but I don't think it is really customer friendly. Ok, vent over.

 

[P.I. Squirrel]

I was a participant in a class action lawsuit in the mid 90s against BOA. for just this issue. It was settled out of court. The settlement terms were that you could be reimbursed up to (2) fees that you believe you were erroneously charged, but only if you filled out mounds of paperwork. Whoopie! I didn't even bother (I know, it's exactly what they wanted.)

It is not just BOA, but others as well. They place a clause in the 10 page novel of terms when you open your account that states the bank can determine in what order to deposit funds. Of course, they have chosen to hold all transactions for that day until overnight, then deposit them highest to lowest, not chronologically.

Still, the bank can, and does, sometimes refund charges. Be polite and explain your good history with the bank. Hopefully, you will get at least partial resolution. Until then, thanks for reminding everyone else that this happens.

 

[minnie1928]

Of course, they have chosen to hold all transactions for that day until overnight, then deposit them highest to lowest, not chronologically.

I worked at a local, community bank for many years and we often discussed overdraft fees and the order in which to present charges. This is a hot topic and there are opinions on both sides that make sense. For example, we could pay the smaller items first and theoretically charge fewer items as overdrafts. Or we could pay the larger ones first, because theoretically the larger bills would be more important (think mortgage payment vs. Target trip). Or, we could pay everything in the order that it was issued and presented (checks paid in check # order for that day).

The discussion went around and around. I think (I can't say for sure) that the decision was finally made to pay in order of issuance because that was the way that the customer originated the transaction.

I am in no way saying that the bank's aren't being greedy. But, there is rationale used that goes beyond the bank trying to make more money (at least there is for the smaller banks).

Also, it's common for banks to post all their work at night because that's when the actual processing for the day is completed. It's not a scheme, it's simple logistics for them to get all the work from all the branches to a central processing facility.