MARLTON, NEW JERSEY -- Despite presenting proper documentation (power of attorney, executorship papers, etc) Bank of America refused to disburse a CD and checking account in our names, following my father's death. It took them two weeks to tell the local office the request is declined but when I asked for documentation they said no, it's an "internal document." So now I must pay our attorney to pursue the disbursement of our funds because Bank of America does not know how to read standard legal documents and does not even feel compelled to provide me with an explanation of their actions.
So I guess they just plan on keeping thousands of dollars belonging to an account holder. They're no stranger to illegal activities and horrifyingly bad customer service, so I guess I shouldn't be surprised. Don't deal with them - nothing to gain and a lot to lose.
Bank of America steals from their customers. They create overdraft fees by not processing your purchases as they occur even though you have the money available and at the time of purchase they went through fine. If you look at your balance you will see the “Balance” and “Available Balance” and will notice the amount you just spent is now gone from the “Available Balance”. So this means they have removed the money you just spent for the purchase you just made.
Only problem is they don't actually clear your purchase even though they have removed the amount from your “Available Balance”. Instead of clearing payments they hold them, sometimes for several days, and they call them "pending transactions”. Then they wait for other HIGHER charges to come through. When this happens they will clear those higher charges and then process the lower charges and often times this creates a deficit and will overdraft your account.
If you have money in other accounts or a savings account they will freeze those accounts and not allow you to use or withdrawal any of it unless you use it to pay their fees and get the negative account into the positive. So you could find yourself with an unexpected negative balance AND be frozen out of your accounts unable to get any of your money.
Right now we are in the middle of this nightmare, which we have seen several times since opening up accounts in 2005 and 2007. We were paid on Friday, January 29, 2010. We had plenty of money in the bank and that day, the 29th I paid several bills and then that weekend we bought groceries, and made several small purchases. Our account online looked in order and the “Balance” and “Available Balance” were correct because all the purchases we made were now gone from the “Balance” and showed what was left in the “Available Balance”, which was in the positive.
When Monday, February 1, 2010 came I planned to deposit more money into the account to cover two car payments that were going to be coming out that day. When I went to check the online balance I saw that they had cleared the two car payments, which were supposed to clear Monday, and they used the money that had already been reserved (or so I thought) from the payments and purchases we made Friday, Saturday, and Sunday.
Then they proceeded to overdraft five of those purchases at $35.00 each. Later, in addition to that, they added another $35.00 fee called an “Extended Overdrawn Balance Charge” because the account had been in the negative for 5 consecutive business days.
We would LOVE to close our remaining account and leave but we are stuck there. Because of one of the many times they put my account into the negative with overdraft fees and it snowballed from being a manageable amount to an unmanageable amount, I was unable to get caught up. Then they charged me an additional $35.00 for “Excessive Overdrawn Fees” when my account was in the negative for 5 consecutive days or more.
Soon I was unable to ever get caught up and pay my rent and bills and buy food and gas. I had to stop depositing money into the account because it was just getting eaten up by their fees and I needed to pay for basic necessities and rent. They eventually closed my account and then reported me to Chex Systems.
Now because of this I am unable to open another bank account anywhere and am a prisoner there, unless I want to have NO bank account at all but then how do you cash your checks and pay bills like a normal person? You can't without a great deal of hassle and the danger of having cash in your possession, which is risky and unprotected. But really, what's the difference? It can be stolen by some random thief or it will be stolen by the bank you are supposed to trust to keep your money. Not rob you blind.
My story is just one of MANY exactly the same and this issue with the banks using computer programs to overdraft their customer's accounts has to stop. They have literally stolen hundreds and hundreds if not thousands of dollars from my family. They refuse to refund the money and they continue to practice this fraudulent scheme year after year to hundreds of people without consequence. The Internet is loaded with stories exactly like mine. I have been talking to people at stores and other places of business and have heard the same story from many of them about Bank of America and a few other banks that are doing the same thing to their customers.
These banks squandered billions of dollars away on who knows what and then needed to be bailed out by the government. They created the sub-prime lending schemes to make money and we all see how that turned out. Now the country is in turmoil and the economy is in the gutter and people are suffering because of it. Now they add insult to injury and steal from their customers by creating this overdraft charge theft scheme to make money. WHY IS THIS LEGAL?
BOCA RATON -- I have been a Bank of America customer now for over 3 years. So far I am very dissatisfied with your service. Most of your tactics are deceiving and seem to trap consumers. Here is my #1 problem with this bank. I got a student credit card with you and used it irresponsibly and quickly went over the limit. At first I was paying on time then after a few months I stopped paying.
About six months later bank of America put me on a 5 year payment plan to pay off the balance of my debt of $46 dollars a month to be paid on the 21st of each month. I went about 3 months with no problems then all of a sudden you stopped automatically withdrawing the payment out of my account. I called up and you advised me that I needed to reschedule my payment plan and that's why you didn't debit the $46 out of my account that month.
I got a letter in the mail about 2 weeks prior saying that I need to reschedule the payments. I called the number and they said to never mind the letter that it wasn't necessary (which apparently wasn't true). So two weeks later when the payment wasn't made I got hit with late charges and fees. This did not seem fair I did everything I should have and I had to pay for a bank employee's mistake.
So after I once again rescheduled the payments 3 months later the same thing happened (this time with no warning letter) I got hit with late charges and needed to reschedule. Fed up and untrustworthy of this company I decided to call up and request a full statement outlining what my charges are and how they came up with my balance. They said they would send that in about May I would say. I still haven't received this or any other communication with bank of America.
Now on September 30th 2008 my checking account gets mysteriously debited $46 after not speaking with them for almost 5 months. I called and got the run around and gave up. Now on October 21st 2008 I get another charge for $46 so I called again today. I spoke to bank of America about the situation and they transferred me to a representative of FIA card services. She advised me that the reason these two debits came out of my account were because I called in and authorized them to do this on Sept. 30th 2008.
I am 100% positive this never happened. I ask them to let me listen to a copy of the recording of me authorizing this and she said she will transfer me to the manager who can help me out with this. I was transferred and I got a voicemail, so I left a message explaining my situation. It is now two days later I have not received any response back from this manager or anyone. These practices are very wrong in my opinion and hopefully illegal.
On a side note I asked them not to make any more debits from my account to pay this bill. They agreed and I asked them to send me written documentation verifying this and I was old this was impossible (she said they can't send a letter verifying something that is not taking place) this makes no sense to me why can't they send a letter saying 'no more electronic transactions will be debited from my account' So after I was told this I was asked for permission to record her saying that this will not occur, once again I was turned down. She also couldn't give me a straight answer of why the $46 was taken out of my account on different dates for the September and October payments.
My question is: What are you going to do about this? I incurred a $35.00 overdraft free from this unauthorized transaction. Bank of America should not be allowed to steal money from their customers accounts and then give them the run around when the start asking questions.
I'm so fed up at this point that I am going to send this problem to every organization that will listen. I have extensive experience in internet marketing and how to spread something across the internet. I'm not sure if you are aware but there are literally thousands of consumers' complaints about your company all over the web. In addition many of these people are starting to inquiry about class action lawsuits against you as most of their situations are all eerily similar.
After reading all of this I have no doubt in my mind that this is no coincidence and Bank Of America is intentionally trying to scam their customers out of money through any means possible (questionable practices, downright fraud, and resorting to low measures to make a quick buck). Fortunately I work at a law firm that specializes in credit and consumer laws. I have no problem proceeding with legal remedies this has gone on too long and it's time to take some action.
ARIZONA -- This is my attempt at getting an overdraft fee reversed through the Chat Line. This is after already talking to a Supervisor "JN".
Welcome to Bank of America's chat service. Your chat may be monitored and recorded for quality purposes. A Claims chat specialist will be with you momentarily.
You are now chatting with 'Alice', a Bank of America Claims chat specialist
Alice: Hello. Thank you for being a valued customer with Bank of America and choosing our Online Claims text chat service. My name is Alice, and I will be happy to assist you today. May I please have your first and last name and may I use your first name during our conversation today?
You: Jim alverson
Alice: May I use your first name during our conversation today?
Alice: Thank you Alverson. I'm sorry you had to take the time to contact us today. I certainly will do all I can to help you. Will you please provide me with the date and dollar amount of the charge(s) you wish to dispute?
Last text message received Alice: Sorry Jim.
You: I ordered checks online which resulted in an overdraft fee of $35 because the charge went in the day before my deposit. I'm broke with no food in the house, and I asked "JN" a Supervisor to please reverse the charge. The said I already had 2 reversed in there past year and there was nothing she could do. This account has been opened since 1986. How many charges in that total time. I 65 partially disabled and live on $1321 per month plus aboutt $70 week from a minimum wage job. I now have $22 in the bank and I need to pick up $24 in rx from a pharmacy for my wife. Please in the name of human decency reverse these charges. I'm, hungry, sick and this money has to last me 'til April1. Please in the name of the Lord help me.
Alice: So sorry for the inconvenience on your account and we definitely do value your business since 1986. Bear with me one moment to review your account.
Alice: Thank you so much for your patience. The fee is actually still processing so I am not able to request a refund at this time.
Alice: Unfortunately we will need you to contact us either through this chat or by calling 1.800.432.1000 once it posts to request the refund.
You: I saw it online it has posted, that's how I knew about it>
Alice: It is actually showing as processing so it is holding the funds but has not actually posted to the account showing a posting date.
Last text message received Alice: We would need to wait for it to post before we can request the refund.
You: How long will that take?
Alice: I apologize for the inconvenience. Transactions are processed during the overnight processing. I recommend to check first thing tomorrow to see if that has cleared.
You: I'm sorry too Alice will be posting on a BOA blog before days out. Sleep well, eat well and pray you never get old and sick like me.
I know this review may sound like I am playing that same old scratched record from the 70's but I believe this situation needs to be heard. I had some funds in my account and made some purchases. I had scheduled a payment to come out of my checking account for my mortgage on the 29th of January. I tried to make a charge to my checking account that week. Since it was rejected I wondered what was going on since I knew I had funds in there to cover all charges and would have funds in there on the 29th to cover the mortgage payment.
Come to be that BoA took out the mortgage payment on the 25th of January. This caused my account to bounce all the little charges since they paid the big charge first. I incurred $450 of overages due to the practice of the so called "customer recommended practice of paying the big charges first." I entered into negotiations with their payment reversal office and have been waiting for this reversal for the last 96 hours. I might add that to just talk to these people I was hung up on twice, and the last time I still never talked to this phantom payment reversal office.
So it is now the 30th of January and my Veterans Administration disability check was deposited. Yet I have no money in the account because they took it all to cover the erroneous post of the Mortgage and the overdraft fees. I called them this morning and spent the better part of an hour talking (if you can call it that) to the supposed supervisor on duty. He then informed me that if I had been more watchful over my account this would not have happened. What?
It was their mistake in the first place. I then asked him to comp some overdraft fees since they took the liberty of reordering my transactions to pay the larger charge first. I then asked what policy were they following that allowed them to do this. He said it was policy that was approved by the members of B of A in a survey. I then asked what survey because I never received one. He then said it was a survey that was administered before I became a member.
I then asked him who in their right mind would agree to this type of practice. This does not benefit the customer but rather the bank to reorder charges and pay overdraft fees. I indicated that was absurd and that if he thought that I was going to believe that then he was even more mentally challenged than I thought.
In short I told him that I was a USMC veteran and that they just stole my money from my disability payment. He said the bank didn't care if I was a veteran or not and that they would not make an exception, veteran or not. In closing, they may call themselves Bank of America but if they have no qualms about stealing the disability check from a veteran. Then they certainly will no longer be the bank for this American.
LOS ANGELES, CALIFORNIA -- My letter to BofA: I'm sure my story is not uncommon, and surely less disastrous than what some of your customers are experiencing. Recently I underwent a salary cut of about 30%. At the same time I was dealing with a foreclosure on a property I still owned in my hometown of Chicago.
Back in Oct., ‘08, with my foreclosure there were city building violations having to do with required repairs that I could not financially have completed. Thus I lost the property and incurred numerous fines by the city, for which by a court order, emptied my BofA checking account which had barely enough funds to pay for rent, child support, and other necessary bills. There was a domino effect of overdrafts. BofA was kind enough at that time to reverse some of these.
Then recently earlier this month, there was a charge by a rental car co. which appeared and then disappeared, then reappeared. At the time I had sufficient funds to cover the charge yet the final charge posted was actually higher. If the post date of this charge had been dated the latter actual date of confirmation, I would have not overdrafted eight (8) times (x $35 for each totaling $280). I was charged $35 for $3 - $5 transactions, which caused again a domino effect of overdraft charges on my badly needed funds to make ends meet. (This week the shortage may also cause overdrafts due to automatic withdrawals.)
I had asked the branch manager if they could have some consideration and reverse at least 3 of the overdraft charges. Basically they advised they cannot and are not allowed too. The same with your 1-800 customer service. All of this, not too mention BofA's nickel and dime charges I see on every statement, is a ruthless policy by BofA to try to make up for losses being felt elsewhere in the banking business, correct? Would not it be fair if there was an overdraft charge for every $50 or $100 that a customer overdrafted? Instead of charging $35 for every $1, $2 or $3 overdraft? Make justifiable sense?
Regardless, this letter is to notify you that this very unhappy customer will be closing his accounts with BofA ASAP, and will certainly not recommend BofA, and recommend that people stay away from BofA so as to not get ripped off and taken advantage of. And believe me, I am very involved in the Hispanic community in Los Angeles as well as in the top U.S. cities where we do business and support Hispanic community organizations. Basically, I've had it with BofA!
I also understand that in the next year, B of A will be charging a $39 fee per overdraft with up to ten (10) overdrafts per period. That can devastate a hard working family that needs to put food on the table and pay rent or mortgage. But I guess you need to make money on the short term. We'll see what happens in the long term.
I wrote the following to Bank of America today. I didn't feel the need to be more specific; they have heard all of the complaints before. Just Google "Bank of America" and "Unethical" and see all the results it produces. They have developed a devious system of policies, practices, fees and holds that assure that they will take as much as they possibly can from their customers. It is confusing enough to assure that even the cleverest customer won't be able to make sense of it all and inconsistent enough to keep us all guessing. Just a few examples of ways that they stick it to their customers:
Make a deposit and funds will be held anywhere from 0 to 12 business days before they become available. I have talked to several representatives now in an attempt to gain an understanding of what determines how long the hold will be and not a single one has been able to lay out the criteria for me. The gentleman with whom I spoke today told me there isn't a rule at all. "It just depends," he said.
Make a deposit in an ATM and you receive immediate credit for the first $100 of your deposit. The rest becomes available later. Make a deposit at the counter and all of your funds are held; none of it becomes available until later. If you're me. If you're my boyfriend, apparently, the results are different, but please don't ask anyone to explain why that is or what criteria are used to determine who gets credit for what when, I have tried, and no one knows. "It just depends," they say.
Say your available checking account balance is $300 and you have $100 in funds pending until, you know, whenever they feel like making it available (It depends). On Monday, you slide your debit card seven times. Each purchase is for $5, so your purchases total $35. These appear on your account as "Pending," the funds don't immediately debit. On Tuesday, you slide your debit card again, for $300.
This too appears as pending but now, Bank of America "As a courtesy," changes the order of the transactions to assure that the largest of your purchases clears first. Your $300 purchase clears the account and for each of the remaining seven you are charged a $35 overdraft fee. You are charged a total of $245 in overdraft fees rather than just $35, even though only one of your purchases was made when you had insufficient funds.
Never mind that additional $100 that was in the account; those funds were pending, so they weren't really yours. And they're all gone now anyway, and your account is still negative by $170 when the funds do become available, thanks to the fees they charged. I find all of this beyond disgusting.
Add me to the ranks of customers who have been dissatisfied with Bank of America's practices. Add me to the ranks of customers whose financial struggles during this economically challenging period in history have been compounded by the fees, holds and inconsistencies that are the Hallmark of Bank of America's policies. Add me to the ranks of customers who have no illusions; we know that Bank of America, in response to the impact that the country's economic downturn has had on financial institutions, is attempting to regain some ground by passing the expense to its customers.
Bank of America, ever attempting to grow black mountains from red valleys on the graphed landscapes of profit and loss, worsening our country's state of depression by depleting the limited resources of the people who make up its population in every way conceivable. Bank of America, a rapacious pecuniary beast, alarmingly short-sighted in its predatory approach, seeing red and opportunistically devouring any unsuspecting capital in its path; no regard for the impact of its actions on the economy as a whole, no regard for the individuals it abuses, no regard for the implications of its actions.
Bank of America, hoisting the common man by his ankles to shake, and shake, and shake until his pockets are turned inside-out and every last cent has clattered to rest atop a heap that is never tall enough to quell such a gluttonous appetite. How apropos, then, to be dubbed Bank of America, as it is indeed just that; a bank, a heap, composed of the laboriously obtained earnings of common Americans.
Then, wild eyes aflame, the creature climbs atop its ill-gotten mountain of dollars and dimes and roars a mighty roar, the subtext of which rings clearly in the ears of its customers: “Every man for himself; let the weak perish.” (Although some of us hear only two short words, the first of which is most certainly not “Luck”). Add me to the ranks of Bank of America customers who can only slide our hands into our empty pockets, shake our heads and say “For shame.”
NEW YORK, NEW YORK -- Short and sweet. I've switched banks twice in three years due to overdraft charges. Citibank, Chase and now Bank of America have bilked me out of thousands of dollars because of their creative accounting and their ability to post debit charges whenever they feel like it. All banks are taking advantage of the "21" legislation that eliminates the "float" time for clearing checks, and applies it also to debit card transactions. I am in chexsystems because I refused to pay $300 in overdraft charges at Chase.
They were charging me overdraft charges on overdraft charges! I try to avoid overdrafts by using my card when I have money in my account. The bank puts the debit in pending status and even though the money was there, somehow the system is set up to incur a charge. $175 last week, $105 this week. I am going to gather all of my statements and submit them to my local congresswoman to show her this disgusting practice. They are taking this money out of UNEMPLOYMENT INSURANCE checks. How dare them!!!
They know that Wednesday the check is direct deposited and sure enough they manage to take any and all of the weekend debits and post them from highest to lowest always incurring the maximum overdraft charges. Two three and four charges of $35 hit my account. This is disgusting. When I call them to complain they blame me for not knowing how to balance my checkbook. I've had checking accounts my entire adult life and NEVER have I incurred so many charges. It seems that since many people have wised up and stopped using high interest credit cards, they are now hitting us with fees on our debit cards which we use as an alternative to incurring debt.
The penalties though are far worse. It does help, however, that when you use your card as a debit, not a charge, that the amount is then directly debited not placed in a long "pending status" that allows them to post the charge whenever they wish. This whole economic mess is because of banking greed. They have hurt thousands of people because of their ridiculous interest rates, mortgage practices. They then have the nerve to call hard-working people who live on practically nothing deadbeats!!!
The government is bailing them out, Bank of America and Citibank are both candidates the government should know what they are doing to their customers. Their working class customers who live paycheck to paycheck. The rich are not affected because they always have a "cushion" of money in their accounts. But I have a lousy $405 deposited once per week and the bank takes almost half of that as penalty charges.
I am going to make sure that my local government does something about this. Many people are upset. In the meanwhile, I will stop using my card unless absolutely necessary. It's cash for me all the way. Bet you then they'll start to devise a way to charge fees for excessive ATM withdrawals. (They already charge too much). Now I know why I've found it so hard to make ends meet the past few years. I am losing a large chunk of my income to pay banks!!!
PORTLAND, OREGON -- Bank of America will push you down, kick you while you are there and then steal your wallet and your baby's candy. Their policies on fees are so screwed up their own customer service reps don't even get it right, heck, the bank manager I spoke with couldn't even give me a straight answer. I had overdrawn my account $12 on accident, noticed it right away, called, the representative said because it was "pending" and just done if I were to put money in there to cover it I would not incur a fee, so I had him xfer money from my savings to my checking and he assured me I would be fine.
A few days later I come to find my account overdrawn again, by $20, but I know that shouldn't be, turns out I did get a $35 after all. I called again, a lady waived the fee (it was noted that I had been told I wouldn't get one) and said that 4 transactions had put me over by $20 and that I was going to get 4 more fees, but she couldn't do anything b/c they hadn't billed to my account yet. I wait, and call back once they did.
(I would not have ever overdrawn my account had I not gotten that fee I was told I wouldn't get, and had I known I was going to get, if I was told the right info in the beginning, I wouldn't have used my debit card at all). I spoke with someone else, they said that they would waive 2 fees, that wasn't good enough for me but I didn't have time to argue, they said I should just call back and speak w a manager. So I did.
The manager basically said ha ha, too bad, we're not doing anything for you. I asked him to listen to the call when I was told I would get these fees waived, he said he couldn't do that. My husband was severely injured and hasn't been able to work for over a year. He's undergone 2 major surgeries, and is on workman's comp, they pay 60% of his income. I am a full time student, a mother of a 2 year old and am pregnant. I can't quit school to work more or I'll have to start paying on my loans.
Bank of America has screwed us over so many times it's not funny. They have charged us over $4500 in the last year in fees by manipulated debit card usage, lying to us over and over, and holding deposits. I don't understand how they are allowed to “pend” a charge made on a Friday until Tuesday, and then put a charge made on Monday before the Friday charge so that you end up overdrafting your account twice, even though on Friday there was enough to cover that charge. It doesn't make sense and it's not fair.
If there is money in the account when the debit card is swiped, its not overdrafting the account, and shouldn't get a fee, transactions should be posted in order of when they were done, not in order that will get the bank the most fees. I don't see how they can get away with this. The news always talks about the economy, and credit cards, and interest being charged, but I've never heard about banks sucking the life (almost literally) out of people with their deceiving business practices. If their own employees can't figure their practices out how can we as a customer? I hate and loath Bank of America. Bank of opportunity my **. More like bank with an opportunity to rob the poor.
RENO, NEVADA -- Even though this may get a bit technical and boring it explains one way banks use the system denying access to your money while they profit from it. In order to illustrate the problem I will use a real life case that just happened to me. I will quote chapter and verse the banking regulations they both use and abuse to accomplish this. I will give you an example of how this works. Be patient my explanation is as confusing as Fed Reserve Regulation CC itself.
My example as some of you know I recently retired. Part of my financial plan was to pay all of my outstanding debts and retire debt free. To that end I took a large cash distribution from my retirement savings with the intent of depositing it in one of my checking accounts and paying all my debts. We will follow that check to my bank to explain how they do it.
To begin the story I have essentially two checking accounts which I use: one at Bank of (A) which is little used and in fact sometimes months with no activity. The second account at Bank of (B) I use for everyday activities and is always in use. In this case I decided that I would deposit the check at Bank of (A) and pay all my accounts of from there. This decision was based on the fact two of the accounts I was paying off were at the same bank so it would be convenient to do so.
On Dec 1 first I deposited the funds at the branch office via a teller transaction. When I did this I was informed that I would only have immediate access to the first $100 of the funds with access to the next $4900 by 5 PM on 12/08/2008 and the remaining tens of thousand after 5PM on 12/10/2008. I was told that this was "required" by bank regulations.
I at the time questioned it and essentially was told by the branch manager that was the way it was take it or leave it, so I had no choice but to go along with it. When I got home I called the big 800 number in the sky for Bank of (A) and spoke to a person there who essentially said it was the branches right to hold the funds and it really didn't matter what I wanted and in a rather rude voice told me I should read Federal Reserve Regulation CC.
Now this is where I got upset or more precisely went to the full livid state of anger, for you see I have read regulation CC as well as something called Check 21 rules which are related and now this is how the game is played. Understand firstly that in Reg CC part 229 which covers this type of thing all references to holding funds use the terms "MAY" or "Not Later Than" so all holds by language are at the discretion of the Bank and not "Required" and the term "Reasonable" is also used in defining duration.
Because my deposit was a large one it was reasonable to place a hold on the funds that is not what is disputed. The duration and lack of professionalism on the part of the bank when dealing with it and me is the contention and my reason for pointing out this moneymaker for the bank. I will describe step by step what I think is wrong and invite any knowledgeable banker to point out my errors. I wager there will be no response.
First Reg CC does say that at least the first $100 must be available and the next $4900 "No later than" 5PM on the 5th business day and the remainder no later than the 7th business day. The bank can hold the funds for one additional day if the account has been overdrawn by the customer regularly (Note: this does not mean overdrawn by the banks imposition of fees in fact there is an exception for the bank to collect the overdrafts before the hold is released).
In any event the bank must notify the customer in writing at the time of deposit of the hold extension and the reason. Even further pre-printed deposit slips are supposed to have a notice that not all funds may be immediately available. Funds over first $5000 can be held for up to 7 days from deposit.
Now for how the banks get rich on your money I will use my case to describe what happens. The check I deposited was drawn on an Illinois bank so it clears via a different Fed Reserve Region and so it is a "Non-Local" item under the rules the bank teller deposited the check on 12/1 business. That night the check would have been transmitted electronically to clear the other bank.
(Checks for the most part no longer transit the country for clearing today imagery is used) by virtue of that I believe this is now an electronic transaction which under the rules should mean my funds were cleared probably on the 3rd or 4th of December. If in fact it was electronic the funds are required to be available on the next business day (5th). The bank however treats the transaction as an old fashioned paper transaction solely because it started with a paper demand.
Because of that banks place the hold at the maximum when deposited. That gives the bank up to 7 days of use of the funds which belong to the depositor. In my case the 6 figure number probably generated a couple of hundred dollars as well as by delaying the ability of me to pay the 2 other accounts off another couple of hundred if I had not spoken with those account managers and got them to wave the interest. This free use of the funds made the bank money denying me use of the funds. Now if I multiply Bank of (A)'s number of held deposits which on any given week would probably be in the thousands they make a lot of money at our expense.
Some other shortfalls in Reg CC. The regulation uses the language "MAY" when referring to placing holds as well as "No More Than" / "Not Later Than" and "Reasonable" when describing duration of the holds. That means that these items are at the sole discretion of the bank as to what the minimum time is. Banks by using the maximum get your money for the max time to use as they see fit prior to releasing it.
Appendix A defines which banks clears in which regions the consumer normally does not have access to this info so the decision on which bank to deposit in to get the most rapid service does not exist. Because the regulation has wide latitude banks take advantage by holding funds beyond what is necessary. In addition Managers differ in views and some are not as flexible with customers as they should be.
In fact consistency does not even make it through the example transaction. The teller told me the first $5000 would be available 12/08 but the customer service representative online email states 12/6 but they were not so I have no idea when the funds will actually be available. A perfectly good regulation with the designed intent to protect both the bank and consumer has turned into an instrument to take the consumers fund availability and give it to the bank for a period. Not fair in my opinion.