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Guaranty Bank / Possibly lllegal and certainly unethical fees

1 WI, United States Review updated:
Contact information:

Keep in mind that even if you do opt out of "courtesy overdraft service" there are still circumstances where the bank can still charge a fee for transactions made with you card. Here's my horror story about Guaranty Bank of Wisconsin: I had a payment through Paypal with my Visa check card that was wrongly coded as reoccurring even though I had not authorized it. They did not have my account number so it was a pin-less debit transaction using my Visa number. It overdrew my account by $6.00. As I was not expecting any transactions on my account I was not logging in to check my balance. By the time I got the letter from my bank it had been several business days. At that point in time after 3 business days the bank began charging $10 per day in addition to the initial $37 fee. When I got the letter my account was already -$93. They agreed to reverse the initial $37 fee but I still could not deposit enough to stop the $10/day charges from building up. I reached the maximum period of 10 business days for the daily fee. Paypal reversed the initial charge that caused the overdraft because it was made in error. I called Guaranty Bank back to see about having the daily fees reversed also because I had opted out of overdraft service for debit card transactions and now I had Paypal verifying that it was not supposed to be a preauthorized reoccurring charge. It should not have occurred at all and was wrongly coded so that instead of just being declined it caused a fee. Along with the refund of the erroneous transaction that PayPal deposited back in my account the fee reversal would have made my balance positive. They said that because the $37 was refunded they were not able to reverse the $100 in daily overdrawn account fees. A manager said that he tried, but their system would not allow him to do it. By this point I had opened an account at a new bank that I am happy with and switched my Social Security Disability to that bank for Direct Deposit, so I left the Guaranty checking account alone. A couple small direct deposits of SSI for my disabled daughter that were still going to that account would have brought the balance (about -$96) up above zero within the 43 business days that they allow before closing the account and charging another $50 fee. I left it set to go to that account for another month to pay off the fees before I closed the account. They would not let me close it with a negative balance and I did not have enough to spare that month to pay it off in full. I had maxed out the days they charged the daily fee for, shut down my check card, and was no longer using the account. There would be no new transactions so I did not expect any more fees. What I did not realize was that they just changed their overdraft policy towards the end of February so that they now charge $28 per day that an account is overdrawn (instead of a per-overdraft fee +$10/day for 10 day max after the 3rd day like they had), up to 14 business days and beginning on the first day that an account has a negative balance. They began charging me this on the first day the new policy went into effect (even though their overdraft policies in effect when the initial overdraft occurred indicated that I had reached the maximum length of time for consecutive day overdrawn account charges) so the $125 deposit will not be enough to bring the balance up. The new policy going into effect has caused another $392 in fees (14 days at $28/day) and I can not afford to put another $363 into the account to bring the balance to zero before the account is closed and the $50 closing fee is added. I just cancelled the direct deposit and let them close the account. By the end the transaction that caused a $6 overdraft that should not have been processed at all and was refunded by the merchant along with the initial overdraft fee for that transaction still resulted in $492 in fees plus another $50 for account closure for a total of $542 in fees

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Comments

  • Li
      4th of Oct, 2009
    0 Votes
    gurantybank - 33.98
    7310 s claremont
    Chicago
    Illinois
    United States
    Phone: 773-937-5219

    2898182

  • Li
      4th of Oct, 2009
    0 Votes

    false statements said to have enrolled in an undisclosed program and took $33.98 from my account.

  • Mi
      23rd of May, 2012
    0 Votes

    I had a very similar experience today. I got the letter four days after the fact and was charged $28 for all four days. I am filing an unethical banking practice and I hope you do too.

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