Allegations have been made about excessive bank overdraft fees. Specifically, customers of some banks allege that they have been the victims of excessive overdraft fees and that banks have used misrepresentation of account balances and reordering of credits and debits to push customers into overdraft, allowing the banks to collect bank overdraft fees. Now, some customers have filed bank overdraft fees lawsuits to fight back against the banks.
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New Bank Overdraft Fees Regulations
As of July 1, 2010, banks will have to ask new customers if they wish to opt in to overdraft protection. That legislation extends to existing customers on August 15, 2010. There is no legislation regarding how much money can be charged for overdraft fees, meaning customers who opt into the program could still pay up to $35 for transactions that take them even $1 into overdraft.
Bank accounts go into overdraft when more money has been taken out of the account than was actually in it. It can happen quite easily—a bank account has $100 in it, but the customer makes a debit card purchase for $110, pushing the account $10 into overdraft.
The problem is that some customers say they never asked their banks to provide overdraft protection—they assumed that if they tried to make a purchase they could not afford the purchase would be declined. Instead, customers say more and more frequently, such purchases are being approved and the customers are left with hefty overdraft fees.
Those fees can be as much as $35. That means that $10 into overdraft—overdraft the customer might not have asked for—is costing that customer an extra $35. What's more, customers say they are charged overdraft fees for every overdraft transaction. So, they may be in overdraft without knowing it, continuing to spend on their accounts and being charged $35 every time they do so—pushing them even further into overdraft. That can add up to hundreds of dollars in fees.
Excessive Bank Overdraft Fees
Excessive bank overdraft fees lawsuits have been filed and/or settled against a variety of banks, including Wells Fargo, Bank of America, M&T Bank and Wachovia. The lawsuits allege that banks charge excessive overdraft fees when customers' accounts go into overdraft. They further allege that the banks use a number of unethical practices to push their accounts into overdraft, such as misrepresenting customers' account balances and reordering debits and credits to accounts.
One tactic that banks are accused of using to increase their profits from overdraft fees is reordering transactions on accounts. That means that regardless of what order transactions occurred in on a single day, some banks process the largest transactions first. That can lead to a lot in extra fees for a person to pay.
For example, say a man spends $10, $20, $50 and $100 (in that order) in four transactions on one day, having $140 in his account. Either way, the account will likely still go into overdraft. But, if the account is debited in the order the purchases occurred, then only the final transaction will result in an overdraft fee of $35. However, if the transactions are processed from largest to smallest, then only the $100 purchase will be covered, leaving the customer to pay $35 for each of the final three transactions—for a total of $105 in charges.
Those charges can add up. According to a USA Today (Oct. 2, 2009) article, banks made $36.7 billion off overdraft fees in 2008. The article notes that some banks have allowed debit transactions as low as $1 and charged a $35 transaction fee and have charged an overdraft fee when the purchase is made rather than when it clears the account.
Not all banks charge a flat $35 overdraft fee—fees run from $19 up to $35. Some banks have tiered overdraft fees, so that the first overdraft transaction in a certain period costs one amount but any more overdraft transactions cost more.
Another practice that banks are alleged to have used to push customers into overdraft is authorization holds. Authorization holds occur between the time a bank card purchase is made and the time the merchant settles the transaction. Prior to the merchant settling the transaction, the amount of the purchase is held, but it has not actually been withdrawn from the buyer's account yet. Once the merchant settles the account, which can occur a few days after the purchase is made, the funds are transferred to the merchant and the customer no longer has the money in his account.
For example, a customer with a $100 in his account makes a purchase of $40. That $40 is held immediately for the merchant, but is not actually taken out of the account because the money has not yet been transferred to the merchant. The customer cannot access this money, but it is still, technically, in his account. When the merchant submits her batch of transactions, the money is then taken from the account and transferred to the merchant.
This is all completely legitimate. However, some customers have complained that their banks back-date transactions to the date they occurred, not the date they were settled. They say this pushes their account into overdraft because they may not have had the funds necessary on the date the transaction occurred but did have the funds necessary by the day the transaction was settled.
Another complaint is that banks have been irregularly posting debits and deposits on customers' accounts. For example, banks are required by law to make a check deposit available to a customer within a certain number of days. However, they can choose to make the deposits available sooner. Customers have complained that check posting is occurring inconsistently—meaning that customers cannot predict when a deposit will be posted to their account. Sometimes, they say, the check is posted immediately while other times the check is not posted until after the account holder goes into overdraft.
Overdraft Fees Lawsuits
Lawsuits have been filed against banks for their overdraft fee policies. Already, some overdraft fee lawsuits have been settled. In Closson v. Bank of America, Bank of America agreed to pay $35 million to settle allegations of fraudulent business practices and false advertising. According to the plaintiffs, Bank of America reordered transactions, did not warn customers that their account was about to be overdrawn, and gave inaccurate account balance information.
Meanwhile, more customers are filing lawsuits against their banks, alleging their overdraft policies are illegal. Banks that could potentially face lawsuits regarding their overdraft procedures include:
Bank of Hawaii
Bank of the West
Bank of Oklahoma
Capital One Financial Corp.
Valley National Bank (NJ)
New York Community Bank (NY)
Community Bank, N.A. (NY)
NBT Bank, N.A. (NY)
First Niagara Bank, N.A. (NY)
Umpqua (OR and CA)
Citizens Bank (MI and OH)
Bank Midwest (MO)
Santa Barbara Bank and Trust (CA)
City National (CA)
Sandy Spring (MD)
Bank of the Ozarks (AR)
Tri Counties Bank (CA)
NBT Bank (NY and PA)
In 2010, a judge ordered Wells Fargo bank to pay $200 million to customers in California who alleged that the bank's overdraft practice was unfair and deceptive. According to The Oregonian (08/11/10), the judge wrote that customers do not expect to pay "up to ten overdraft fees when only one would ordinarily be incurred."
Also in 2010, Umpqua Bank announced it was changing how it processes and posts debit transactions. According to a September 16 letter from Umpqua Executive Vice President for Community Banking Ric Carey, transactions to checking accounts will now be ordered from lowest to highest, rather than highest to lowest.
Overdraft Fees Settlements
Various banks have now settled lawsuits alleging they charged excessive overdraft fees or reordered transactions to push consumers into overdraft more quickly. In May, Capital One reportedly agreed to pay $31.8 million to settle allegations of deceptive overdraft practices. In March, American Savings Bank reportedly agreed to settle a class action lawsuit filed against it for $2 million. Also in March, HSBC Bank USA also agreed to settle overdraft lawsuits. HSBC Bank USA's settlement will see the financial firm pay $30 million to settle claims.
In 2011, Bank of America agreed to pay $410 million to settle claims of more than 13 million customers that the company used unethical overdraft practices.
Excessive Bank Overdraft Fee Legal Help
If you or a loved one has suffered damages by one of the banking institutions listed, please click the link below and your complaint will be sent to a lawyer who may evaluate your claim at no cost or obligation.
New York, NY: Even if you think banks make huge profits off the various fees they charge their customers - including overdraft fees - you might still be surprised to learn just how much money the banks make. According to CNNMoney and SNL Financial, the three largest banks earned more than $6 billion in 2015 just from their ATM and overdraft fees. That’s despite new laws that regulate how and when banks can charge overdraft fees [READ MORE]
St. Paul, MN: An excessive bank overdraft fees lawsuit and resulting settlement has been embroiled in an extended legal conflict not between the defendant bank and its customers, but rather an ongoing dispute between US Bancorp (US Bank NA, US Bank) and two of its insurers. The issue is how much of the $55 million settlement agreed to by US Bank would be paid by its insurers, if any [READ MORE]
New York, NY: An excessive overdraft fees lawsuit filed against HSBC Bank USA has reportedly resulted in a preliminary settlement worth about $30 million. The $30 million settlement has been given preliminary approval by the judge, although the settlement is not without controversy. Other lawsuits have been filed against HSBC alleging the bank reordered transactions to increase profits from overdraft transactions [READ MORE]
An employer who gave me a check, had me cash it and transfer some funds to a friend. As it turned out,the check was fake and it got returned. it was a scam but, from what I understand, it took less than a day for the check to clear as I was surprised that they let me transfer the funds immediately(it usually takes at least 4 days to clear the check) Now, my account went into overdraft and they are telling me they can't do nothing. They were telling me they made the money 'available' since I have been a customer for over a year. Are they supposed to let that happen? What is your advice? How much would it cost me to file a lawsuit and get a lawyer?
Posted by Emahni w Herring
Remove me Philadelphia pa
Posted by MN
US Bank charged me $426 in overdraft fees in the last 7 days. I've transfered into that same account $530 and spent only $361.12 in that time period.
Something must be done about this.
Posted by gerald cunningham
PNC in Bank Sarasota , Florida ripped me off of $133 fees.
I deposited $12,853 from an attorney title company on December first.2015
PNC Bank paid four checks..of $2,397 total that day Decemeber 1, 2015..
Then On Dec 2,2015 Charge me over draft fee of $133..the following day saying my account did not have any funds in it...Yet they paid $2,397 in checks...Why ?..would they do that
My account had money in it..
I am going sue them in court.
Posted by Kris ramos
Im with Regions Bank p8for 10 yrs.and have been just robbed for 72.00 dollars for .65 cents ... Ask me how or why... Well cause i have quote on quote i am not able to have deleverence of payment to another institution unless full payment amount is i. The account ..well thats nottruemy mortgage payment was due i put the full amount except for .65 cents... The bank allowed the mortgage company totake full payment retracted the payment n then.charged me 36.00 dollars. N told me its not an overdrft fee its an retraction fee ...then the mortgage company tried again ...and again i was taken for another rtraction fee. ... So i told the bank what they were doing and they told me thats the fee n ibcant get back my 72.00 dollars cause thats there fee aft re telling the bank hey this is my home payment ur me$ing with.... 72.00 for .65 cents ridiculous any one know of who i can get on board with this isnt the only time this has happened ....
Posted by Ryan Lee Warriner
Take them to court. In mass. Every single person can take their bank into small claims court for $25 and have them answer. They can NOT bring an attorney, and neither can you. Bring them in to court. You need to do this or simply accept what banks are doing to you. These comments do not get read by the banks.
I will be filing a small claims against KeyBank here in WA on January 4, 2016. I will show manipulation in order to increase profits.
Take your bank into court. If one person does this, nothing happens, but imagine now, across the country 10,000 and more do this, and it is a movement.
The courts are there for the American people to be heard. Do it there. Don't talk. Do. I applaud your fortitude in advance.
Posted by K.T.B
This is such a disgrace that in this day and time banks(J.P MORGAN CHASE) can get away with this type of deceptive practice of rearranging and leaving things in the pending status so long that they can reverse the order in which they say they were received and/paid to charge you as many overdraft fees as possible. It is one thing to actually owe the bank for one overdraft which I'm sure the average person wouldn't have a problem paying, but for them to turn it into 5 overdraft fees is not in any way fair to the people that are the reason why you are in business. This should be considered some type of fraud the is punishable by law to the CEO of these institutions. There should be something that the government can to do to prevent this practice from occurring. When the banks needed a bail out it was on the backs of everyday Americans who came to there rescue and this is HOW THEY REPAY US BY CONTINUING TO FIND WAYS TO RIP US OFF. SHAME ON ALL THE BANKS, THE LOBBYIST AND POLITICIANS WHO ALLOW THIS TO CONTINUE.
Posted by carl m. anderson
a there is a catch to opt out overdraft fees . I am a fix income senior and currently can not use cell phone ( waiting for the money for pre pay for cell service) there are no pay phones to call a bank . so when I wait for social security check to be deposited in the bank , two days later after the check is supposed to be there , I try buying something . card declined . I can not call but was told there is ATM refund . okay I use a ATM to find out no social security money . WHERE IS IT . here I get a ATM fee overdraft fee and service fee , I am in the negative fee . This is the $20 for ATM $20.50 bank communication access fee . where is the money probe fee of $25 and $34 in the negative fee . I was also slammed this for trying a withdraw of $20 a different time . the ATM clearly told me card declined in sufficient funds . the opt out was not used . what is supposed to be only $2 ATM fee , was a $156 nightmare for finding out money not there or was it intentional fraud .
Posted by Charlotte Jones
Chase Bank is at it again manipulating checking accounts to subject clients to overdraft fees. They are processing debts before deposits to charge clients excessive banks fees. Somebody please help.
Posted by Lori
Wells Fargo is putting credits through before debits - causing over draft fees along with charging a fee for automatically transferring money from one account to another that are linked for over draft protection. I am not really seeing any concrete answers if this is legal or not how do I find out if it they can or not. If not how do I go about fighting this?
Posted by loietta
I deposited $500.00 dollars at a Tri Counties Bank on Sat. Using one of their ATM's. As of today Monday the 9th. they say I'm overdrawn because I used the ATM and the funds won't be there until Tues. Morning...Mad ? You bet! I'm closing this acc. and going back to Wells Fargo.
Posted by New York
I have been faithfully banking with Chase for over 3 years now. My first year of banking with them I was hit with numerous over draft fees at once not including what I spent. The mobile app that they had told me that I had a total of $430 in my account. While doing some Christmas shopping I decided to check my account just to be sure I didn't go over my remaining balance. I saw that I had $200+ in my account so I continued to shop. The next day I checked my account and I was $-300+ in my account. Why you may ask? Apparently there was a "glitch" in the system that showed me the wrong balance and for every transaction I was hit with a $34 over draft fee. At the time I had just graduated from high school and was working at a fast food restaurant. Being that I didn't have the $300+ to put into my account I had to wait until I got my NEXT paycheck. They took "their" money out of my pay checks for TWO BACK TO BACK WEEKS to pay back what I "owed" them
Posted by Maui, Hawaii
Beware of First Hawaiian Bank - they have made thousands of dollars on overdraft fees. Over the past few years I have seen through my online banking them manipulating the credits and debit causing overdraft fees upon overdraft fees stealing almost hundreds of dollars a day!!
Posted by Gretta
First, open a new account, then close your current one.
Then, stop paying by way of checks, & stop automatic bill paying by the bank. Then, each month after your funds come in, draw money out of your new account to pay your monthly bills. By money orders for them at grocery stores, where they are much cheaper than at banks.
Cancel all automatic payments. Mail money orders to everyone you owe, instead of checks or automatic payments. You should have no more problems with overdrafts if you do this. If every-one paid by money order like this, that would put a screeching halt to this little scheme of theirs.
I realize the money-order process involves more work for you--bookkeeping, etc., but it will save you bundles of $$$.
I am looking at ways under the law to ding these guys big time, without having to go to court. You can't win in court, because it is rigged. The "judges" etc. all work in collusion with the bankers. You have to learn to do administrative processes, using affidavits. You can shut the bastards down by learning how to do administrative processes because this puts you into common law where you have rights--and how!
We don't have to take anymore crap from the system when we learn how to wield the sword. I will post more after I consult with some law gurus I know. There is a way to cut these criminals into little pieces. I believe there are ways to foreclose on these banks who do this, too.
Posted by ash
i have been with my bank Chase for several years, and have been very happy with their service until recently. I had a $4.88 overdraft. Now the way my bank works, as long as you don't go over $5, you do not get hit with the $34 overdraft fee, however; if you have a negative balance, for more than five business days, you get hit with a $15 fee. A feature that they have is mobile banking. A friend gave me a $20 check to deposit into my account to prevent this $15 fee. Low and behold, when I tried to deposit the check, I got a message saying my account was ineligible for a mobile deposit. I was told that because I had a negative balance, I could not deposit the funds to cover that negative balance.
After that was settled and my account was back on the positive side, I did another transaction where I was a negative $0.17. I was going to have over $1000 deposited in my account in two days. The day before the transaction was to come through, I made two more purchases which would have cleared my account this morning, after the $1000 deposit. So to summarize, Sat, I had a -$0.17...then Monday I had a total of -13.33 all transactions were still pending at 2am, so these transactions had not yet cleared my account. This morning, I log into my account, and show I have two overdraft fees of $34...The bank took them off as a courtesy, but I don't think they should have been there in the first place...they told me that the transactions cleared at 11pm est..they did not, I did not go to bed till after 2am, and they had not yet cleared my account...
Posted by DColbert
The very fact that banks are allowed by our governmental officials to succeed at such underhanded and disruptive [to society overall] is atrocious, destructive and vile.
Americans everywhere should stop and demand that government officials get off their overpaid elected butts and legislate a ban or regulatory caps on all financial banking institutions!
AMERICA STOP TAKING THE banking CRAP!
SPEAK UP! DEMAND! INSIST!
Posted by Kristopher
BEWARE of, Bank of America, They manipulate your account like crazy.
I have not been overdraft in over a year despite the efforts of Bank of America. Here are the weird things I have seen them do to manipulate my account and try to overdraft me in the last 6 months alone.
I should also say that this effort seems to be highly focused on accounts with Direct Deposit which routinely spend down the balance to less than $20 prior to the next Direct Deposited paycheck.
#1: Repeatedly altering the transaction dates for purchases. In one case I still had the store receipt from the far side of town which showed the date of the transaction, yet my account was showing it as processed the prior day which put me less than 1 dollar away from an overdraft.
#2: Transactions which were showing as "processing" would suddenly disappear and the funds would show as available and not be on hold anymore. Then when I spent money the "MISSING" transaction would pop back onto my account and the funds would be held again. (they almost got me a couple times with this one!) (It only happens the day prior to my direct deposit and when my balance is below $20)
#3: Misrepresenting the Available Balance, (I have seen this one twice) I will be monitoring my account closely and know the balance is lets say, $9 the balance will be the same for several days with no transactions having happened because I know I only have $9, then one day prior to my direct deposit, my account will be altered to reflect an available balance that is around $15 higher. The transactions on the history will not explain the balance at all. I'm 100% sure that if I were to spend into that ghost balance that it would revert to normal and put me into over draft.
Its completely shady and should be investigated. But why would Bank of America ever stop? They rack up $35,000,000 to $100,000,000 every year on shady overdraft fees. Their CEO has stated publicly that "Our customers understand that we have the right to make a profit" Why would they want to stop? They only have to pay back 10% every few years when they get sued by the victims.
This is all truthful info that I have witnessed repeatedly on my account. There is ABSOLUTELY no reason for my available balance to inflate by $15 right before my direct deposit. when there has been no activity on my account for a week, to see the balance increase, and then go back to normal when I get my deposit. Thats like putting food in front of a starving dog. Are they hoping that someone is out of groceries and assumes they have enough money for a gallon of milk and some food? Is it trying to tag overdraft fees on the poorest people who are least likely to raise a fuss or even realize they were just extorted for a $35 fee that was 100% generated by manipulating their account? I'm not an expert and these are just serious question to be investigated further. but everything I state as having witnessed on my account is 100% true. I'm going to starting taking screen shots and photos on my phone when this manipulation happens. Or perhaps just go to a credit union that isn't trying to rob me.
Posted by Violet Jefcoat
My husband and I are seeking legal counsel in the matter of illegal practices at Trust-mark National Bank. In the past 2 months our account has been hit with a whooping $2000 in NSF fee's and we opted out of the overdraft courtesy. They will not refund the fee's nor will they explain how our account is being charged these outlandish amount of unexplained bank fee's.
Posted by Nevada
We spent thirty four years doing business with Bank of the West. We are loyal, honest people. It used to be a great bank. But the past several years there have been consistent problems with FiServ who Bank of the West contracts with for their Bill Pay and credit lending.
Instead of sending checks to our creditors, on several occasions they sent checks to us, with the creditors name upon them. When we called with complaints, they told us to forward their checks on despite the fact they are paid by the Bank of the West to perform the Billpay service. They were terribly rude and we had to pay late fees due to the delays in the mail. Bill Pay never resolved this issue with the fees. It cost us hundreds of dollars in late fees.
Due to the continuing problems with Bill Pay and the costs we had to pay, we finally closed our account with Bank of the West. The account was closed on April 29, 2015. All Bill Pay items for May were cancelled so there would be no issue with them. We paid our creditors ourselves for the May payments, through our new bank.
On June lst, despite having closed the account more than one month earlier and having a zero balance, Bill Pay reconstructed all our accounts and paid them. Realizing their error the next day, on the 2nd, they pulled back the funding resulting in hundreds of dollars in “returned check fees” from the creditor to us.
Only one account, Home Depot, cashed their FiServ payment of $150. All the rest they notified us about returned the funds to them. However, there were accounts which they did not notify us about which also charged us returned check fees. They suspended our account, despite the fact we had no account with them. We had an account with Bank of the West who contracts with them. And that account was closed five weeks prior to them paying creditors.
Apparently, to pay our creditors they must have had our information on a separate database, or they were allowed access to our personal accounts by Bank of the West. They paid last year's charges, not this year's.
On the 6th of June, after they claimed the the account was suspended on June 2nd, four days earlier (of which our account had been closed five weeks earlier) they again paid a creditor, our home mortgage company despite the account being "suspended" four days earlier and the account being closed with a zero balance at the end of April. This was for thousands of dollars. We were extremely concerned a fraud was occurring, especially since FiServ is paid per transaction with some creditors.
We have been assessed check return fees from many of the people Bank of the West's contractor paid. Why they paid by check, we do not know. All had online payment capabilities.
FiServ is now engaged in a harassment campaign of, calling daily and threatening us by telephone. There are several calls a day coming into one of our homes and they are now leaving threatening voice mails upon our cellular phones.
We insist on resolving this with Bank of the West, with whom we have a contract, not FiServ. Their contractors should not be harassing us. Today, they agreed to look into the matter. It is complicated as their contractor has racked up more than $4000 in fees and expenses as a result of what occurred.
We are also awaiting an apology, which has not come, as of yet. The first few steps we went through with Bank of the West was them stating we owed a debt. Now, they owe one to us which is almost double, as a result of FiServ.
Posted by Arkansas
I have been with Iberia Bank for 7 years. Im not understanding how I can be charged an overdraft fee when I OPTd out in the beginning. I have an account with Paypal threw Iberiabank. I currently have pending disputes with Paypal that has to be refunded back to my Iberia account but the manager who Iv been dealing with has been the most unprofessional lady Iv ever dealt with. I was charged 50 $35 overdraft charges when I only had 31 transactions, but the transactions werent even paid for so Paypal automaticly kept trying to take out money from my Iberia account. So I ended up getting all of these overdraft fees over and over and Paypal never got paid. The lady has had something against me for some reason. The manager closed my account with no warning and 5 open disputes still pending and owing me $1191. She accually put in money just to be able to close my account. She said the disputes were closed when they are still open even now. If they were closed money would have went back into my paypal and then back into my bank. She has said very rude things to me. Called both my fiance and I liars cause we said the ATM didnt work and said out of order. She rudely says theres nothing wrong with the ATM or I would No about it. The next time it happened we took a picture of the machine and address and shown her and she rolled her eyes never apologizing and started picking on my account ever since. In 7 this bank has stolen over $12000 in overdraft fees that I never agreed to EVER
Posted by Anonymous
Banks is West Virginia are trying to roll back a Consumer Protection Law in the state. This would allow them not be held liable for illegally charging you fees. Call your state representatives. Check your checking accounts, does your bank post your deposits as the last transaction of the day. They do this to overdraw your account. Statement at end of the month will not show, your deposit posted as last transaction of the day. Watch and print statements out from internet banking. Another way they charge fees, is through your escrow accounts. They raise the amount due on your insurance policies, then charge you a fee. They put your payments in unapplied funds, even if you are not late on payments and charge you a fee. If you suffer a loss as a tornado, flood, or damage to your home, many banks and insurance companies are conspiring against homeowners. Many banks have policies, if you have fees, late on payments they will deduct from your loss proceeds to repair your home. Homeowners pay the insurance companies for said policy. This is a breach of contract, when they allow banks to control loss checks. Banks and Insurance companies are working together: loss checks come in policy holders name as well as banks, they try to force you to use contractors even if you are educated in repairing your home, make you get building permits even if you live outside city limits. If this is occurring, Please contact me. I am now in the process of holding a local bank accountable for their illegal activity.
Posted by Anonymous
Date: 03/03/2015 11:10AM
Subject: Branch Manager, Post Falls Idaho US BANK
To Whom it may concern,
Just received a phone call from the "District manager" of US bank in Post Falls. "NOTHING she can do" she said. Been banking with US bank for MANY years....And get this treatment. I don't care about the "Fees" anymore. My goal now is to get this bank a "POOR" customer service rating in EVERY on-line forum, BLOG and media outlet.
> From: firstname.lastname@example.org
> Date: March 2, 2015 at 4:16:33 PM PST
> To: "email@example.com"
> Subject: Branch Manager, Post Falls Idaho US BANK
>>> Date: February 28, 2015 at 12:18:03 PM PST
>>> February 28,2015
>>> To : Richard K. Davis, CEO.
>>> This is to address an issue of personal service at US bank in Post Falls Idaho. This may be an insignificant issue, but I would like to tell you what happened in my case.
>>> On February 25, 2015 I had made a call to the post Falls branch to let them know that a check was supposed to be direct deposited in my account on February 8th. This check was not deposited as expected due to an error from my Corporate office.(Universal Hospital Services) located in Minnesota. I explained to the "Assistant Manager" my real concern in possible overdraft charges. (I'm a person who does sometime sends out checks in the expectation of a deposit) She, the assistant manager, told me that she couldn't help me unless my account was in a "Positive balance". She made a "Note" in my account (So she said) of my situation.
>>> On February 27, 2015, I had called back after my account was in a "Positive balance" according to the assistant managers direction. (A payroll check was deposited) to cover my accrued overdraft charges due to my previous check not being direct deposited into my account from the 8th of February. I spoke with Julie, who looked at my account information and proceeded to "sigh" and make other noises perceived to be that of disgust. I again explained my situation and how the "assistant manager" told me she could help me on the overdraft charges if my account was in a positive balance. "Julie" began to lecture me on my banking practices and that my account is "Not Worthy" of this kind of assistance or personal attention from her.
>>> Sometimes I think of the "Race Card" and my nationality in cases like this, but I didn't even think "Julie" cared. If I had walked into the branch with my suit and tie on, maybe things would have been different. I do pay my bills, I own my house and my cars. (my credit is on the mend from being unemployed) this should not matter. I'm a good person and family man. Perhaps "Julie" needs to learn humility. "Regular People" that have been in this town for 42 years want to be treated as just that. My account will be closed and moved to a local "Hometown" bank in the next few days.
>>> Thank you for your time,
>>> Edward M. Vaillancourt
>>> 1396 N. Brookhaven Ln.
>>> Post Falls, Idaho 83854
Posted by New York
Over and over and over again, they have charged me overdraft fees for transactions that I actually made while the bank account was above zero. Their math consistently stretches the amount of time it takes various processes to run, in order to maximize the number of $35 fees they can possibly justify. I have asked them over and over again to simply tell merchants when the account is zero - it's a debit card!! However, TD Bank will approve transactions, then bill me the overdraft fees days later "when the transactions are run." They stole almost $5,000 from me in 2014. Many of these cases were runs of half a dozen transactions where my account would never have been below zero in the first place, if they hadn't started their run. I am so fed up with being abused by TD Bank and having my hard-earned money stolen by my own bank.
Posted by North Carolina
This bank hooks purchases and changes the posting order. In addition they will charge overdrafts for purchases that have not cleared, which causes overstay of cleared funds.
Posted by California
Bank of America placed overdraft protection on my account without authorization. Since then the bank has charged me about 30 overdraft fees. I asked them to take the protection off and they have told me they can take it off, but either way, I will be charged a fee. If they decline a transaction, they charge a $35 fee as well. This bank has literally charged me at east $1,000 in fees the past year. It’s sad that a billion-dollar company takes from people that can barely make it.
Posted by Wisconsin
Excessive fees and reordering of transfers, deposits and debits in my account have caused my accounts to go into deficit; and they have charged me hundreds and even thousands through the years I have had accounts!
Posted by Anonymous
I checked my account one day before payday and noticed I had a pending transaction which would have thrown my checking account into a -$2.00. I immediately went to bank to deposit 5 bucks to "cover" the shortage. This morning, I check my balance and see the NSF charge. I don't understand how they get to charge the fee when the transaction has not been "settled" with the merchant. This is BBVA Compass, I have called about this previously and was given the ol' " we will return the fee as a courtesy" line. I don't consider it a courtesy, but a glitch in their system or another way to take your money. Don;t get me wrong, if it was a transaction that was posted , I would not be arguing the fee
Posted by Alabama
Compass has a new way of generating NSF fees. When using their online bill pay, they will randomly select transactions to pay using a draft check rather than it being paid electronic. The draft check amount is not deducted from the account until it's cashed. They've done this to me several times now. They cannot explain why the same payee will be electronic one month and draft check the next. It's completely random.
Posted by Anonymous
Account holders BEWARE! Neither the transaction activity page nor the statement balance page reflect the true balance of what's in the account. They are re-ordering the transactions (because the customer has no way of knowing in the order they came in - only the mighty bank knows), so this works to their advantage in jacking up the overdraft fees. SO we have to trust THEM when they say what transaction came in first!? hmm....
They should be investigated again!
Posted by Anonymous
After years of paying overdraft fees I have spent hundreds perhaps thousands in over draft fees. The debit card is convenient to use and people in the check out lane look at you like you are crazy if you right a check instead of using the card.
When using the card instead of cash, there are a lot of smaller charges such as coffee or lunch. If for whatever the reason your account hits negative, any small purchase, even $1 will cause the same check charge that a $500 purchase would.
I can understand the bank takes some risk and they deserve some recompense but 2500% interest is more than usury. They will gladly continue to add up the charges with out any limit. I suspect the banking industry makes more money from overdraft fees on small accounts than they do on the interest from larger accounts.
I think there should be some regulation on overdraft fees and part of that regulation should include the fees being based on the amount of the overdraft. I think 10% up to $35 would be reasonable. So then if your account had five overdraft fees of $1 the total overdraft fee would be $.50 instead of the $175 currently charged.
If anyone knows of a law suit to reform the overdraft fee regulation in such a way I would gladly sign up.
Posted by Virginia
We went into overdraft, and we had thought we didn't have this 'protection', the fee caused us to overdraw on bills that were scheduled to be paid, they weren't of course because we were now overdrawn because of the fee. Then we kept getting more overdrafts, and more. We stopped using the bank, and were still getting fees because of the bills we had scheduled to be paid from other vendors sites were already in motion. Soon we were getting extended overdraft fees. Ultimately, they charged us over $800 in fees. I have tried and tried to get some refunded, and they don't return my calls.
Posted by New Jersey
TD Bank has recently charged me $105 for being overdrawn by $14. Looking at my recent statement, they processed the highest amount first while three other purchases were processed causing the above fee. I called their 1-800 number and the representative was authorized to credit $35. I explained to them that my daughter had made an unauthorized purchase but that didn't matter. Research shows that the banks make billions of dollars in overdraft fees. To me this is a true fleecing of the middle class worker.
Posted by Illinois
We just received our 2012 and 2013 bank statements to overview how much in overdrafts fees we were charged before we changed banks. Just in the year of 2012 we were charged $2,800 in overdraft fees out of our business checking account! Our business almost went under because of this. We have been with Chase Bank for a year and have had one overdraft fee. We believe we are entitled to compensation for this. I don't know how that is legal for them to do.
Posted by Arizona
When I signed up for my checking account, I opted “no” for overdraft. Then all of the sudden they say I opted in online, and that is false. I now have $500.00 in overdraft fees. Bank is located in SC.
Posted by Florida
Reordering transactions starting with the highest check to put our account in overdraft, then making multiple overdraft charges on smaller amounts. We have paid thousands of dollars over the last year from our business account.
Posted by California
They consistently process my transactions out of order causing me unwarranted overdraft fees. This usually happens over the weekend and they post my debits the following Tuesday completely out of order.
Posted by Anonymous
Golden One Credit Union presents itself to be a small bank/ credit union but is actually excessive and inflexible with their overdraft policies. Im on disability and have been charged over $300 in the two month in fees. My overdrafts are due to some unauthorized payments that grew into a larger sum of money. Golden One reps aren't helpful at all. Golden One is more aggressive with fees than the larger banks. To any one considering going with Golden One Should consider sticking with the large banks. There's no benefit in dealing with small banks like Golden One.
Posted by Pennsylvania
I have had multiple concerns with this bank recently. Starting with a dispute where they gave me provisional credit then reversed it without notice more than once, which resulted in overdraft fees. Then I was able to get them to refund the fees only to reverse the credit a 3rd time resulting in more overdraft fees. They have re-ordered my debits largest to smallest to maximize their fees and even have charged fees on a positive balance. This is not the first time they have done the re-order or charged on a positive balance.
Posted by Ohio
Excessive overdraft fees and reordering has been going on for a while now. I have paid more than $300 in fees, and I am tired of it. I have been a Lorain National customer for over 30 years
Posted by Anonymous
BB&T has a series of rules that allows it during nightly processing to make it more likely that a phantom overdraft will be created that they can use to collect overdraft fees. In my case the byzantine process included limiting a deposit for over $3,000 to be valued at $100 for the purposes of the processing cycle (the full amount was available after processing was complete), taking into account a scheduled electronic payment that was not due for another two days, ignoring a line of credit that was there for overdraft protection and process charges in an order that no customer can ever know or predict. The bottom line is you can start off the processing cycle with cash in the bank. pay multiple overdraft charges because of literally a phantom overdraft that never really exists other than as distorted calculation and end the processing with money in the bank and never have a statement showing that you were ever overdrawn!
Posted by Anonymous
Bank of America is routinely backdating transactions in order to generate overdraft fees. In the most recent example I successfully transferred 34 dollars to another BOA customer on-line. If I hadn't had sufficient funds, the system would not have allowed me to do the transfer. Then after midnight, the next day, BOA's systems processes a purchase for gasoline in the amount of ten dollars and backdates the purchase to the previous day, placing the gas purchase ahead of the on-line transfer which then "changes history" by making it appear as though at the time of my on-line customer to customer transfer, an overdraft occurred.
Again this is impossible because if this online transfer had in fact created an overdraft at the time it was done the bank would never have let me do it. It's only after the bank backdate’s the 10 dollar gas purchase and restates history, that the overdraft is able to occur. They are effectively rewriting history-injecting a transaction from one day into the previous day's transaction history and re-dating it to cause the overdraft in order to generate the fee.
What makes this particularly annoying and frustrating is the fact that I can use my Paypal card to make a purchase which then generates an ACH debit which is sent to Bank of America to pass along to my account. I wake up the next morning, confirm the debit has taken place which also happens to bring my BOA account negative. But here's the frustrating difference: in this alternative scenario I am aware of the negative balance-I cover the overdraft by making a cash deposit before 8 p.m. and Bank of America in this scenario CHARGES ME NO FEE.
Here's the difference in the two scenarios. In scenario number one, I am NOT made aware of the negative balance on the day that it occurs and am unable to resolve it because IT NEVER ACTUALLY EXISTS ON THAT DAY BECAUSE IT ONLY EXISTS AS A RESULT OF BEING BACKDATED AND SHOWING AS AN OVERDRAFT A F T E R T H E F A C T-AFTER HISTORY HAS BEEN REWRITTEN THE NEXT DAY.
Posted by Anonymous
i HAD A CHECKING ACCOUNT WITH BB&T IN DANVILLE WEST VIRGINIA BACK IN 2008 AND THIS BANK WOULD POST MY DIRECT DEPOSIT PAYROLL CHECK INTO MY ACCOUNT THEN AFTER IT HAS BEEN POSTED AND I USED SOME OF MY MONEY THAT WAS IN MY ACCOUNT.THE BANK WOULD TAKE MY MONEY OUT OF MY ACCOUNT AND THE MONEY I USED WOULD THROWN ME INTO NEGATIVE.THIS WENT ON AND I HAD A BALANCE OF OVER NEGATIVE CHARGES OF OVER 1000 THOUSAND DOLLARS.THEN THEN WOULD PUT THE MONEY BACK IN AND TAKE ALL THE OVER DRAFT CHARGES FROM MY PAY.WHICH LEFT US VERY LITTLE MONEY TO DO US TILL MY NEXT PAY WHICH WAS 2 WEEKS AWAY.THEY DID US LIKE THIS EVERY PAYDAY.THEY ALSO DID MY FAMILY MEMBERS THE SAME.POST IT TO THEIR ACCOUNT THEN WHEN THEY USED THEIR MONEY THE BANK THEIR MONEY OUT AND CHARGED THEIR ACCOUNT WITH OVER DRAFT CHARGES.WILL NEVER BANK WITH THEM AGAIN.THEY SHOULD NOT BE ALLOWED TO DO THEIR CUSTOMERS THE WAY THEY DO.NOW I HAVE CITY NATIONAL AND HAVE PROTECTION I PAY 7.99 A MONTH SO I CANT OVER DRAW AND BOUNCE A CHECK.BUT THAT DIDNT MATTER A FEW MONTHS LATER I HAD A CHECK TO BOUNCE.STILL PAYING THE 7.99 FOR THE PROTECTION BUT IT DONT PROTECT YOU.ARE THEY ANY BANKS OUT THERE THAT IS NOT TAKING OUR HARD EARN MONEY?
Posted by New Jersey
Business account was charged over $1000 in overdraft fees when the account never appeared to be overdrawn. Not a single employee at two different branches could offer an explanation. They only offered a $70 courtesy refund and initiated a 'research request' into the transactions.
Posted by Florida
I took a loan from B o A in 2008 for $35,000. The credit line was for $37,000 but I only borrowed $35,000. They charged me $1,000 for the transfer of the loan and added other charges that made the credit line go over without telling me. For over five years, I have paid them $804.00 a month. I have paid them over $50,000. They claim I still owe $30,000.
Posted by Minnesota
I have received several overdraft fees as a result of putting a hold on transfers between accounts, even though the actual cash was transferred immediately. Furthermore, I have received fees from what I believe is re-ordering of transactions.
Posted by Florida
Suntrust recently processed my largest transactions first, in descending order. Putting me nearly $500 in negative because of overdraft fees, and causing me to lose my paycheck this lasty payday, and the next. Essentially, it's like I was out of work for a month.
Posted by Maryland
Clearing most all of my transactions, ironically, when my balance is almost at $0 so that it overdrafts my account- the bank does this multiple times once I am overdrafted so that they continuously charge me a $35 overdraft charge multiple times. Excessively to almost $400 bi weekly.
Posted by California
I had no overdraft protection account, but the bank continuously chose to pay my overdrawn account so they could charge me $35 for ea. incident. They reordered the charges and charged me for dozens, upon dozens of incidents when i should have only incurred 1 fee. This went on for years. I complained many times.
Posted by South Carolina
What would have been one $35 overdraft fee ballooned to over $200 and caused a $500 direct deposit to bring my balance up to only $103. I would describe what the bank (Wachovia) did, as willfully participating in "usery".
Posted by Wisconsin
I have had to take out pay day loans to have gas and grocery money. I am claiming bankruptcy. I have had to pay thousands in fees, I have even been charged overdraft fees for the overdraft fee transactions!! Other banks in WI do the same thing so I can't change banks. If fact Chase gave me 2 x $3000 charge cards to cover the overdrafts, which of course were over the limit and at 26 percent interest shortly after being activated.
Posted by Texas
I had to pay several over draft fees because of the way they applied the charges. And every single transaction became an overdraft.
Posted by West Virginia
United Bank in West Virginia reordered my debits to my account allowing the largest (which was the last debit) to be placed first causing numerous overdrafts instead of just one. They have done this to me several times and each time it has cost me several hundred dollars each time.
Posted by New York
The bank stated the CASH I deposited was not immediately available to me for at least a day, and have charged me $35 overdraft fees for $2-6 purchases made.
Posted by Ohio
I have suffered over $3,000 in fees related to overdrafts due to insufficient information regarding balances and practices.
Posted by Texas
I would estimate the amount well over 2000 dollars, one of which the most recent, they charged me 140.00 on an account that had a transfer made to it prior to a payment. They bounced everything and held the credit until all others were no longer pending
Posted by Texas
I have been charged approximately $3,000.00 due to the bank overdraft fees which would not have resulted if the bank had ran the transactions as they truly happened.
Posted by Pennsylvania
Over the past year we have been raked over the coals with about 2500.00 in over the limit fees
Posted by Texas
because of their practice of processing transactions from highest to lowest amount, and not on when the transactions were received, I accumulated excessive fees from overdraft to returned check fee amounting to more than $700.
Posted by Maryland
Since end of 9/09 I have been hit with overdraft fees by TD Bank. These fees are hitting my account for items that have been authorized, but not posted. For instance, I had a $1.00 pending authorization on my account that had a .58 balance. TD charged me $35.00 for the transaction even though the merchant hadn't settled the credit card charge thereby causing a domino effect on my financial situation.
Posted by Idaho
My bank paid one check for 1000.00 before they paid 10 debit card purchases that were authorized 4 days before the check hit. They then paid all of the debit card charges from 4-65.00 so they could charge me 35.00 on each one. Then after that on another account, even though I was about 8.00 negative they paid a 29.00 automatic charge so they could charge me 35.00. They do this quite often.