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Overdraft fees / The way they debit your transactions

1 NY, United States Review updated:

When you have more than one debit comming in at the same time. The bank chooses to run the highest one through first. This can cause you to have several Overdraft fees comming out of your acct if the highest one brings your account close to or over the funds available. This is to the banks benefit.
In my case they posted the highest amount first, which made my account fall into the negative, posted the other smaller transactions which brought my account to more of a negative, returned ALL the checks, starting with the highest amount (which would have brought my balance back to possitive if they had actually shown the money going back on my acct) but when they do this they do not show your account back to the possitive until all the transactions are kicked out and all their fees are taken. When they kicked the largest amount back they should have also shown the balance to a possitive and then cleared the other 2 transactions because there was enough funds at that point to clear those transactions and it would have only cost one Overdraft fee, Instead they kicked back all 3 transactions, took their fees, then showed my balance as a possitive. They have done this 2 times with the same three transactions in the past 2 weeks which has cost me a total of $180 dollars in fees to them and an additional $110 dollars to my creditors. That is almost an entire paycheck. I dont know about anyone else out there but I cannot afford to give out an entire paycheck.

My comlaint is that there were enough funds in the bank to cover 2 of the debits, but because of the way they conduct their business transactions, they build their revenue by charging more fees on funds that were available to begin with. This is theft of funds. My funds.

See this example THIS IS HOW BANKS DO IT

Debit Balance

274.72
-715.4 -440.68
-30 -470.68
-57.23 -527.91
-30 -557.91
-72.5 -630.41
-30 -660.41
+715.4 BOUNCED 84.99
+57.23 BOUNCED 142.22
+72.5 BOUNCED 199.45
+30 229.45
+30 259.45
+30 289.45
-30 259.45
-30 229.45
-30 199.45

THIS IS THE WAY IT SHOULD HAVE BEEN DONE

Debit Balance

274.72
-715.4 -440.68
-30 fee is justified -470.68
+715.4 bounced 244.72
-57.23 187.49
-72.5 114.99

The first example (the way banks do it) makes it look like I have more money but I really dont because the 57.23 and the 72.5 are still not paid.

Banks need to be monitored better. They are taking advantage of their customers.

Other issues with banks:

The so called overdraft protection ranging from 100 -500. When a bank denies you for a 1000 credit line attached to your checking acct (covers your overdraft with no overdraft fees up to 1000 and you pay back any overdrafts in installments) but then upgrades your acct for the 500 overdraft protection (30 fee for every overdraft and must be paid back within 30 days) there is something up. If your not good enough for 1000 dollars protection (if needed) you should not be good enough to receive 500 protection. Forget the banks and deal with money orders and cash. You will be better off.

Banks and Mortgage co's

Legal Loan Sharking.

It used to be illegal to loan someone 50, 000 and expect 100, 000 back or get broken legs.

Your 50, 000 mortgage is costing you 150, 000. The only difference is : You have 30 yrs to pay back and Its still illegal to break your legs.

Vi
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Comments

  • Sp
      10th of Mar, 2011
    0 Votes
    Overdraft fees - Sneaky way of making a bank profit by way of overdraft fees
    PNC BANK
    Missouri
    United States

    I faithly use the online banking system to view items pending and clearing, balance, etc., as most consumers who does their banking online. What I expect is that the information online be accurate and not suspicious. On this particular day, I viewed my account, was given a positive balance and it shown my posted and pending items for that day. I knew there was a direct deposit coming through the next business day and I knew there was a gas purchase on the way but had not shown as of yet. My son was in need of meds so I used the funds available in the account assuming all the transactions pending for that day were disclosed and already deducted (which the items disclosed where deducted) and the gas purchase would have come out the next day when the direct deposit would be there to cover. The items did come out the next day as expected but had the previous date assigned to them along with overdraft fee. When I say items there was a 0.66 item that did not show on day 1 but day 2 but stated day 1 date along with a overdraft charge. I called the banks customer service dept who at first, could not give me info as to when I logged in on the day the items did not show and why the delay in posting seeing that there were other items for that day that showed, finally they put someone on the phone who could at least confirm that I did log in that day and that the items were not showing. I had to visit the bank to try to get the reason why the items popped up the next day with the prior date and fees. The manager was polite but could not prove to me the tranactions actually came through on the day they said and was not able to credit back the fees. So I was left having to take their word for it, that those items came through sometime that day. What a way to rob consumers not paying attention. I was and as a result, I will be closing my account soon!

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