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Overdraft and Deductions
Posted by
To Whom It May Concern:
This letter is in regards to the âBank of America.â I have had so many problems during the past several months that I just do not know what to do or were my rights are, or even if I have any rights!
Back in April I noted some fraudulent activity in my checking accounts. I called the bank and had both of my checking accounts closed as well as my savings account and my debit card. I made the necessary phone calls to all companies who had automatic withdrawals rights.
I then opened up two new checking accounts and one savings account, and received a new debit card.
When my social security check went in for deposit into one of my new accounts, it was bounced back to social security. After at least 5 phone calls, I was told by a representative one of the new accounts I opened (which happened to be the account that my SS check was to be deposited into) was closed for âunknown reasonsâ and the check bounced back to Social Security. I had to wait two weeks for that check. At the end of the month when my Disability Pension check was deposited, Bank of America also bounced that back. Again, I could not get any reason other than âIâm sorry, I canât figure out why this check was sent back.
Now, last week when my Pension was deposited, the bank deducted over $200 to put into that account that was closed, saying that I had several overdue bank charges because companies continued to try to deduct from it. One company whom I do not recognize tried over 5 times to deduct! I was charged all those $35 fees even though it had been closed for almost 4 months now.
I spoke with the manager of the Bank of America this morning and he told me the same thing that they have been telling me all morning â there was nothing they could do!
Even though I closed out these accounts, I am still response for any debit that comes in to this account and any type of bank fee.
From April 4, 2010 to June 27, 2011 this bank charged me twelve (12) overcharge fees each of $35.00 amounting to $420.00 in addition to the $214.00 that was deducted today! As I said this account has been closed since mid April, 2011!
This does not sound right to me. I know that some of the laws are unfair but I canât understand why there isnât a law against this! Why would I even close this account??
I hope that you can help me with this situation. I live on my SSDI and pension and I am still losing my home due to high increases in everything that we have been having. I cannot afford to give the bank $214.00 in addition to numerous $35.00 fees due to an account that has been closed since April, 2010.
Thank you for your time and consideration in reading this letter. I hope that you can help me.
Pamela J. Coupe
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spiderman2 on 08/08/2011:
Try contacting the Department of Banking in your state and see if they can help you out. Good luck!
bob93 on 08/09/2011:
Find out your rights (like spider says) and mention the 3 magic words to the bank manager - SMALL CLAIMS COURT. I'm sure they will be interested to know why the bank is charging you for a closed account.
madconsumer on 08/09/2011:
I recently went through this very same thing. I had to change all my account numbers for all my auto deductions as well as all my direct deposits.
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Bank Of America Hidden Charges, Overdraft Fees, Taking Thousands From My Family
Posted by
HUNTINGTON BEACH, CALIFORNIA -- This is the letter I wrote in response to getting involved in a class action lawsuit against Bank of American. It is as follows, it is quite lengthy.... and that is not all either...
Sent March 3, 2009
Hi... I am on Social Security Disability as well... BOA has been ripping me off for many years. I am a single parent and live penny to penny. Every time my checks are deposited into my account at BOA, I always end up in the hole for one reason or another. The latest reason was that, now mind you I have had my savings account with them for a few years. I was being charged all this money that was never charged before ... unbelievable.... I was told that I had a savings account that had to keep a minimum of $300.00 in the account and that I could not withdraw money from my saving more than twice in a month. I was never told that... I would/could never sign up for an account where I had to keep $300.00 or I would be fined... I am on Disability, as a single parent in California, with no child support. Then I was also charged for taking out money at the ATM more than 2 times in a month ... these charges just suddenly appeared. Never happened before... I don't get it... A few years back.... I was bouncing checks left and right ... albeit that I am disabled. I don't reason, I cannot focus, I get extremely confused at all the charges what they are for, so I am constantly bouncing checks.
So I am on Check Fax and it's all because BOA. I went in to the Springdale/Edinger, Huntington Beach, CA office a few years ago, with my daughter and my mother. I sat down with a gentleman and a lady who was obviously new. I asked for help ... he saw that I had been writing checks and they bounced... I was pleading with them for help, the man looked at me and, on a Friday, with the line out of the bank, continued to yell and scream at me that I am a snowballer... I asked him what that meant, and now my daughter was so embarrassed she went to hide in the corner, they explained to me that I write checks and bounce them all the time on purpose... That was not the case... I can't tell exactly what happened... All I know is I was using online banking at the time, I was working and had automatic deposit... They were taking literally thousands and thousands of dollars from me.
I would write them a letter telling them that they are taking the bread and butter from my daughter dinner... I didn't know what to do... I tried to go to another bank but I am on check fax..... so I can't.... This is all because of them... O. K. If I make a mistake, which I'm only human, I am the first to admit it. I went to the grocery, and forgot to write it down, so I ended up $130.00 overdrawn... I couldn't pay it... I make $1100.00 a month ... but I told them that I would pay it with my next social security check. In the meantime, I became very ill... I was about to loose my cable ... that is all I have ... so I called the cable company and they told me that if I gave them a check by phone for $47..00 that it would not go through for 3-4 working days ... that would put it at Tuesday. Well, as of Monday morning.
I was now $230.00 overdrawn for a 47.00 check. Now my rent check will bounce. I could loose my home... I have prior paperwork from years and years of abuse from them... I knew it was not me. When I went in to get help and they just laughed at me and called me a snowballer, the new girl, had a sassy attitude...They were both laughing at me... shaking their heads like they couldn't believe their eyes... well my mother had left and she told me in the car that the same gentlemen did the same thing to her about a different situation, but that he yelled at her in public, my Mom was in her 60's... very organized, had a lot money in the bank, never bounced a check, she had three accounts linked.....
Another time recently I went into the branch on Edinger in the Bella Terra Mall. I asked them for the same help... they just flat out said no... no one here can help you... call the 800 number.... I am scared every time I go to the bank... they have really... I'm not kidding, I'm not lying stolen thousands of dollars from me too... they must be stopped... please... we have to do what ever it takes to stop this. Please... I know I'll never get back anything... but to keep them from doing this to others especially in this day and age of our economic downfalls... and wasn't BOA given a bailout and did I read that the money they received they bought another bank??????? how absurd....
A SLAP IN THE FACE FOR AMERICANS, ESPECIALLY THOSE WHO ARE NOT WEALTHY.... I MUST SAY THAT THE EDINGER/SPRIGDALE OFFICE DID GET RID OF THE PEOPLE WHO TORMENTED ME.... THEIR ACTIONS REMAIN THE SAME... NEVER ONCE HAVE I EVER PUT IN THE LITTLE MONEY I HAVE AND WENT TO USE IT ONLY TO HAVE LESS THAN I PUT IN... I DON'T KNOW WHAT TO DO ANYMORE.... I WISH I HAD THE PAPERWORK IN ORDER... AND THE LETTERS... I WANT TO SUE THEM FOR THE MONEY THEY STOLE FROM ME AND MY DAUGHTER. AND I WANT MY NAME OFF CHECK FAX... IT DOESN'T BELONG THERE. IF IT HAD NOT BEEN FOR THEIR HIDDEN CHARGES, AND THEY EVEN CHARGED ME OVERDRAFT FEES FOR MY OVERDRAFT FEES.... THE LIST GOES ON AND ON... I AM JUST TRYING TO SURVIVE IN THIS HORRIBLE, HORRIBLE SOCIETY... EVERYDAY I DO WHAT I THINK OF AS A SPONTANEOUS ACT OF KINDNESS... WITH MY LAST DOLLAR a lot OF THE TIMES... I WILL NEVER GROW COLD, BUT I TELL YOU ONE THING.... WE HAVE ALL THESE SCAM ARTISTS FROM THE UK TRYING TO GET US TO DEPOSITS MILLIONS, ETC, ETC, ETC. I am sURE YOU ARE AWARE OF THEM... BUT IF YOU ASK ME... BOA IS BEING MORE FRAUDULENT AGAINST OUR COMMUNITY THAN ANYONE....
THEY HIDE FEES, THEY CHARGE FEES ON TOP OF FEES.... I HAVE SO MUCH MORE.... HELP ME TO FIGHT THEM...TELL ME WHAT I NEED TO DO TO TRY TO MAKE SOME OF THAT MONEY BACK... ONE YEAR I COULD NOT GIVE MY DAUGHTER ANYTHING BUT ONE MEASLY GIFT FROM Christmas... BECAUSE THEY TOOK MY MONEY... JUST LIKE MY APARTMENT COMPLEX IS DOING NOW... WHY DO I ATTRACT PEOPLE LIKE THIS? I DON'T UNDERSTAND... I NEED HELP... As stated above I can go on and on about the misuse of my monies that BoA has tricked me out of. you can e-mail me to (email@example.com) I am not usually on The e-mail I am writing from so stage performer would be the better place to contact me... I hope you can help... I hope I can help to save others... thank you for listening. SINCERELY, Victoria P.S. my Mom will testify about how they treated her... thanks again for your work... It would be nice to think that someone somewhere is on my side I'm always being ripped off... I can't take it anymore, please being as sick as I am ... this is not life the way it was supposed to be.... I don't like life anymore.
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madconsumer on 03/03/2009:
perhaps moving to a smaller bank or credit union would suite you better.
*Brenda* on 03/03/2009:
If you are unable to handle your finances because you can't focus and get confused you should appoint someone you trust as your power of attorney and have them manage your finances.
dan gordon on 03/03/2009:
I'm puzzled that you can't maintain $300 in a savings acct but somehow Bof A scammed out of thoasnads of $$. If you had that much $$ you wouldn't have been bouncing checks.
msnanny on 03/03/2009:
Perhaps it would be best if you just used cash and money orders.
BokiBean on 03/03/2009:
You can submit a claim form by May 2009 and get 78 bucks back in a Bank of America class action suit that they settled for $35 million.
Anonymous on 03/03/2009:
Well said Brenda
*Brenda* on 03/03/2009:
Thanks Ken. :)
It really sounds like the OP needs some help and having a POA would probably take away a lot of her stress. OP, I wish you the best and hope you can have someone help you out.
CrazyRedHead on 03/04/2009:
Is this a joke? I don't see anywhere where the bank is at fault here. None of these fees and charges are hidden, not even the overdraft charges. I don't see where anything was taken from you. In fact, it looks as though you have been giving them money due to your lack, or inability, to maintain your account. When you opened your account you were given a booklet that explains all the fees and charges that you would be incurring. You would have read in there that you have to maintain a balance. If you are unable to focus and handle your finances you need to either appoint someone to handle them for you or just close your account and use cash.
I don't see where the bank has scammed you out of anything. It is your responsibility to read the booklet that came with your account and to know the requirements of the account that you open. If your mother can handle her account without having a bounced checked or anything then you should sit down now and have her teach you the same thing. I'm not trying to sound harsh, but from the way this letter was written and what you described, you don't need a checking account. Also, you should keep a checking register and write down everything that you do in it, but in your situation I'm not sure even that would help. If your in the Chex system you'll be there for the next 7-10 years. If you continue this way of maintaining your account, you'll continue to have the same problems. If you close your account and do manage to get in with another bank, or even a credit union, you will continue to have these same problems, if you continue to maintain your accounts the same way. Also the bank has the right to close your account(s) for you due to you mismanaging your account(s), and if they do that then you are in a world of problems. They will end up ruining your credit if it isn't already.
I hope you will be able to straighten this out and get the help that you say you need, or this will just continue.
yoke on 03/04/2009:
None of this is BofA's fault. The OP admitted to writing checks that did not have funds to cover. She knew she was in the hole when she gave cable a check.
Victorianbelle on 03/10/2009:
I understand everyones opinions on what actually happened with me and B of A... No one has to beleieve a word of what happened... I cannot maintain 300.00 in my savings because I do not get that much money to save... and the thousands happened over a long period of time... granted, and as I stated in my comment... I do need help.. I asked for it... but I do not make enough money to warrant the help... also... monies were taken out of my account from so called online purchases... these were credited back to my account... and yes... sometimes... one must rob peter to pay paul... but I'm sorry my friends... not to the extent that B of A did with my and my families accounts... I have read many articles in major newspapers from coast to coast... Florida to California and the complaints have been the same... you can believe me or not... not here to win friends and influence people... just stating the facts on what happened to me... thank you for listening... g'day
Victorianbelle on 03/10/2009:
Bank of America
I understand everyones opinions on what actually happened with me and B of A... No one has to beleieve a word of what happened... I cannot maintain 300.00 in my savings because I do not get that much money to save... and the thousands happened over a long period of time... granted, and as I stated in my comment... I do need help.. I asked for it... but I do not make enough money to warrant the help... also... monies were taken out of my account from so called online purchases... these were credited back to my account... and yes... sometimes... one must rob peter to pay paul... but I'm sorry my friends... not to the extent that B of A did with my and my families accounts... I have read many articles in major newspapers from coast to coast... Florida to California and the complaints have been the same... you can believe me or not... not here to win friends and influence people... just stating the facts on what happened to me... thank you for listening... g'day
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Spurious Overdraft Fees
Posted by
VISALIA, CALIFORNIA -- I'm a disabled senior citizen attempting to get by on a $733 a month Social Security disability stipend. I have also been a Bank of America customer since first going on Social Security, with my SS checks going directly to the bank.
I have used BofA's free on line bill paying service for a couple of years or more, with no problems until now. This time when I paid my power bill to the Southern California Edison Company, somewhere between the time I sat down to make my little $55.84 payment and the time the bank's computer delivered the money to SCE it had lost a decimal point and the power company actually received $5584.00. I am absolutely sure I did not leave out the decimal myself and that it was dropped due to a glitch. But even if I am the culprit in that instance, it does not explain why they refused to correct the problem when I notified them about it.
For one thing, why did no flags go up at the bank, which had been handling my little $700 a month payday to payday account which had, for several years, never contained more than $1000 at any given time when I suddenly had a credit against that account for five times that amount? Shouldn't that have told them that something was amiss here?
Instead I get an email this morning (11/7) stating that there was a "problem" with my on line bill pay and to check my internal mail account. I almost ignored it because it looked like another one of the phishing scams where the perpetrators pretend to be BofA that come in my mail from time to time. For some reason, I decided to take this one seriously but by signing into my account normally, not by clicking the link in the email.
On the way through the web site to do this I looked at my bill pay payment record and saw immediately what had happened.
I fired off an email reply immediately telling them that someone has dropped a decimal point somewhere and that the actual amount of the payment was $55.84. No answer. These people had alerted me via email to a problem gave me instructions on what to do to take care of the problem, and I had promptly followed those instructions by explaining the true state of affairs. That should have been the end of it and at the very MOST, I should MAYBE have had a single overdraft fee although I still contend that they could just as easily have flubbed this one as me.
But a couple of hours later I get another email alert with the same information with an acknowledgment of my own message plus the notification that they will try again to extract the money from my account, even though they now cannot claim not to know full well that the money will not be there.
I replied once more also with the same info I had provided earlier and asked them please, do not try to debit my account for the spurious amount again.
Realizing I wasn't getting anywhere by email. I then called customer service on the phone and after wading through all the phone bots, I finally got to a human only to be told that there was nothing to be done about it, that they were going to make a total of three attempts to get their money out of my account, even though they knew it was not going to be there, before they canceled the payment request and that I would be charged an insufficient funds fee for every attempt they made.
This in spite of the fact that I had already explained to them what had happened three times now.
They knew full well that I was NOT going to put almost $5600 in that account to cover a computer error, just like they knew full well that the payment was not supposed to have BEEN $5584.
I told them that since I had notified them of the mistake as soon as I got their first email alert (this morning, the payment was made yesterday) they should not be making the second and third attempts and they said too bad but that was the way their system worked and that they couldn't stop it even if they wanted to, (and they obviously didn't want to) and that I would be charged the three fees for insufficient funds.
This was confirmed by yet another email a few minutes later. ONE overdraft fee would have been a lot easier to swallow if they had simply fixed the problem after being made aware of it but they are continuing to debit the account in order to charge me the maximum possible after they had been informed of the mistake. That dog don't hunt where I'm from.
To someone trying to exist of less than $800 a month, $100 skimmed right off the top is devastating. And multiply this by Lord knows how many other people who have made this or a similar mistake or worse yet, been caught in a trap of BofA's own making? Quite a number if you surf the Internet's consumer affairs sites.
All BofA cares about is collecting their fees and they'll stoop to outright defiance of court orders (re: Social Security/Disability payments) to do so. Well actually, that and, after getting me to forgo a paper statement every month to save a tree, sending me 5-6 pieces of junk mail every week trying to sell me 15 different kinds of insurance or get me to accept a subprime predatory credit card. (They also managed to "SELL" me one of those phony insurance policies over the phone through some sleazy telemarketer which I didn't want and didn't agree to and which they have been duly deducting $12 a month from my account for a year or so now.
Refuse to cancel the policy and claim they can't stop the deduction without the permission of the insurance company but they can't tell me how to get hold of the insurance company either. Another story).
This is going to cost them a customer of course as I will be closing the account as soon as its all straightened out and I can be sure they won't be coming after me for something else later.
I seriously doubt they look at little senior citizen accounts like mine as anything significant but there's no way I'll give these people another dime and will instead be going with a local bank here in town that at least makes the effort to pretend to value my business.
One hundred plus dollars (I'm assuming that the fee will be the same as a standard $35 overdraft fee but it may even be more) is a month's worth of groceries for someone in my position. It's the copays on my cardiac and respiratory system medications. It's gasoline for my car for a month to get my 5 year old grandson the 8 miles to and from Kindergarten on a daily basis. It can even be the difference BETWEEN those groceries and those medications.
But to BofA, it's just another $105 in their pockets multiplied by whatever number of senior citizens and whatever number of poor working clods they can do this to.
One single consumer web site, www.consumeraffairs.com , lists literally dozens of complaints similar to mine ( http://www.consumeraffairs.com/finance/bofa.html ) and there are other consumer web sites citing many of the same scams so it is not an isolated case. They appear to have lost one class action a few years back for confiscating people's social security and disability income to satisfy their lust for dubious fees ( http://www.consumeraffairs.com/news04/bofa.html ) yet this is exactly what they're doing to me now so they haven't even been slowed down by it. Their arrogance is simply amazing.
In fact, if anything they've become even MORE creative in figuring out how to scam their customers. They were even cited by members of congress in regard to a number of their predatory practices in this regard and named as one of the "big three" predatory financial institutions several months ago when the government was pretending to take an interest in protecting consumers from predators like this.
These people simply do things like this on a regular basis and they get away with it because their victims are the small and the weak with no resources of their own and nobody else cares.
It would be nice if something could be about these vultures stealing their customers blind on the flimsiest of pretexts, especially the elderly with no resources with which to fight back.
It's simply a grown up version of a schoolyard bully, taking lunch money because he can, from someone who can't fight back. They are being allowed to penalize people excessively for either an honest mistake which is then compounded by the bank not allowing for a correction of the alleged mistake immediately upon discovery or, quite frankly, a "mistake" on the part of the bank itself with no chance for any kind of defense by the customer or any effort to determine what happened. It's like being sentenced before your case ever comes to trial.
Either way, Bank of America, the WalMart of the banking industry, is not an institution whose hands the less affluent and the working class in this country need rummaging around in their pockets.
I'd like my hundred or so bucks back of course, but what I'm most interested in is the name of an organization or agency where I might be able to get some legal assistance and/or file a legal complaint against this predatory company if for nothing more than their continued confiscation of Social Security and disability benefits and maybe see them stopped from preying on seniors and poor people in this manner once and for all.
I have transcripts of the email exchange and their tacit admission that I contacted them in plenty of time to head off the imposition of three of these overdraft fees on this particular transaction and their outright refusal to do so. These concur with and confirm what I was also told on the phone.
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Tc1073 on 11/08/2007:
Not to be mean but how are you sure YOU put the correct amount in the bill pay site? Did you print a recepit showing the correct amount?
Anonymous on 11/08/2007:
If you want to complain about Bank of America, send a written letter via certified return receipt to: Office of the Comptroller of the Currency, Consumer Affairs Department, 1301 McKinney Street, Suite 3450, Houston, Texas, 77010-9050, Tel: 800-613-6743. Also, send a written complaint to your State Attorney Generals Office, Attn: Consumer Affairs.
Good luck.
Anonymous on 11/08/2007:
Even if it was completely your fault and you forgot the decimal point, the bank should have immediately recognized that something was amiss and put a hold on attempting to withdraw the funds until they had talked to you at which time they could have declined the transaction altogether.
If you have the email transactions of what happened, I strongly suggest that you follow TGTBT's advice and report them. I have made a similar error before and I know for a fact that any bank can stop a transaction, so even if they didn't think to hold the initial transaction until they spoke to you first to check for accuracy, they could have and should have immediately stopped it from the 2nd and 3rd attempt when you explained the error.
BoA Pissed Customer on 11/14/2007:
You go, Mrs. Lady! I Appreciate your tenacity, your dedication to your cause,l and I don't appreciatea bank taking advantage of our elderly citizens! Your letter is very concise and well written. I have NO DOUBT that you did exactly what you said, based on the letter you have written.
You have worked for what you have made, and for where you are in life, and a bank should not be allowed to take it away! You have KIDS that do that!
Take care, and don't take any crap off of BofA!
anthem on 11/20/2007:
.Trust me there are so many people out there that have the same story you have..
You should write to the consumer affairs of Ca and also the state attorney general office
I have had the same thing happen to me in a different way..
I am in the process of contacting attorneys to start a class action suit against boa..
for theare unfair business practices..
they have to make the money back somehow after writeing off billons last week.
when you try to talk with customer service they give you this lame excuse didn't you read your disclosure statement when opening your account!! who does even if you did read it
you would need an attorney to interpret what they are saying then its says refer to deposit agreement or your card agreement or your online agreement no straight answers GIVE ME A BREAK.......
Harlow on 12/11/2008:
Sir, I want to personally and respectfully call you an idiot who has no clue how things work in the real world. I am the villain here. I work for Bank of America's Online Banking Bill Pay and you are one of those people's calls I receive everyday for a stupid mistake that you just don't want to own up to.
First off, Bank of America has MILLIONS of account holder's. They are not going to see that some insignificant account holder forgot to put a decimal into a payment and then stop a payment for you. If you ask us to pay $1, we will pay $1. If you ask us to pay $1000, we will pay $1000. We do as you say. If you forget a decimal that is your fault and we aren't going to hold your hand if you forgot to add that very important decimal. Get over it. This is the real world not some special place where you have a safety net.
Second, once an electronic payment begins to process, there is no way to stop that payment or modify it. So if you don't pay attention and modify or stop that payment by 5 p.m. Eastern Time the business day prior your "Deliver By" date, it is going to go out for that amount. By LAW (per the Terms and Conditions) any banking institution is allowed to attempt no more than 3 debits to obtain their funds. Get over it. We don't differentiate between a Senior Citizen and a multimillionaire. These funds have to be processed and they go through the Federal Reserve and can not be pulled back after they begin to process. In Bill Pay, we pay that company from our corporate account on your behalf and then debit the funds from your account to pay ourselves back. If the money is not there, we attempt usually one more time two business days after. If we don't get our money back from you, the payment is then reversed and your payee does not get paid. That's that. If you don't like it then don't use electronic Bill Pay.
Finally, on the program we use for maintenance and assistance in Bill Pay, I am able to see ALL modifications made to a payment. I am able to see the exact day and exact time (down to the second) when a payment was scheduled and for how much it was scheduled for. So often I hear idiots, like yourself, insisting they put the decimal. I can tell you now, I have seen situations where there indeed was a banking error and in my program, I was able to see that the system made a change to a payment. Banking errors are extremely rare as I have seen less than 3 in time working for Bank of America. People just don't want to fess up to their stupidity. I guarantee this was your mistake. I have no doubts whatsoever. I myself have been using Bank of America Bill Pay for YEARS even before I worked for Bank of America and NEVER ONCE have I had a problem. Stop giving us your sad little stories about how you can't visit your grandson because of these NSF fees. This is a business, not the Oprah Winfrey show. Trust me, if Bank of America was running some scam I would not help them hide it. They don't pay me enough to do so. So just let this all sink in and come to the realization that this was your fault and quit bitc*ing about it like some 5-year-old.
old fart on 12/11/2008:
It's interesting that this review is over a year old... I guess you didn't see that did you Harlow..?
What other nics have you used on the site?
BOA SUCKS! on 05/15/2012:
I have unsubstantialted proof that BOA Bill Pay sumbitted my payments LATE, beyond the cutt off and yes, I gave them 5-7 days before the due date. What happened to me? Paid same bills for over 1.5 years setup on autopay. Credit card companies inform me I'm late. Notified 2 months later, go back and investigate to see the BOA was late. Credit card company charges me late fee, interest rate goes up, derogatory posted on my credit report and go into the branch to prove my case and get an apology letter to show the creditor. Creditor says sorry late it late. Know any good attorneys? Three accounts damaged as a result. Ps Harlow, you are a DICK! And I believe the old lady. Wish she re-posted so we could see how and how long it took for her to receive resolution.
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Overdraft Fee - comparison between a US Bank and a Foreign bank.
Posted by
The American public aren't aware that there are other fairer ways of dealing with overdraft if it should occur. The banks know, but choose to penalize and earn a short term profit than work with a customer to maintain a good relationship and customer retention and good will.
For the record, you should be maintaining a positive balance in your account so that overdraft penalties are not incurred.
Here is a comparison between two institutions.
I've chosen Bank Of America as an example simply because we have an account with them, and have experienced in proportionate overdraft fees.
1. 1st POS Purchase made, sends account into overdraft by $20
2. 2nd POS Purchse made for $8 on the same day sends account into overdraft by $28.
Comparison: Bank Of America
2 transactions causing overdraft = 2x$35 = $70 overdraft fee for $28 of overdraft.
Comparison: Commonwealth Bank of Australia
2 overdraft transactions totaling $28 incurs an overdraft fee of $0. Interest of 15.35% PA is charged on the negative balance. Calculated Daily.
For me to correct my overdraft within the day, I would need to pay the overdraft fee : $0, and the interest accrued on $28 for 1 day which is negligible. The bank has allowed me to correct my problem quickly and both customer and bank are both satisfied.
If anyone knows of another US Based institution that DOES NOT work like Bank Of America and has a fairer overdraft policy, please share it here so customers of the banks that do support this policy have another choice.
Again, you should keep enough funds in an account to cover with-drawls. However knowing that your bank is a little flexible and fairer means if there ever is a time when you overdraft by a little that you know you're not going to be penalized out of proportion.
"Bank of America (BAC) recently agreed to pay $35 million to settle a class-action lawsuit related to overdraft fees. The lawsuit alleged that BofA authorized transactions that led to overdraft fees and posted transactions in an order that increased such fees. BofA, in settling the lawsuit, denied the claims and said that its policies fully comply with federal law. The bank declined further comment on the lawsuit."
Bank Of America's overdraft policy:
"What is an Overdraft Item fee?
An Overdraft Item Fee is charged when you write a check or make a withdrawal for an amount that is more than the balance in your checking or savings account.
If your account is overdrawn by a total amount less than $5 on a day, we reduce the Overdraft Item Fee and charge $10 for each overdraft item that day. (The standard Overdraft Item Fee is $35.) If your account has a negative balance for 5 consecutive business days, you will receive an additional one-time Extended Overdrawn Balance Charge of $35 on the Sixth day.
Although Bank of America is not obligated to pay an item if your account is overdrawn, the bank will pay these items as a courtesy to you. If you are charged an overdraft fee, you can view complete details in your Online Banking transaction record by visiting the link associated with this fee. "
Commonwealth Bank
The interest rate for the Streamline Overdraft is 15.35%* p. a. This may be subject to change.
Quarterly loan service fee
Peak Debit During a Quarter Charge
Quarterly Fee
$0 : Up to $100
$9 : $101 to $500
$15 : $501 to $1000
$25 : $1001 to $5000
$35 : $5001 to $10,000
$45 : $10,001 to $20,000
$55 : $20,001 to $50,000
Here's an interesting read:
\6\ See, e. g., Overdraft Protection Hearing at 44.
In contrast, consumer groups assert that overdraft transactions are
a high-cost form of lending that trap low- and moderate-income
consumers into paying high fees. Consumer groups also state that
consumers are often enrolled in overdraft services automatically
without their request or consent. In addition, consumer groups believe
that by honoring overdrafts, institutions encourage consumer reliance
on the service and therefore, consumers incur greater costs in the long
run than they would if the transactions were not honored. Consumer
groups note, for example, that historically, institutions declined a
consumer's request for an ATM withdrawal or debit card transaction if
the consumer did not have sufficient funds in his or her account.\7\
Today, however, institutions are more likely to cover those overdrafts
and assess a fee on the consumer's account for doing so.\8\ According
to consumer groups, this practice can be particularly costly in
connection with debit card overdrafts because the dollar amount of the
fee is likely to considerably exceed the dollar amount of the
overdraft.\9\ In addition, multiple fees may be assessed in a single
day for a series of small-dollar transactions. Because of these costs,
consumer groups assert that most consumers would prefer that their bank
decline debit card transactions if the transactions would overdraw
their account.\10\
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madconsumer on 06/29/2009:
since this is America, your point is?
goduke on 06/29/2009:
You do realize there's a really easy way to completely avoid overdraft fees, right?
Anonymous on 06/29/2009:
Totally spurious post. Here's why. My personal account at BoA. I overdraw $50, followed by $25, followed by $10. My total overdraft charges: $0. Why? Because I have an overdraft line of credit with them. I would pay interest at an annual rate of 14% on the $85, until I pay it back.
This is the case with the australian bank. If you want to make comparisons, be sure and compare apples to oranges.
CrazyRedHead on 06/30/2009:
I've got a wild idea here. Why not use a checking regester and keep track of you incomeing and outgoing by writing them down (GASP!!!!). You can stop overdrafts by not spending what you don't have and keeping track of it yourself.
yorgib on 07/08/2009:
"since its America.." - ie lets ignore how the rest of the world operates because America does it the best and we can't learn from anyone.. sorry, that statement is ignorant and close minded.
"Because I have an overdraft line of credit with them" - Interesting! I questioned a senior bank teller 2 days ago about this difference, they didn't inform me that there was any such similar product but rather agreed and said "yes if BofA had that sort of policy it would be fairer" for the consumer.
So is this a special term you need to set up that the bank doesn't tell you about? Or do you have a specific account product that this comes with by default? Please share! :)
"You can stop overdrafts by not spending what you don't have and keeping track of it yourself."
Correct! Also remove automatic bill payment from the same account so that your funds you thought you had are actually there when you need them.
madconsumer on 07/08/2009:
yorigib, if you want to change the American banking laws, seek congressional changes.
MSCANTBEWRONG on 07/08/2009:
I don't think you can set up an overdraft credit line if you are consistently overdrafting your account. If you don't have the money in the bank, don't spend it. problem solved
jktshff1 on 07/08/2009:
mad, you are forgetting we are posting worldwide.
yor, And I apologize in advance... Yes, I don't care what the world thinks. I think the US should pull out of the usless nations, close our borders and do business on our terms. Need help with a disaster?? call Bolivia, France, North Korea, get the picture?
Name another country that so many people are trying to get into.....or that the US has not pulled their rears out of a ringer. Yet we burp and eveyone wants to say we got bad manners. Arrogant??..yes...we have earned the right to biatch with our dollars and lives.
yorgib on 07/08/2009:
madconsumer: I'm a little confused where in US Law does it specify that banks must operate overdrafts through the current fee structure?
I'm definitely not disagreeing that you should be penalized in some way, also not advocating for a better way to abuse over drafting either.
I'm simply trying to raise a point to consumers that there are much fairer ways for banks and consumers to deal with overdraft if it happens. Right now it's a system tiered towards banks ripping the customer off. Perhaps you're right congress is the way to change it because the banks won't listen to customers. They make big money from their overdraft policies.
"Bank of America (BAC) recently agreed to pay $35 million to settle a class-action lawsuit related to overdraft fees. The lawsuit alleged that BofA authorized transactions that led to overdraft fees and posted transactions in an order that increased such fees. BofA, in settling the lawsuit, denied the claims and said that its policies fully comply with federal law. The bank declined further comment on the lawsuit."
Of course their policies are within federal law - a large bank is not going to operate outside the law, however they can manipulate how they charge and when they charge to maximize profits. However my question is, why did they 'settle' if they weren't breaking the law?
madconsumer on 07/08/2009:
so tru jkt!
jktshff1 on 07/08/2009:
yor, It's called personal responsibility, and I understand that most of the countries of the world have written that off. Their 'gubment will take care of them.
READ the fine print, KNOW what the terms and conditions are.
In the US, we have the right to be, do and make of ourselves whatever we are willing to work for, we also have the right to have STUPID on our forehead, and there are a lot of those folks out there than are willing to admit it.
OverItsince2007 on 07/28/2009:
I got to tell ya, the whole subject of additional banking fees should be a moot point considering that the American taxpayers have handed billions of dollars to the banks in the form of bailouts. The banks should (if they cared weather you suffer or not) eliminate all fees for all taxpayers until the recession/depression officially ends. Imagine the shock of a person who is laid off and trying to feed their family to have their unemployment checks constantly eaten away by any and every fee that the banks can dream up... overdraft fees, inactivity fees, overactivity fees (in some cases), below the minimum balance fees... what else? If you're wealthy enough to brag, then you should also be smart enough to get your money out of the American banking system (which is still near collapse) and get into European or Swiss account and then hold on to your ass.
yorgib on 08/10/2009:
You're very right, bank fees are the least of American's worries.
"you should also be smart enough to get your money out of the American banking system (which is still near collapse)"
My savings funds and USA are mutually exclusive save what I earn and live on here. There is definitely a lot of strong evidence that the US economy and infrastructure is going to collapse. But don't worry people, it's free $100 at Bank Of America week for anyone who opens an account!! Squirrel!!!
"In the US, we have the right to be, do and make of ourselves whatever we are willing to work for, we also have the right to have STUPID on our forehead, and there are a lot of those folks out there than are willing to admit it."
You also have the right to fight unfairness. Consumers banding together can change the way things are done. But it seems most people are just too complacent to want to change anything.
BokiBean on 08/10/2009:
Bank fees to the tune of 38 Billion bucks a year are a very real problem.
Jen on 05/19/2011:
The biggest problem with banking these days is that everything comes out right away (during non business days/times) yet incoming deposits always take 24-72 hours and only during business hours. That's where people who live paycheck to paycheck have problems.
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Overdraft Fees... Are You Kidding?
Posted by
NEW YORK -- Unfortunately I used my bank card to purchase groceries and that purchase ended up over drawing my checking account. I didn't realize this until I checked my account online 2 days later, it showed I was $28 overdrawn, seeing as that I get direct deposit and it wouldn't post for a few days, I borrowed money and planned on depositing it the following morning, I checked my account on line before going to the bank to make the deposit, and to see if by chance my direct deposit went through, it hadn't and it now showed I was $40 overdrawn, I rushed down to the bank and deposited $45, and got a receipt that showed I was now in the positive $5. That was 2 days ago, I checked again on line to see if my direct deposit went through and not only had it not, it now showed I was overdrawn $100!!!! The order of my transactions showed my deposit of $45 posted before they decided to charge me $35 three times! I called the bank immediately and explained the situation to the customer service rep, I also asked her about the 5 day window, if you replace the funds within 5 days you avoid the $35 fees, she said no, and that is for extended overdraft???? I am absolutely disgusted, now when my direct deposit does go in, who knows how much of my monthly disability check will be left for me to live on.
I have banked with Bank Of America for years and I am extremely disappointed that this is how they treat a long time customer. As soon as my check is deposited, I will take out what is left and close all of my accounts with them! It feels good to vent, but it would feel better if they would waive the fees and stop stealing my money!
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goduke on 01/21/2010:
I'm pretty sure that you aren't going to find anything in writing anywhere about this mythical "5 day window" where you can cover an overdraft without the fees.
They didn't really steal the money. You kind of gave it to them. It's unfortunate that they don't feel it's right to help someone out, but BOA typically only does things that they have to legally, and don't feel bound by what they should do morally.
Anonymous on 01/21/2010:
They aren't stealing your money if you spend more than what you have.
Do you keep a check register or just rely solely on what it tells you online?
Online doesn't show you everything.
" I also asked her about the 5 day window, if you replace the funds within 5 days you avoid the $35 fees, she said no, and that is for extended overdraft????"
5 day window? If you overdraw your account with a purchase, you get hit with the fee. There is no 5 day window to cover an overdraft. That's something you need to take care of right then and there. The extended overdraft; that means if your account is overdrawn, you have 5 days to take care of that overdraft before you're hit with another $35 dollar fee... putting your account more into the negatives. If you have more purchases coming out, when your account is in the negatives, those will overdraft as well. Debit card purchases don't get returned, like checks.
Doesn't matter how long you've been a customer there. Their rules and policies have changed... and so the consumers who still have bank accounts there must move and change with them. And, if not, pull your money and go to another bank.
Just note, other banks (even CU's) charge overdraft fees if you spend more money than you had in your account. It's only, at the discretion of the bank, will they give you a courtesy refund of the fees.
Anonymous on 01/21/2010:
What should they do morally? This isn't even a question or re-ordering, none of the transactions would have been covered, it appears.
It may feel good to vent, but it would feel even better to manage your account and never get one of these fees.
Anonymous on 01/21/2010:
Regarding the 5-day window, dollars to donuts what the confusion is, after 5 days being overdrawn you begin getting a daily fee for remaining negative.
Anonymous on 01/21/2010:
I learned of that 5 days, then daily fee thing just from this site. Never knew BoA did it, and I've had an account since 2004 with them. Must be something slightly new-ish, because it wasn't there when I opened the account. But, then again, my account has changed with policy changes over the last 6 years. I'm sure there was notice sent at some point in time.
Anonymous on 01/21/2010:
Actually, I don't know for a fact that BoA does it (I've never been overdrawn), but many banks are doing it.
Anonymous on 01/21/2010:
On a related note....BoA announced yesterday they lost 5.2 BILLION (yes, will a B) dollar 4th quarter 2009.
Anonymous on 01/21/2010:
I'm not surprised.
Anonymous on 01/21/2010:
I smell another Bailout.
Anonymous on 01/21/2010:
naw wally, they had PROFITS of 2.2 Billion for the whole year.
Regardless, I wouldn't do business with BoA if they were the ONLY bank in the world.
madconsumer on 01/21/2010:
bank of America GAVE BACK the tarp dollars. as a stock holder, I would rather loose money than support persons with no ability to maintain a positive account.
Anonymous on 01/21/2010:
yes, I know they gave it back...never said they didn't. was commenting on their inability to run a business and learn from their previous mistakes. Come on, they had to TRY in order to have such huge loses in a THREE MONTH period.
AS for overdraft fees, yeah, I think some banks manipulate transactions to get the most fees. However, they cannot do that if folks learn to count and to avoid spending money they don't have. Simple concept.
madconsumer on 01/21/2010:
therefore, there cannot be "another" bailout.
Anonymous on 01/21/2010:
mad, I'm confused. Are you saying because BoA gave back TARP funds they are never eligible again for any sort of bailout? If so, I disagree. or are you saying because they gave back the funds there never was 'bailout"? if so, I disagree.
Anonymous on 01/21/2010:
It's a wild and wacky world of finance, but actually a loss like that is probably a positive thing. What it means is that they have classed a lot of loans as doubtful, so they have to take them off their assets, hence the loss. If the loans actually do default this year, they have already been accounted for. If they happen not to default, then they book as pure profit. Either way, it strengthens this year's position.
Anonymous on 01/22/2010:
I really hope so, Ken. I am tired of big banks, insurance companies, etc, putting silly spins on the messes they make and then expect the taxpayers to clean up.
Kathleen Goslee on 05/08/2014:
They are the worst,my paycheck was theirs before it was deposited,they stole a lot of money from me!
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Overdraft Protection?
Posted by
CHARLOTTE, NORTH CAROLINA -- In early October of 2009, my Bank of America checking account dipped below zero and I remembered I had overdraft protection, from my savings account. I made a mistake by not being more diligent, and for that I'm accountable. After a day or two, I noticed my overdraft protection was not being initiated, so I twice transferred money online from my savings to checking account. My savings had over $2000, so that was not an issue to cover what had happened. I then contacted a representative from the bank, and discovered that because my savings account was opened in Arizona, the overdraft protection was not valid. Funny thing is, I've never lived in Arizona! It was a shock to me, and had never heard anything like this, nor did I read this in the account terms. After listening to the rep, she put me on hold and apparently spoke to an on-duty manager. I had explained to the representative that I thought I had the overdraft protection, and requested Bank of America refund $245 in fees. Once the representative came back on the line, she informed me that based on my belief that I had overdraft protection, they would refund all fees! Now you can imagine my relief, and I was certainly embarrasssed by my mistake and allowing my account to drop to low. The representative mentioned that the refund would happen on October 12th, yet I believe she forgot it was a holiday. I waited patiently and never saw the fees refunded. I called another rep, and he had me speak to a manager. I've never been talked to in such a way, where I felt like an insignificant customer, and the manager was incredibly condescending. I questioned why he could not pull the phone call, so he could confirm what the representative specifically told me. I mean this is Bank of America, so why would overdraft protection be valid in any state. He could not explain why my overdraft protection did not apply, since my account was allegedly opened in Arizona, and I have never lived there! I am a full time resident in Texas! Instead of being accountable, he continued on with his condescending tone, and only refunded one $35 fee! I badly need the help, and I'm hoping this posting is a start. I felt like a small fish, in the oceans of a big bank. I will continue my fight to have these fees refunded to me.
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Anonymous on 11/24/2009:
I'd suggest going to your local bank and taking care of the issue. Not that the csr's don't know what they're doing, but the fix might be easier that way. I find I get a lot further if there's issues with my account in person rather than over the phone.
GE26 on 11/24/2009:
I did consider that option and still questioned whether or not a local branch can help me, in this situation. My concern is that they will not be able to pull the call, which is the evidence I feel I need to receive my money back. It's funny that We The People helped to bail out banks, and when it comes to asking for return help, it's nowhere in sight. Yet you know what, it's worth my effort. Thanks bearkatkitten.
Anonymous on 11/25/2009:
File a complaint with the federal reserve.
Anonymous on 11/25/2009:
I don't think the branches are able to pull calls. I'm not even sure if the service number records anything.
It doesn't hurt to try.
Hope it all works out.
112 on 12/02/2009:
I had $560 overdraft fees last month. I deposited $8,000 but did not know that my check was on hold. so I went ahead and paid my bills online. two days later there was 16 overdraft fees on my checking account. I called customer service right ago, she said "don't worry, once the check is cleared, we'll refund you all the fee". ha ha that did not happen. I called back several times and all of them said they could not reverse the fee for me. I told them that one of the rep said the fees would be reversed into my acct, I asked if they could look up in the system and find out who that rep was. They said they couldn't do that because it is agaist the policy. so I went to the branch office. the manager asked if I wanted to open a new account. I said no and started telling him my reason of visit. he basically sent me off his office and referred me to call customer service. Finally I got fed up and wrote the letter to the CEO of BOA. I was polite in explaining my situation. I sent the letter on Oct 16, 09. Oct 25, 09 I received a call from CEO office appologizing me about what had happened. He told me to check my acct again because he had just returned $560 of overdraft fee to my acct. I was so excited and could not thank him enough. He also said something about he had talked to those customer service and the manager who did not help me. try writing a letter to CEO. It worked for me. God bless.
PepperElf on 12/02/2009:
these days I ALWAYS check to make sure the funds are actually there before I try spending them.
Saying "I think the money is there" doesn't work.
GE26 on 12/03/2009:
Thanks for the information 112! I've been able to find out through the Federal Reserve and other sources, that banks can and do actually put transactions in the order that best benefits them. Furthermore, I easily had enough money in the checking account and for back up, I transferred $500 from my savings, just in case. Sure enough, they hit me hard anyway! What address did you send your letter to the CEO? Thanks again and We The People will continue to not only hold ourselves accountable, but also these big banks that continue to gouge us.
112 on 12/03/2009:
Hi GE26, please write to Mr. Kenneth D. Lewis: Bank of America Corporation Center 100 N. Tyron St. Charlotte, North Carolina 28255. In your letter, don't sound too angry. I'm sure they receive a lot of angry mail everyday. "I'm going to sue your a--" won't do any good. I took a different approach (force my self to be nice:) )I really hope it will work out for you. Please let me know how it turns out. God bless.
112 on 12/03/2009:
PeppreElF, I agreed with you. I have learned my lesson (the hard way) :(
PepperElf on 12/03/2009:
ya I made that mistake earlier this year
GE26 on 12/04/2009:
Good deal and I will send a professional letter, with a good tone involved. I work in a call center, so I'm familiar with protocol and what they can due to provide transcripts, once a customer requests a company to pull a call, etc. I also agree with PepperElf and it is on our shoulders as consumers to make sure we have sufficient funds, to cover transactions. In this case, I've busted B of A ordering transactions, to benefit them to make money, and I had sufficient funds to cover, plus transferred money from savings, to provide more of a buffer. It's no wonder the government is finally trying to hold these same banks accountable, something they should have done years ago.
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Is Bank of America listening?
Posted by
I heard about this on the TV this morning.
Bank of America Limits Overdraft Fees, Offers Customers 'Opt Out'
Bank to Introduce Daily, Annual Limits to Help Customers Better Manage Their Accounts
CHARLOTTE, N. C., Sept. 22 /PRNewswire/ -- Bank of America today announced several changes to its checking account options and services that will help customers avoid excessive overdraft fees and better manage their finances.
"We want customers to have clarity and simplicity in everything they do with us," said Brian T. Moynihan, president, Bank of America Consumer & Small Business Banking. "We started with the Clarity Commitment(®) in Home Loans. Last week, we announced a simplified credit card offering that includes an easy-to-understand Basic credit card. Today, we are announcing changes to the way customers can manage their day-to-day finances that will help those who need it most right now."
The bank has already increased its specialized efforts to work with those customers who are feeling the impacts of the current economic environment.
Additionally, beginning on October 19, the bank will:
Not charge Overdraft item fees when a customer's account is overdrawn by a total amount less than $10 for one day
Not charge overdraft fees on more than four items per day
Improve the process for customers to opt out of overdraft capability
Offer customers a Clarity Commitment(® )that spells out in clear, unambiguous terms what customers can expect from their deposit relationship with Bank of America
Effective June, 2010, the bank will:
Introduce an annual limit on the number of times customers can overdraw their accounts at the point-of-sale when they do not have sufficient funds to cover their transactions
Contact customers who are nearing the annual limit to provide education and tools to help them better manage their finances
Limit overdraft capability, and therefore fees, for customers who reach the annual limit
Provide new customers the choice to opt into overdraft capability at account opening
"Our immediate priority is those customers who excessively overdraw their accounts," said Susan Faulkner, Customer Segments & Deposits executive. "With these changes, we have increased customer choice in the area of overdrafts, limited daily overdraft fees, and significantly reduced fees for those customers who need help the most. We will also increase our proactive outreach to customers to help them better manage their finances and limit their overdraft ability, if necessary. Over time, we will build on this strategy to extend additional clarity and choice to services we offer."
Bank of America has a long history of helping customers manage their finances, including account management tools to help prevent fees, such as alerts and mobile banking, both of which are offered at no extra charge. In addition, the bank has helped more than 3 million customers so far this year through Customer Assistance and fee refunds.
The Customer Assistance Program offers customers who lost their jobs or are in hardship immediate fee relief, waiving the monthly account maintenance fee for three months and refunding fees for non-sufficient funds or overdrafts.
Mobile banking allows customers to receive e-alerts if their account balance becomes low. Since the launch of mobile banking in the spring of 2007, more than 3 million Bank of America customers have signed in to manage their personal finances "on the go."
Online banking is helping more than 29 million online banking customers track and manage their finances.
Bank of America also provides tools and resources to help customers manage their finances through an easy-to-navigate Web site at www.bankofamerica.com/learn. Aside from the changes outlined here, all other terms of Bank of America's Deposit Agreement and Disclosures and the Personal Schedule of Fees still apply.
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Anonymous on 09/23/2009:
I hope this is true. It was like Bank of America palooza complaints yesterday.
goduke on 09/23/2009:
July, 2010 -- complaint:
Bank of American returned one of my checks that I wrote even though I don't have enough money in my account. Now I have to go to court because the Attorney General has taken the case. Bad Bank of America!!
trp2hevn on 09/23/2009:
goduke, too funny! We already have our crystal ball out. Maybe when these people get fees from the merchant for bouncing checks, we are going to see a the same thing, just different names. I can see it now. They'll be blacklisted and won't be able to write anymore checks at certain stores. Then they won't be able to feed their families. LOL God forbid they learn to use a check register.
Anonymous on 09/23/2009:
I guess all the complaining and outrage did some good after all. This is a definite win for the consumer. That's why I never get down on people voicing their consumer outrage because if enough do changes will happen. It's nice to see BoA taken down a notch or two. I still wouldn't recommend doing business with them though.
yoke on 09/23/2009:
Nothing is going to change. Unless the check writer takes responsibility for their own actions and stop blaming the banks nothing will change. All this is doing is encouraging people to spend more than they have because the banks are not going to be as strict.
lobo65 on 09/23/2009:
They'll just find fees in other areas to gouge their customers.
yoke on 09/23/2009:
What I don't understand is why is it the banks job to make sure the customer does not OD their account and place limits as to how many debits are allowed to go into OD. When does the consumer take responsibility and not spend more than what is in their account.
By this summer we will be flooded with complaints on how BofA declined their debit card at the store.
Anonymous on 09/23/2009:
I dread that time, yoke.
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Overdraft Fees
Posted by
Getting my justice
CHARLOTTE, NORTH CAROLINA -- After having to bail out banks with my tax dollars from their irresponsible lending practices, I personally hold them responsible for this countries current situation. The banks continue to take money from the hard working people of this country by way of excessive fees.
I do not know if you are aware but when you have an accidental overdraft on your account, they pay the highest debit on the account first so that it creates a cascading effect on the account. This creates huge multiple overdrafts resulting in higher profit to the bank in overdraft fees because it leaves more transactions left uncovered by the remaining balance. In my case it was over $280.00 worth (8) 35.00 overdraft fees were assessed to my account 06/15/2009.
I had $69.05 in total debits including 2 unexpected, one for $20.00 on my daughter's automatic reloading Starbucks card, and the other $15.00 from my gym membership auto debit 2 days earlier than scheduled. It was an honest mistake. The largest debit of $34.00 paid first, followed by the $20.00 debit overdrawing my account. With $48.93 available in my account, the chain reaction began. If they had started with the smallest debit first, I would have had enough money to cover all my debits including the unexpected ones, except for the $34.00 debit resulting in 1 overdraft fee of $35.00 due the bank. That would be fair.
I work very hard for my money and live paycheck to paycheck since moving to Georgia. I currently live with my sister, a disabled Veteran. When I explained that I require a minimum of $210.00 returned to my account so I may meet my obligations for the end of the month, Customer Service refused. I even tried to negotiate and offered to let them have $70.00 to go to 2 of the overdraft fees which I thought was more than fair. Still they refuse.
We have put legislation in place to put the credit card companies in their place to protect the consumer, so what can we do to stop this continued abuse of the American people by way of excessive and abusive bank fees. We help bail them out and we are still getting screwed which could be aptly named "bank customer robbery".
The President and CEO of Bank of America will make almost 10 million in total compensation this year as outlined below. Why does his bank need to take my $210.00 which helps me make my obligations as a consumer in a recession? I will not stop until it is refunded.
Salary $1,500,000
Total Annual Compensation $1,500,000
Restricted Stock Awards $4,255,012
All Other Compensation $275,125
Exercisable Options 900,000
Unexercisable Options 1,158,333
Total Number of Options 2,058,333
Total Annual Cash Compensation $1,500,000
Total Short Term Compensation $1,500,000
Other Long Term Compensation $4,530,137
Total Calculated Compensation $9,959,076
Bank of America's code of ethics says "Trust, one of the core values on which our company is built, is also the foundation on which we build strong relationships with our customers, shareholders, communities and one another. Another of our core values is "doing the right thing."
I will leave contact info for the bank below for other customers dealing with the abuse of today's banking system. I would also appreciate any help in spearheading legislation to protect the consumer from this banking practice of maximizing profit by manipulation of debit transactions. This is financially devastating to a consumer living paycheck to paycheck. I encourage you to check on the following link to see more about the practices of Bank of America. Any word on another class action after the May 1st cutoff?
100 North Tryon Street
Charlotte, North Carolina 28255
Phone: 704-386-5681
Fax: 704-386-6699
Contact the Board of Directors
Corporate Secretary at Bank of America Corporation
101 South Tryon Street, NC1-002-29-01
Charlotte, NC 28255
Resolution Update 06/29/2009:
After wading through a mire of politics and faxing my complaint filed with the BBB. I was able to get a refund of the charges but it did take some effort. The old addage still holds true, "the sqeeky wheel gets the grease". I received a call from the Executive Level at Bank of America (Fax: 704-386-6699) on Friday, the woman was very understanding and explained that customer service has policies to follow and escalating beyond that dept was the right thing to do. She was very pleasent and understanding. Good luck to the rest of you and keep escalating. Keep your cool and be nice but firm, and I'm confident they will help you.
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Anonymous on 06/21/2009:
They debit larger amounts first so payments for rent, mortgage, car loans, etc will be paid first. It's common industry practice. All banks charge fees for overdrafting, not just BOA.
BokiBean on 06/21/2009:
Since BoA has already settled one 35 million dollar class action lawsuit for exactly this policy of stacking high to low debits...you'd think they would have a clue that consumers don't appreciate this kind of "help". But then, it would cut into their profit...
Anonymous on 06/21/2009:
If they are auto debits, how can they be "unexpected"? You set them up, you should know when they will occur and have the funds in the account to pay them.
Suusan B. on 06/21/2009:
There is no such thing as an unexpected auto debit - - you set them up on auto-pay and it is your responsibility to make sure you have sufficient funds in your account to cover them on the date you authorized them to be debited from your account. As far as the other NSF fees are concerned - - you were charged in accordance with your account holder agreement. Banks are going to pay debits in the order to maximize their fees and it is your responsibility not to give them a reason.
yoke on 06/21/2009:
You did not have the funds in your account and now want to blame the bank. Agree with Rob, your auto debits were not unexpected. You knew they were coming. When did you make the $34 debit?
Anonymous on 06/21/2009:
all banks do this yet the majority of complaints come in about boa. that's odd. can you imagine having to work for this loser outfit?
BokiBean on 06/21/2009:
Yet again completely minimizing the fact that the OP was willing to accept a penalty in the form of an overdraft charge (or even two), just unwilling to basically be financially raped by his own bank for their profit.
yoke on 06/21/2009:
KJ, most people who overdraft there account would be mortified to come onto a public message board and complain that they overdrafted their account and the bank charged them a fee. A fee you were well aware of when you signed up for the account. These complaints are actually amuzing to read.
Anonymous on 06/21/2009:
yoke, I'm tired of reading your cold hearted responses. could you do us all a favor instead and go ahead and explain that little lawsuit that boa recently settled?
yoke on 06/21/2009:
kj, they are not cold hearted. I am tired of reading these threads from people who can not keep track of their money and then blame the bank. If the funds are there it should not matter in what order the transactions take place.
tnchuck100 on 06/21/2009:
Getting my justice, there are a few here who understand your problem. We can see where the banks greed is being visited upon you mercilessly.
There are some here who do not possess the mental capacity to understand your situation. It is pretty obvious who they are by reading their extremely narrow-visioned responses. I really don't think they comprehend your post. That's just the way they are. Forgive them.
Moving on, close your BofA accounts and find a credit union. Most still treat their customers in a fair and equitable manner. Such can no longer be said for the big banks. Good luck.
yoke on 06/21/2009:
chuck, be honest with the OP. CU's will still charge you when you OD your account. Some here seem to think that CU's do not and give false information. They make it sound like when you go to a CU there are no longer fee's when you OD and that is false. They still charge you and they will also arrange your debits from largest to smallest.
tnchuck100 on 06/21/2009:
yoke, no one promoting credit unions here has EVER stated they will not charge OD fees. What IS said is they charge them FAIRLY. Not as BofA does by screwing their customers to maximum extent their greed can concoct. But you cannot see that.
BTW, most credit unions DO NOT reorder transactions largest to smallest. I KNOW mine does not.
Anonymous on 06/21/2009:
hey yoke, you still workin' on the answer to my question. or will you just ignore it?
Anonymous on 06/21/2009:
Just about everyone I talk to even ex BOA employees , agree that BOA is horrible bank to do business with.
Anonymous on 06/21/2009:
I had a friend who had certified check for 10 grand, and they still wouldn't cash it for him right away. Even though it was certified Guaranteed money.
secretinnovator on 06/21/2009:
during this recession, I'm not sure how they are giving crd. call back again and speak to another rep and request for crdt of 1 or 2 fees. be polite and give your explanation why you feel you need to be reimbursed. if they say no, call back again. speak to someone early in the am. they are more experienced. I work in customer service. I'm more invested to treat one with respect as they treat me with respect. If your cruel with anger or fustration, I will try to understand and still be pleasant but don't push me, I can say no.
secretinnovator on 06/21/2009:
I've been with boa for a long time. I have had some prob. the last time was trying to dep 2 checks over a year old from well known companies. well they didn't want to cash them bcz they are over 6 months old. I say deposit them. they say no. I say show me in writing. they couldn't produce it. I'm told if they bounce, I'm responsible. I say I don't care. these companes are bankrupt. they ended up checking to see they were cancelled previously, and deposited, the end of the story. been calm threw out helps a lot be able to reason and state your case without cussing someone out.
Anonymous on 06/22/2009:
Secret... look up 'stale dated checks' and Uniform Commercial Code' and you will have the detail you are looking for.
Getting my justice on 06/22/2009:
Thank you to those of you responding in a positive way. To clarify to those others who do not have the mental capacity, the Starbucks was set up for my daughter for auto reloading so it "was" unexpected due to the timing in which it came in.(my bad) Also the gym membership came in 2 days earlier than normal which was for auto debit for the 18th not the 16th. Again unexpected. I have no problem paying penalty for my error but not in the tune of $270.00 through manipulation of debited amounts, including the order in which they come in. That is nothing short of usurious and an abuse of my trust. I will continue to be professional and firm in my commitment for a resolution. It's one thing to take responsibility, but its another thing to be kicked in the teeth while doing so.
For those with the lacking mental compacity,
u⋅su⋅ri⋅ous [yoo-zhoor-ee-uhs]–adjective 1. practicing usury; charging illegal or exorbitant rates of interest for the use of money: a usurious moneylender.
2. constituting or characterized by usury: usurious rates of interest; a usurious loan.
BokiBean on 06/22/2009:
Getting, exactly! People understand that when they overdraft there is going to be a penalty, but what BoA does should quite frankly be illegal.
PepperElf on 06/23/2009:
yeah but in order to make that illegal they'd have to change federal law
and I doubt that'll happen any time soon
fangthane on 07/07/2009:
Fact is they ream you all they can and its not always the fault of the person that overdrafts, its just convient for you to say that. Lets say you have $100 and you spend $80 shopping which you carefully write down, this leaves $20 in the account, it posts right away. of that $20 you spend $1 2 different times and $2 for a 3rd purchase. that should leave you with $16, now I drop into my local gas station and tell em to put in $15, he swipes the card to authorize it, but unknown to you this station doubles the charge for the authorization (common practice. ) Now you have over drafted 4 purchases due to no fault of your own. of course when the gas station charge finally goes from pending to posting for the original amount its to late. I got charged twice yesterday for the same overdraft and it shouldn't have even been an overdraft in the first place.
Eloise on 07/07/2009:
I obviously have the necessary "mental capacity" to realize you overdrafted your account. This is YOUR responsibility and no one elses. You think that the bank should stand up and take responsibility for the current economic crisis yet you can't accept the fact that you caused a overdraft. Pot meet Kettle!
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New Overdraft Policy
Posted by
Bank of America has changed their overdraft policy to receive the most amount of fees from the customer. Under the only policy overdraft fees were not applied to the account until a transaction had posted negatively. Meaning if you purchase something and your account was pending negative, you could transfer money or make a deposit to stop from occurring a $35 fee. That is no more. The second you swipe your card if your account is even a penny negative you will receive a $35 overdraft fee. Now I can't really be upset with that aspect of the policy, as you shouldn't be spending money you don't have yet. Like most I have "floated" a transaction the day before payday when I need something like gas (why is it that you always run out before you get paid!?) and I've been burned with overdraft fees in the past, but I didn't complain as I knew it was a risk I was taking. However there is a HUGE problem with this policy.
On 7/5 I had made 5 purchases, with more than enough money in my account.
Then again on 7/6 I made 5 more purchases, still with plenty of money in my account.
On 7/7 I went to the doctors, and this is where the problem begins. The doctor overcharged me, I noticed the charge but not before she had swiped my card. This charge put my negative in my account. The billing office figured out where the mistake was made and refunded my money, but we all know money comes out right away and is very slow to return. So the charge from the eye doctor was a pending transaction, I did some math and borrow some money from my boyfriend to cover the rest of the charge so it wouldn't post negative. Little did I know of their new policy. Later on that day, my purchases from 7/6 posted to my account. Tuesday morning I woke up to 5 overdraft fees, even though at the time of purchase for those 5 transaction I had money in my account( and still had money at the time they posted as the doctor charge was pending).
On Wednesday I was able to get the bank, where after speaking to someone, she informed me of the new policy and told me all she could do is reverse 3 of them, and then tried to tell me that even if the doctor had charged the correct amount I would have still been in the same situation. I went home and wrote out my transaction in the order that they occurred and found that if the doctor's charge was correct, everything would have cleared just fine.
I wake up Thursday morning with 5 more fees, this time for the 7/6 purchases. Again these purchases would have cleared if it hadn't been for the incorrect from the doctor, and at the time of purchase(which BOA is using to asset the overdraft fees) there was money in the account.
I went back to the bank on Friday morning with my proof that the transactions would of clear had the doctor charged the correct amount. Now the bank told me I had to get proof from the doctor stating that $XXX was being refunded to my account as I was overcharged, and that she didn't have the time to look at it now and would call me back as soon as she figured it out. I had the doctor fax them a letter and hoped it would all work itself out. Later on that, the bank manager called me back to tell me that it was all fine, and all fees have been refunded. I thought my drama was over, until I got home from work and found that she only refunded the last 5 (which meant I still had 2 that didn't get refunded) and on top of that, the doctor's incorrect charge had FINALLY posted, which gave me 1 more overdraft fee. At this point I had been charged $385 fees and had $280 refunded. I can't get any of it fixed until Monday, meaning I haven't had access to my money for a week. I understand all of this happened as a result of the doctors mistake, however what I find very upsetting is that BOA is essentially penalizing based on 2 different methods for overdrawing the account once resulting in lots of money from them.
If BOA is going to asset fees on how much money is in the account at the time of purchase, then my transactions made prior to the doctors, should have cleared without any problem. Instead they are charging fees based on one pending transaction, and the posted transactions that follow.
I appreciated the local branch for working with me on all of this, but BOA policy has left a sour taste in my mouth, and as soon as I can, I will be switching banks. Any Suggestions!?
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tnchuck100 on 07/13/2008:
You are only one of many, many people who have fallen prey to their legal but unethical creative accounting methods. When you opened the account you agreed to their terms.
The best thing you can do for yourself is close your Bank of America accounts. Find a credit union. They treat their customers far better than the big banks do. Good luck.
madconsumer on 07/13/2008:
"You are only one of many, many people who have fallen prey to their legal but unethical creative accounting methods."
it all starts with the account holders ability to make accurate checks and balances. the poster admitted to floating money in their past. those days are long gone.
I have never ever had any issues with bank of America. been with them for many many years.
credit unions are for people who cannot handle true banking.
Anonymous on 07/13/2008:
Mad, dear, I really have to take issue with the statement, "credit unions are for people who cannot handle true banking." I was a member of Society, now Key. I deposited a paycheck, and then they couldn't find it. It never went in my account. They heavily inferred I was a liar until I went home and came back with the receipt. I had been with the bank for a while, so I gave them another chance. They did this again ONE month later. I decided to try it again with Ohio Savings Bank, now National City. They double charged me every time I used a debit card and I repeatedly had to go in and have them fix this. I think they were hoping I wouldn't notice. When I had a BoA credit card, they tried every trick in the book to put extra charges on me, even though I paid the card off every month before the bill even came, including trying to late fee me AFTER I had closed the account with a zero balance. Is this true banking? If it is, you're right. I can't handle it.
tnchuck100 on 07/13/2008:
madconsumer, give it a rest! These complainants couldn't care less than you have been with BofA for years and have had no problem. It does not help them at all.
If you had comprehended what the OP had written (something you seem to fail at more often than not) you could have seen that even a check register would not have kept BofA from nailing him. He admits one overdraft fee was probably warranted.
old fart on 07/13/2008:
I have used a variety of conventional banks over many years..I take exception to the comment,"CU's are for people who don't understand true banking"..credit unions function like banks, look like banks and except for their charter ARE banks..
A CU's advantage is their inherently local connection with the people that they serve and opposed to the mega-banks that you are so fond of, the only thing one can assume is that you are an employee of BofA..
All I can say is, run, do not walk to your nearest credit union if you want personal service as opposed to the "gotcha" attitude of the mega-banks..
old fart on 07/13/2008:
Additionally Mad consumer, I haven't had an overdraft in decades so I speak with some experience...
yoke on 07/13/2008:
What did BofA do wrong? All they ask is that the money is in the account that you plan on spending. The problem started with the doctors office. Go talk to them and show them what they did to your account when they overcharged you.
Connie159357 on 07/13/2008:
True I did admit to floating money in the past, however that is not what happened here. My complaint is with BOA new policy and how it it penalizing me based on 2 different methods of assessing overdrafts fees and the ethics of the new policy. They either need to say the money has to be in there at the time of transaction OR when it post. This isn't fair banking practices.
madconsumer, What happens when you go to the gas station and they over authorize your account for $100 when you were only putting $20 of gas in and you only have $30 in your account? You will receive overdraft fees. Does that really sound fair, you spent less money then you had but are still out are the $35 overdraft fee. You've kept accurate record of your purchase, but oh well in BOA's eyes.
yoke, your reading comprehension is a little lack, I suggest you fully read what I posted before adding comment, but I'll clear it up for you. Yes doctor overcharged, yes doctor admitted to overcharging and said so to the bank, bank unfairly charging me, not the doctor. Bank is giving me the money back(although rather slowly) Problem lies with method of fees and new policy. Perhaps that is easier for you to grasp...
yoke on 07/13/2008:
connie, I read it correctly. I was trying to be nice about YOUR error. You did not have enough in your account to cover your doctors bill, when they overcharged you. It was your responsibility to make sure the funds were there when you made the debit. Even though the dr's office overscharged it was still your job to make sure the funds were there, even to cover the error. You did not and now you want to blame the bank. You were cutting it close and lost.
tnchuck100 on 07/13/2008:
yoke, did you read your sentence after you wrote it? "...it was still your job to make sure the funds were there, even to cover the error." How would you propose anyone can make sure they have enough money to cover someone else's error?
If you make a $100.00 purchase and the merchant mistakenly debited your account for $1100.00 are you supposed to maintain an $1100.00+ balance at all times just in case? Absurd!
If you understood what connie wrote you would be aware that BofA re-processed as many transactions as possible to maximize their fees.
I don't believe some of you will ever understand what the banks are doing is unethical (I did not say illegal, tho it should be) and only demonstrates corporate greed.
yoke on 07/13/2008:
tnchuck, I understand what you are saying, but it was her job to make sure the amound was correct before authorizing the debit. She did not. It was not until after she realized the amount was wrong. I mentioned that she should bring it to the dr attention since it was their error that made all the overdrafts.
tnchuck100 on 07/13/2008:
yoke, you still don't get it. She and the doctor made one mistake. The bank parlayed that into 11 overdraft fees.
yoke on 07/13/2008:
chuck, I do get it. She should talk to the dr office and have them pay for all the overdrafts. It was their error, not BofA's.
tnchuck100 on 07/13/2008:
There are none so blind as those who will not see.
madconsumer on 07/13/2008:
roll eyes at chucky .......
*Brenda* on 07/13/2008:
I understand that the bank has to make their money but in the case of a true error that the OP was unable to control it's unsettling that they wouldn't work with her and just charge the one fee which she could then have looked to the DRs office to reimburse her for.
Anonymous on 07/13/2008:
TD Chuck, I get what you are saying. If I have $1000 in the bank and the merchant or whomever accidentally hits $1001, I get an overdraft fee. THAT SUCKS...and I'm glad this OP told people of this. By the way, I love my credit union. My house loan is through them. Last year, I did $7000 worth of improvements on my house (along with the $17,000 the insurance company spent because of a horrid hail storm) and I screwed up my checking by inverting two numbers. I overdrew by two dollars. My credit union took the money from my savings and covered it. Do you know my fee? NOTHING. NADA. ZIP. ZERO. This is what Old Fart is talking about. They know me. I'm not just a number.
katie kaboom on 07/13/2008:
BOA is HORRIBLE! And to the people who have been with them for years and years without any problems, YOU are one of the lucky few. However that does NOT mean that every single person who gets hit with overdraft fees from BOA is just horrible with money and I really resent so many people implying that it does!
Connie159357 on 07/13/2008:
yoke, you still don't get the issue, I am not upset with being charged the fees(well a little bit I am as I have no access to money until its fixed) my complaint with BOA's policy and how they are using to fatten their wallets. I am getting all of my money back in fees, it's just a matter of time. It is the actual policy that is wrong!
jktshff1 on 07/13/2008:
Brenda...good answer..I agree, it's the Dr's fault and he should be the one to reimburse the customer.
Connie, BOA is looking after its stockholders interests ie, making them money.
You are correct in switching banks if you don't agree with their policies. There are a few businesses that I could spend less at, but I don't because of different policies they have that I disagree with. Speak with your pocketbook (not that it matters to a large corp) but if enough people did it and followed up with a letter stating why, it might get a change in policy.
Anonymous on 07/13/2008:
"Connie, BOA is looking after its stockholders interests ie, making them money. "
Yes, this is exactly who BoA looks out for, because it sure as heck isn't the customers. And I don't think the doctor's office should have to reimburse for this. It was a mistake. The bank needs to understand crap happens and not pounce and punish with this new policy.
grandma005 on 07/13/2008:
This is why you should use a credit card or pay cash. Why do people use debit cards when they know that their account is low in funds? You should have taken cash out to make your purchases and you probably would not of spent so much money. Surveys say that you spend less money when you are paying cash. Stop beating up on Madconsumer-she is right. You have to handle your money better. Make up a budget,use the envelope system, You are playing with fire when you use that debit card. You either have to have a large balance or be very very careful with swiping your card. When you are living on the edge you have to know how much money you have right down to the penny.
jktshff1 on 07/13/2008:
sherdy, the mistake was clearly the Doctor's and is costing BOA and you money and time to fix it. Why shouldn't the Dr be responsible for the charges?
BOA (as much as I don't like them) made no mistake at all.
Anonymous on 07/13/2008:
Overcharging happens all of the time, in this office, in retail stores, in grocery stores, etc. How many times have we all noticed something "came up the wrong price." There is no way to hold businesses accountable for this stuff in regard to them paying someone's overdraft fees because the problem is universal and happens a gazillion times. The girl in the doctor's office probably hit a wrong code...it happens. See what I mean? The better solution is to change things on the bank's end, but they are counting on human and computer error so they can pounce.
Connie159357 on 07/13/2008:
Here's example of how else this policy can come back to bite you:
Say someone has $100 in their account, on Monday they buy a cup of coffee for $5. Now there account is really at $95, although that charging is still pending. Then on Tuesday they go to the gas station and put $25 of gas in their car. The gas station authorizes your account for $100. This shows as a pending transaction of $100, even though you only spent $25. BAM $35 overdraft fee. Then on Wednesday, your purchase for the coffee posted, BAM another $35 gone. On Thursday your gas purchase posts as $20, but its too late. You've now spent $100 on $25 worth of gas and a cup of coffee and your account is left at $0.
Does that sound fair to you? If so, run to BOA and sign up for a checking account cause that's what you'll get!
jktshff1 on 07/14/2008:
sherdy, "the girl in the drs office probably hit a wrong code"
not your fault, not the banks fault, drs office fault..it called accountability.
tnchuck100 on 07/14/2008:
When the customer makes a mistake the bank imposes a penalty.
When the merchant makes a mistake the bank imposes a penalty.
When the bank makes a mistake there is no consequence.
Banks are out of hand. Their methods are unethical. Designed entirely to produce the maximum fee revenue. Plain and simple.
Anonymous on 07/14/2008:
Amen, Chuck, Amen.
jktshff1 on 07/14/2008:
tnchuck, I agree with you, but in this case it is no fault of the bank.
tnchuck100 on 07/14/2008:
jkt, whose fault is it that the bank is so gluttonously greedy? Well, I think it is the public at large for putting up with it. The general public is why most corporations get away with the crap they do. Most people just roll over and take it.
In this case one overdraft fee would have sufficed. But banking greed says it shall be otherwise.
jktshff1 on 07/15/2008:
It is the shareholders that demand more return on their investments that drives the profits.
Micky10 on 07/23/2008:
I had the same type of situation and didn't realize the change in policy until I called to straighten it out today. They did not refund my charges stating that I had a negative balance on the 21st...however I looked online and there was not a negative balance. I made a deposit the following day - but by then the mythical negative balance had occurred. A negative balance never showed up on my account and the only way I can find out what happened that precipited the charge would be to go into a service center - which I will do tomorrow. The alleged pending transactions were not paid until days later. I can not believe they can charge you for an overdraft without showing the negative account amount. I will change my account to another bank as soon as possible.
Beware - they also shuffle amounts already paid so what you see online is not what is really happening.
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New Overdraft Fee Policy Will Send You Reeling Into Debt!
Posted by
CHICAGO, ILLINOIS -- Bank of America has implemented a new overdraft policy called "Signature Debit". What this means for us is all debit card transactions are now kept in "real time" so essentially you are allowed to overspend and swipe your card to spend money you DO NOT HAVE!
Here's how it works (I finally learned this after spending $1500 YES 1500 in OD fees with this new policy) and it's not hard to get to that amount of fees.
-When you use your debit card the money comes out immediately for 24 hours and is then put back into your account if a Merchant does not claim their money within that 24 hour period (mind you it takes approx. 4 days for a Merchant to claim the money). This will happen Monday-Thursday. On Friday,Sat, Sun. (and holidays) your may swipe your card and these holds DO NOT Fall off until MONDAY after 3pm (this is when the do processing) At that point everyone that you have swiped for earlier in the week comes back to claim their money and now since you have been allowed to spend money you really didn't have you will have overdraft fee's that will send you soaring! They used to charge 8 per day now they have cut it down to 5. So essentially if you show a $300 balance that is NOT YOUR BALANCE REALLY. The only way to avoid this is to keep a paper register. You can and I promise you WILL spend money you don't have and I must say...this is quite an elaborate scheme. Now that being said, this IS MY LAST week with BOA.
I work way too hard (Nor am I rich) to give away $300-500 per week. So LONG BOA!!! and don't be surprised if the RUDE AND UNPROFESSIONAL rep you speak to cannot explain why you had $600 on Monday and -$2000 on Tuesday. It took me like I said ($1500) before I figured this theft tactic out....JUST LEAVE!!!
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yoke on 07/08/2008:
How is it BofA's fault you don't do a paper register?
spiderman2 on 07/08/2008:
That's how I do it too. When I write a check or swipe my debit card, I write it down and consider it gone. I don't float money to myself. That way, you don't spend money you don't have. You must have been floating yourself a whole lot of money to incur that much in overdrafts.
Anonymous on 07/08/2008:
Okay, so let me get this staight. You use your debit card and because the bank hasn't registered the debt, you spend more money than you actually have and you are mad because they charge you fees for overdrafting your account? My ex mother in law's philosophy on check writing was: if there are still checks in the book, there is money in the bank. Uh huh, right. This poster is basically following the same idealism. Not a valid complaint against BoA.
*Brenda* on 07/08/2008:
I will not spend more money than I have. I am not irresponsible.
Suusan B. on 07/08/2008:
Although I'm not with BofA, I absolutely do not spend money I don't have and mantain a contstantly balanced paper check register. Your responsibility as the account holder is to know how much money you have available to spend and if you go over that amount you will be charged overdraft fees. If you maintain an accurate check register it shouldn't matter what order the checks/debits are deducted.
madconsumer on 07/09/2008:
I have been with bank of America for many many years. all with zero issues.
let me get this straight, the poster is mad cause they were charged overdraft fees when 'they' over spent their money?
when will people learn, ALL BANKING NO MATTER WHERE YOU BANK, IS SUBJECT TO 'YOUR' ACCURATE CHECKS AND BALANCE.
geesh ......
jktshff1 on 07/09/2008:
I believe everyone else has answered very well.
It's call personal responsibility. No disrespect intended, but it's usually a persons own fault if they spend more money than they know they have. Keep better records.
Ponie on 07/09/2008:
I read this so-called complaint until I got to '...you are allowed to overspend and swipe your card to spend money you DO NOT HAVE!' I could see it was another of those yawners. The responses reflect my sentiments exactly. If you don't have the money, don't try to spend it, even if you're 'allowed' to.
old fart on 07/09/2008:
All complaints about banks "allowing" their customers to overspend on their debit cards should be blocked from the site..those debit cards are the same thing as a written check and need to be treated as such!
Stop whining and take responsibility for your own finances Mrcolem!
old fart on 07/09/2008:
I'll give you very good odds that this poster has their credit card maxed out!
MRM on 07/09/2008:
I agree, Old Fart, I agree with the first comment you have made.
Anonymous on 07/09/2008:
I am now convinced that before opening a bank account, a person should be required to take - and pass - a banking course.
old fart on 07/09/2008:
When I was young, (a very long time ago), I played the credit card-debit card game myself... It took a few real financial shocks to teach me that it is not a game to be played because the banks and C/C companies are better bookkeepers than I am..I can empathize with the poster but I cannot sympathize with him...
tnchuck100 on 07/09/2008:
Bank of America is very capable of screwing customers out of their money with questionable, but legal, tactics. But, in this case, YOU handed it to them on a silver platter.
Anonymous on 07/09/2008:
You said it yourself: "The only way to avoid this is to keep a paper register." When did the need to do this ever go away? Unless you either cut up the debit card, or learn to manage your account, you'll have exactly the same issues no matter where you go.
CrazyRedHead on 07/09/2008:
It just boggles the mind how some people can't manage a checkbook or take responsibility for their own dumb actions. If this is how you manage your bank account, how in the world do you make it day to day?
MRM on 07/09/2008:
Don't put your money in the bank and just keep the cash at home so that you will not have anymore overdraft fees. Toodles...
Chakisses on 07/24/2008:
Gee, I'm really sorry that you received so many fees. BUT, your explanation of the way the process works is incorrect, especially the 3pm processing and the transactions falling off after 24hrs. Obviously, as you may be able to tell by this point I work for BOA. I'm not one of the rude ones either. I genuinely feels bad for most of our customers who end up in this situation. But not the ones who intentionally overspend and then get upset that the Big Bad Bank charged them Overdraft fees
PolishGirl on 07/26/2008:
All that I can say in your case is don't spend what you don't have. Keep track of all of your transactions in a check register. Don't blame BOA, blame yourself, you definently need a little financial counseling if you received $1500 in overdraft fees. As soon as your card is swiped, consider those funds gone. Do not float your funds until the next day. It takes up to 3 business days for a transaction to posts. So if you get an airplane ticket, for example, the card is swiped, the funds are deducted one day, put back in your account the next, and the transaction posts to the account as a deducted transaction when the airline turns in the final sales draft to the bank. Keep that amount deducted in your register regardless of when that item posts. It is a well known fact that if swipe the card, it may take up to 6 months for the debit card purchase to finally posts, although the majority do post within 3 business days. My advice to you is that you definently need to speak with Suzie Orman.
Anonymous on 08/17/2008:
Why don't you just open an overdraft line of credit?
Citi allows people to do that on their checking account. I have two.
Sure you pay credit card like interest rates – in the teens, but that can sometimes be less than $35 each time you overdraft. Particularly if you are overdrawn by a few days and catch it only then and can replenish with new funds .
I think it works automatically. When you overdraft it transfer funds from the LOC to the overdrawn account. Then when you have enough funds to pay back the LOC in full it transfers funds to the LOC to pay it – the principal-- off. Interest charges are a line item on your checking account.
Does BAC offer overdraft line of credit? Can you add it?
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