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Bank of America Overdraft Fees

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Bad Customer Service On O/D
Posted by Bonbonz on 02/06/2006
PASO ROBLES, CALIFORNIA -- I will be closing my account w/ BOA ASAP! I closed a checking account back in July and reopened one the same day due to multiple problems with the account. I sat with the person IN PERSON and closed an account got a new checkbook and put some money in a savings account and thought ok, start over should be fine. WELLLLLLL. Apparently a charge for $18.00 went through on the CLOSED ACCOUNT, and was paid, WITHOUT MY KNOWLEDGE. 5 months later, 9 overdrafts were charged because bill pay was attempted, charging my CLOSED account $107.00 in fees.

Now mind you, I had not clue that this was going on. I do my banking online and check the balances daily. When I opened my online banking I noted 3 accounts, 1 savings, and 2 checking, 1 w/ a zero balance. Thought nothing of it, just that it was listing all accounts I have had. One day I decided to open it and see if it said closed or anything and saw the $18.00 charge? I called and they advised me of it. I said I would move the $18.00 from one checking to the other to cover it, they said once it was done the account would be officially closed. I paid it. 1 week later, my current checking account was charged $107.00, I called them and fought and fought with the rudest people in the land.

I asked how can they justify taking that money out when they could have taken it out 6 months ago ONLY $18.00????? They gave me the story of 120 days I had to pay it and then they reopen the account. I said it is way over 120 days, how come they had no problem taking $107.00, but when it was $18.00 they never touched it??? There was no satisfactory explanation! I was so angry and demanded they reverse the charges, they said NO WAY, that it was basically my problem.

So, I am closing the account and will tell anyone and everyone, DO NOT OPEN AN ACCOUNT WITH BofA!!!!! YOU WILL SERIOUSLY REGRET IT WITH YOUR LIFE!!!!!!!
     
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Posted by tarter1974 on 2006-06-27:
thank you for your comment, i will remember this when i close my account with BOA, after i dispute the 6 $35 overdraft fees i have from an unauthorized charge.
Posted by Alaskan on 2007-10-02:
We are having the same nightmare with Bank of America but with a VISA account instead. We closed an account and added my husband to my account. They did that OK but did not bother to take the last payment from a checking account for the closed account. We did not notice this until a month or so later. We mailed in the final payment as soon as we realized they did not bother to take the final payment. Now they insist we did not close the account until 3 1/2 months later. Then they attempted to get a payment from our closed checking account after several "service reps" insisted we were not set up for autopay! (which we were). Then they charged another $39 for returned check fee and late fee of $29 . Now they say we owe them $269 all late fees, etc. I would cancel our joint account but they give us our Alaska Airlines miles. We will not pay them and want others to know just because you cancel an account on the phone and cut up your credit card, do not assume the slimes have closed your account.
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Negatively Changes Their Policy On "Pending Transactions"
Posted by Westchaser on 05/20/2008
Bank of America's policy of Overdraft Fees is nothing short of debilitating.

As of this post (May 2008), BofA has recently changed their policy on PENDING TRANSACTIONS which - in particular - has resulted in numerous overdraft fees on my account.

It took 3 calls to their "customer service" department, before someone admitted to me that their policy has indeed recently changed.

In the past, using my bank card (non-debit) on a Friday would NOT see those transactions post to my account until Monday. That meant I had until Sunday's "cut-off time" to fund the account to cover Friday's charges.

As of this writing, BofA has CHANGED that policy so that (quote) "Pending charges may in fact pull the funds from the account that same day".

To clarify, BofA is saying that I no longer can wait until Sunday - I must fund Friday's charges before Friday's cut-off time.

While this is a simple change of protocol for me, why was their policy change not made well known? HINT: Instead of the onslaught of advertisements upon logging into the BofA website (www.bankofamerica.com), such that often require my clicking a "Not Interested" button, why not post a message that says "Dear Valued Customers, please avoid overdraft fees by keeping your account funded Monday through Friday, as we have recently changed our policies in that we now post Friday's activity ON Friday."

Why didn't BofA make this well known? In my opinion, they make BILLIONS off of Overdraft Fees. It's a planned event, not unlike insurance companies who calculate who and how many people will die this year. This is one of their money-making scams ... um, I mean schemes.

Yes, I know that I can assign an overdraft account to protect myself, but that would not be necessary if they made their customer well-aware of policy
changes ... instead of tell me (as their Customer Service department did) that "Didn't you see the notice? It was included with a recent statement."

So, instead of further insulting us with your videos ( http://www.youtube.com/watch?v=CT77_8kEJvk&feature=related), why not spend the time and energy to
keep your "valued customers" well informed?

[sigh]
     
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Posted by yoke on 2008-05-20:
Let me see if I have this correct. You are upset because BofA is asking for you to have the funds in your account BEFORE you use them?
Posted by Anonymous on 2008-05-20:
I usually do my best to spit on Bank of America but I'm with Yoke this one. Purposefully obligating more money than you have in your account is just crazy. You should be charged a "courtesy fee" or a "learning fee" or something so you'll quit doing things like that.

Do you wanna know why your are 100% wrong? Because out of all hundreds of BoFA complaints this the first time I've sided with BoFA and for that sir or madam you owe ME an apology.
Posted by Hugh_Jorgen on 2008-05-20:
What is this obsession people have with playing the float in their bank accounts? Face it people, those days are gone. Yoke is right, you shouldn't spend money you don't have and if you do, expect to pay a pretty penny for it.
Posted by tnchuck100 on 2008-05-20:
STOP DEFENDING BofA unethical practices!!

They should not apply an overdraft fee on pending transactions! Only when they transfer funds to the merchant should the fee be applied.

In some cases a pending transaction may never be completed. But BofA will apply an overdraft fee anyway. In some case a pending transaction could be followed by another transaction from the same merchant for the same purchase only to have the first one drop off. But BofA still nails the customer!

No wonder the banks are getting away with this. Too many people just roll over and say "go ahead - screw me over - I like it!". So, to all BofA defenders - enjoy your sadistic relationship with them. Sooner or later they will find a way to mis-treat you as well.
Posted by Anonymous on 2008-05-20:
Chuck -- I agree with everything you just posted BUT that still doesn't excuse people *purposefully* obligating more money than they have in their account at the time of the transaction which exactly what the OP admitted to doing.
Posted by tnchuck100 on 2008-05-20:
I am not excusing the REAL overdrafts. Only this PENDING garbage.
Posted by yoke on 2008-05-20:
chuck, reread the post. The op has admitted to not having the funds in the account. He makes a purchase on a Friday and wants to put the funds in on a Sunday. This has nothing to do with a transaction pending, it has to do with a transaction being done knowing the funds are not going to be there until Sunday.

Posted by cherpep on 2008-05-20:
tnchuck100 - you're right too many people do say "go ahead - screw me over - I like it".. they keep banking at BOA, shopping at Target, etc. Why? If people don't have more respect for themselves and expect better from their places of business - fairness to the customer and customer service will cease to exist.
Posted by Mrs. V on 2008-05-20:
My advice is to try a Credit Union. They seem to be the best 'banks' around with there policies.

It wont help if you are living beyond your means, but there policies are fare.
Posted by yoke on 2008-05-20:
How is it BofA's fault that people can't balance their checkbook, just like how is it Target's fault people can't keep a receipt. When do people start taking responsiblities for themselves? Why is it always someone elses fault?
Posted by woodsk1 on 2008-05-20:
COme out of dreamland. Float is done. Dont spend what you dont have....
Posted by bill on 2008-05-20:
Never write a check until you have cleared funds in your account to cover it. If you follow this simple rule you will nevr have an overdraft problem.
Posted by Ponie on 2008-05-20:
Yesterday I was drowning in a sea of Target complaints--today it's Bank of America. But cherpep managed to squeeze one in after all. And they're all about the same thing: I did something against the stated policy and I expected to get away with it. No way.
Posted by cherpep on 2008-05-20:
Or.. it's the sound of people waking up from their brainwashing and realizing that they are letting these corporations walk over them and have finally decided that they aren't gonna take it any more. It's the consumer revolution!
Posted by Ponie on 2008-05-20:
Yep. They can go to WAMU--haven't had a complaint about them lately, have we? I agree, these lousy corporations! The next time I want a job, I'm going to go to an impoverished person.
Posted by tnchuck100 on 2008-05-20:
Not one of the defender's here has grasped what the real issue is. It's not the overdraft...it's the method used to impose it. It's not whether or not you agreed to it...you did. But that does not make it right. BofA IS screwing people...royally. One day they will get to the defender's as well.
Posted by madconsumer on 2008-05-20:
the days of floating money are long gone.

i really dought it is a new rule that says you must have money in the account before you can spend it.

after all, you are stealing from bank of america. they lost much interest over your weekend money barrowing. so they have all rights to collect what is rightfully theirs!


i have been with bank of america for many many years, never had any fees. NEVER. do not float money, and do not over spend!!
Posted by tnchuck100 on 2008-05-20:
The days of floating money are NOT gone. It is just the WE can no longer do it. The banks are doing it now with our deposits. But when they do it it's legal.
Posted by yoke on 2008-05-20:
This op admitted he was planning on using BofA's money until Sunday. It's not like the deposit was there and BofA was holding it, the op was not planning on making a deposit until Sunday, but does not want BofA to charge him any overdraft fee's for using the funds on Friday. That is not how it works.
Posted by Anonymous on 2008-05-20:
Nobody was using BofA's money because at this point in the story no money had changed hands which is chucks point.
Posted by tnchuck100 on 2008-05-20:
You got it, Lois. It's WHEN the funds actually move that makes all the difference! BofA is penalizing customers even though they are out nothing.
Posted by yoke on 2008-05-20:
Whose money was the op using then? Not his own. If the op had the money to make a deposit on a Sunday, but not on a Friday then why not use the cash he was going to deposit instead of the debit card?The op claims he had the money on Friday but missed the cut off for deposit. Sounds like the op was used to playing the floating game and this time he got sunk! Could you go into a store and take any item and use it all weekend, but as you are leaving say to security I will be back on Monday to pay for it. They always let me do it.
Posted by Anonymous on 2008-05-20:
Yoke -- The OP was not using anybody's money or in a strictly technical accounting sense OP was using the vendors. An authorization isn't a transfer of funds. The funds are withdrawn from BofA's control Only when the second leg of the transaction is posted. I agree about the floating junk but to say the OP was using BofA's money for the weekend interest free is erroneous. It would be more accurate to say the OP was using the vendors services/merchandise interest free for the weekend.
Posted by yoke on 2008-05-20:
lois, I understand what you are saying, but the op was upset that BofA put his transaction into a pending state. He wants the bank to wait until he gets around to putting the funds into the account before they do that.
Posted by tnchuck100 on 2008-05-20:
"...op was upset that BofA put his transaction into a pending state." - yoke, where did you get this idea? The OP was upset because he was charged a fee on the PENDING transaction, not the fact that it was pending. He wants the bank to wait until they have actually extended money on his behalf before penalizing him.
Posted by yoke on 2008-05-20:
chuck, I am old fashioned, I don't use my debit card for a debit unless I know the funds are there. This op knew the funds were not going to be there until Sunday and used it anyway. Would the op be upset if BofA denied the charges instead, technically BofA could. BofA did him a courtesy and paid the transaction.
Posted by tnchuck100 on 2008-05-20:
If BofA would have declined the transaction that would be justifiable. What is not fair is the overdraft fee when BofA was not out any money.
Posted by Anonymous on 2008-05-20:
I think the problem is, Chuck, that by the time a transaction makes it into pending state, the bank is legally obliged to pay the debit, whetehr or not the funds are in the account when it is presented. Given this, it does not seem unreasonable to charge the overdraft when the card is swiped, rather than waiting. I think it's nice when banks don't, but not unfair when they do.
Posted by cherpep on 2008-05-20:
The main complaint by the op is that BofA changed their process without informing the customer. If the bank was fair, they would do a one-time removal of the charges.
Posted by Anonymous on 2008-05-20:
An authorization isn't a charge. Chuck is absolutely right on this one. When you pay at the pump some gas stations place a $75 pending charge no matter what the total is... so if somebody pumps $50 bucks worth of gas but since the $75 authorization exceeds their $60 balance they should be hit with an OD fee?



This all goes to show you that debit cards are evil spawns of the banking industry and until the fed (gov or reserve) lays down some descent rules we're all better off without them (although I'm hooked).
Posted by tnchuck100 on 2008-05-20:
I have never argued the 'legal' aspects. The point is, and always has been, the bank is penalizing the customer before the need to do so has actually taken place, before they have paid anything.

In this case you can bet the bank did not pay the merchant until reconciliations were processed on Sunday or maybe even Monday night.

I don't care how many ways you cut this, the banks ARE screwing their customers at every opportunity. New methods seem to crop up monthly.
Posted by yoke on 2008-05-21:
Does BofA have a crystal ball that tells them that people making transactions on Friday with no money in their account will put the money in on Sunday?
Posted by tnchuck100 on 2008-05-21:
Oh certainly, it's the same crystal ball that tells them which "authorized" transactions will actually have a request for payment.

yoke, you have been missing the point through this entire thread. No money will move anywhere until at least Monday. Not to the merchant and not from BofA. Please, try to comprehend this.
Posted by yoke on 2008-05-21:
chuck, I am comprehending the entire thread. I get that the merchant did not get any money (or that is what the OP is claiming) until maybe Monday, but the op was stil floating funds and this time he got caught and is blaming BofA for it. Next time put the funds in before you use them.
Posted by tnchuck100 on 2008-05-21:
Assume for the sake of argument that the OP initiated a transaction Friday night. That transaction is pending. Assume that the OP made a cash deposit in the bank ATM on Sunday afternoon. That deposit is pending.

On Monday BofA processes the ATM deposit. They have the cash. The merchant places his request for his funds. That night BofA reconciles all of Monday's transactions. At no time did BofA have to use their money to cover the OP's debts.

But they penalized him as if they had. Remember, I am not saying BofA did anything illegal, only they did not have an ethical reason for it. Only pure greed and because they could.
Posted by cherpep on 2008-05-21:
tnchuck, I completely understand what you are saying and agree with you. Call it a crystal ball or fair banking, according to the op, BofA would reconcile the weekend transactions and not post a fee. However, they figured out a way to get more $$ out of the consumer and made their changes, without any notification. The bank can use creative accounting as much as they want, but once they see how the consumer might be using their own creative accounting (without any cost to the bank), they figure out a way to make them pay for it - simply because they can.
Posted by joyn49 on 2008-05-22:
My daughter who has had an account with no overdrafts just had 300.00 for overdraft fees. She had some credit transactions on her debit card and the treated deducted them as a posted transaction the day she used her card and then pulled them as a posted on the day they got the paperwork and charged BOTH times as an overdraw when something else came in. I had transferred some money between our accounts to try to straighten this out because I didn't know that the new policy is money deducted from available balance when you swipe the card and they took that 110.00 and said if I made an electronic transfer that didn't waive the fee! They now consider pending as automatic hold on funds but if it's an interbank transfer it's still pending? What's UP!!!! Have banked here approx. 10 yrs with none of this kind of Bu##SH#t. Am changing banks TOMORROW!!!! So is my daughter!!!!! Made me wait OVER 24h for a cash deposit in the ATM to be credited. CASH. Sign on the banks says cash is automatically credited. The machine counts it an takes a picture of it for crips sake. FRAUD LEGAL ROBBERY
Posted by joyn49 on 2008-05-22:
If you put a check in the bank they put a hold on it until they get their money, maybe they should have a fee levied on them for holding the money and not releasing it until it's "posted"
Posted by joyn49 on 2008-05-22:
My daughter who has had an account with no overdrafts just had 300.00 for overdraft fees. She had some credit transactions on her debit card and the treated deducted them as a posted transaction the day she used her card and then pulled them as a posted on the day they got the paperwork and charged BOTH times as an overdraw when something else came in. I had transferred some money between our accounts to try to straighten this out because I didn't know that the new policy is money deducted from available balance when you swipe the card and they took that 110.00 and said if I made an electronic transfer that didn't waive the fee! They now consider pending as automatic hold on funds but if it's an interbank transfer it's still pending? What's UP!!!! Have banked here approx. 10 yrs with none of this kind of Bu##SH#t. Am changing banks TOMORROW!!!! So is my daughter!!!!! Made me wait OVER 24h for a cash deposit in the ATM to be credited. CASH. Sign on the banks says cash is automatically credited. The machine counts it an takes a picture of it for crips sake. FRAUD LEGAL ROBBERY
Sorry for the double post!!!!
Posted by Westchaser on 2008-05-22:
Allow me to clarify my original post. As you will see, I have a very legitimate reason for managing my accounts as previously described.

Account-1 is mine; the parent account. Account-2 belongs to my wife. Since I am the head of household / breadwinner, I choose not to put excessive funds into her account. Instead, she gives me receipts for purchases on a given day and I transfer the funds to cover those purchases. This routine works, considering I perform the transfer BEFORE the designated BofA "cut-off" time. Again, my goal is to keep a low balance in my wife's account.

This method worked fine until BofA's recent change to their policy regarding Friday's purchases NOW being processed ON FRIDAY ... when they used to stay pending until Monday's batch processing.

As an update, during my recent call to discuss the overdraft fees, BofA told me that their recent policy change was discussed in a recent statement. Using their online portal, I opened the last 7 month's worth of statements and not one made any such mention of this policy change.

I appreciate all the attention this post is getting. My main goal is to keep others from getting screwed by BofA's change who, like me, were used to not worrying about Friday's purchases until Sunday afternoon.
Posted by Westchaser on 2008-05-22:
One more point to add - especially for YOKE. TNCHUCK100 understands my point; thanks for the support ;)

"PENDING" used to mean that a merchant swiped my check card for authorization. That authorization does NOT tell the merchant whether or not I have adequate funds in the account. Instead, it merely confirmed that my card was active and valid at that moment. It's not until the bank receives the paperwork from the merchant that the transaction is finalized and funds are physically withdrawn. Now, however, BofA is allocating the funds (placing a "hold" on the funds) for PENDING transactions. That's just crazy, in my opinion.

When I shop at the supermarket, that charge typically finalizes the next business day while a gas station charge takes 2-3 business days to impact my account. Heck - I've even seen pending transactions where the amount is WRONG *until* the merchant paperwork is received and updated by the bank to reflect the proper (lesser) amount. That is typical of restaurants and other merchants who also process tips.

Have you never rented an automobile? The leasing company will say "We're going to run an authorization against your card for the $xxx.xx but we won't actually remove the funds until you return the vehicle and we see exactly how you used it." This is one example that, according to the new policy at BofA, could potentially cause one's account to go into overdraft, since the initial, assumed cost may be significantly higher than actual usage.
Posted by CrazyRedHead on 2008-05-23:
From what the Judge told me over 10 years ago is that it is illegal to write a check if the funds are not present to cover it at that very moment, the same goes for debit transactions. now. I always thought that you should have the money in the account to cover what ever you write/swipe for. I haven't had this problem for 10 years once I understood the correct way to handle my checking account.
Posted by yoke on 2008-05-24:
westchaser, I understand what you are saying, BUT if you don't have the funds to cover the transactions then you should be charged the fee's. If the funds are there you won't be charged the fee's. I have a CU account. As soon as I use my debit card the transaction either is taken out immediately or is put into pending. If it is in pending you have to make believe the money is not there, just because it is in "pending" does not mean you can spend it again in hopes you get the money in the account before it clears. So many people are upset that banks are actually taking the money out before the "paperwork" comes in.
Posted by Westchaser on 2008-05-27:
Hello Yoke, perhaps you overlooked my original post where I stated "In the past, using my bank card (non-debit)..."

I am referencing non-debit transactions. You are indeed correct that Debit Transaction are IMMEDIATELY pulled from one's account while standing at the checkout counter. That's precisely why I don't "do" debits.
Posted by BuckyCub on 2008-06-02:
I moved money between accounts and they told me that once the card is used it is automatically taken out of the account, and if the funds aren't there it is an overdraft. Even if I get home 10 minutes later and move funds to the account, which I used to do a lot. Yeah I was with BofA for 10 years not anymore they have lost my business and I am telling my friends to avoid BofA.
This isn't the first bad experience I have had with them either, posting wrong accounts, closing wrong accounts, their people don't listen, don't ask questions and just plain don't care. Maybe they have gotten to big to care!
Posted by BuckyCub on 2008-06-02:
You all can chew this over don't know how this will make you all feel. I am an economics student so that is why I have a lot of this stuff...
The Banks have brought to our attention a copy of a provision in Texas law4 that provides generally that checks “may be accepted, paid, certified, or charged to the indicated account of the bank’s customer in any order and before or after the bank’s regular working hours.” Texas Commercial Code section 4.303 (emphasis added). The Banks note that the State Bar Committee comments to that section state that --
Although the discretion given a bank by subsection (b) is great, the bank must continue to act in good faith in establishing its policies and procedures in this area. For example, a procedure designed to maximize the number of returned checks solely to increase returned check fees charged to customers would not be appropriate.
Texas Business and Commercial Code Ann. Section 4.303 (commentary) (West 2000).
Although this letter does not address the applicability of state law to the Banks, we note that the check-posting provision of the Texas Commercial Code cited by the Banks, which permits the Banks to post checks in any order, is consistent with the Federal law governing national bank fees, as embodied in section 7.4002(a). We note further that a relevant factor in evaluating good faith may be whether a bank’s actions were inconsistent with the practices it had represented to its customers that it would follow. The Banks have represented that their deposit account agreement accurately describes the high-to-low posting order that the Banks use.
Posted by JaWa on 2008-06-14:
I agree with having your funds in the account and then using the money, but when I first realized BOA was allowing you to go into the red, I called them and said I don't want them to do that, I would rather the card be declined. They told me it was a courtesy to me since I was a long time customer. So I used this feature for almost two years. They then started charging fees with no notice. I called them and two c.service reps said it was in the statements, and one c.service rep said they sent out notice in the mail. They are liars and I feel this was a scam to double their billions in OD fees. I closed all of my accounts. I was with them 10 years.
Posted by PolishGirl on 2008-06-15:
This is your problem only, your bank account is your responsibility alone. If you don't have money, don't spend what you don't have. Getting overdraft fees is your fault. Bank of America's new policy is to deduct from your account, every time that you use your debit card, whether you swipe it like a credit card or put in your pin, be sensible and have money in your checking account. Have a cushion of funds that you never go below that amount. Never post date checks, it never works, the merchant will cash it way before the date and that is still a valid transaction, because you wrote out the amount and signiture on the check. Bank of America does hold checks, so does any other bank. Always make deposits before cut off time, cut off times are posted everywhere in banks and at atms. I am sorry about your what happened to you but it is still your fault, your account is your resposibility to maintain.
Posted by joyn49 on 2008-07-09:
The consumer action site has a form letter to be filled out for legislation pending AGAINST charging od for PENDING transactions. This letter has to be sent by Jul 18. Please fill this out. The legislation is pending through the federal reserve board. BofA executives have made substantial contributions to an Ill dem who sits on the banking commission. This legislation is under overdraft protection fees.Please let your voice be heard!
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Intentional overdraft fees
Posted by Alter.ego on 01/26/2008
KANSAS CITY, MISSOURI -- Those financially painful overdraft fees charged by Bank of America seem to be so commonplace among hard working Americans, like myself. I've been a customer of this institution for many years and no matter how close or how often I monitor my accounts these fees manage to materialize in one way or another.

I admit that like millions of others, I flirt dangerously close to a check-to-check lifestyle. On many occasions I've accepted overdraft fees (sometimes several hundred dollars) and simply blamed it on an oversight on my part. I decided sometime ago that I would track my expenses even closer. What I found was very disappointing.

In several instances I uncovered changes to transactions that could have only been initiated by the bank itself. One evening a debit would clearly show as "posted" or "cleared" and the following morning it would show as "pending". That alone is disturbing, but I've now found that these errors frequently accompany overdraft fees.

Another issue I've come across

Example

Balance = $100.00
Debit - 6.00
Debit - 3.00
Debit - 9.00
Deposit + 500.00
Debit - 95.00

New balance = $487.00
(very simplified of course)

Now with a quick keystroke and "re-arrangement" of the transaction sequence by the bank, your statement looks like this.

Balance = $100.00
Debit - 95.00
Debit - 6.00
Debit - 3.00
Debit - 9.00
Deposit + 500.00
Overdraft 35.00
Overdraft 35.00
Overdraft 35.00

New Balance = $388

How many of us remember the exact sequence of events in which we make our transactions?

Guess what? It's all legal!

I've closed my account with this institution.

     
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Posted by tnchuck100 on 2008-01-26:
You are right! It's legal. Our government permits it. And, when the account is opened you agree to it. Legalized theft. Plain and simple.

Congratulations on closing the account. Find a credit union.
Posted by ejack053824 on 2008-01-26:
BOA is nothing more then a pack of thieves! I will always use my credit union.
Posted by Anonymous on 2008-01-26:
Chuck is right, it's legal. Further, what IS illegal is writing a check or using a debit card before the money is in the account. It is rarely enforced, but someone with whom you bounce an item is within their rights to file criminal charges against you.
I also agree that you are better off at a credit union, but it isn't going to save you if you are spending money that isn't in the account, then trying to cover the debits before they hit. They have technology on their side, and you are inevitably going to lose the race. Debit cards are not your friend, go back to writing checks, at least it will buy you a few more hours to get your deposit in.
Posted by miketech on 2008-01-26:
In my opinon BOA is a bank to stay away from. I just want to throw out a warning in case anyone doesn't know this and it applies to most banks I think.

If you get paid and deposit a check on Fridays, after a certain time, a lot of banks won't credit the deposit till Monday morning, some even Tuesday morning. So if your close to the bone on Friday and write checks or use your debit card over the weekend you will get over draft fees even though you had your deposit in.
Posted by Ponie on 2008-01-26:
Maybe you should make up a budget and stick to it? Just cut out a couple of Starbucks' a week and it might help.
Posted by CrazyRedHead on 2008-01-26:
I have been with BOA for close to 20 years and haven't had a problem. Most of the problems were my fault and I have learned from that. The other problems were actually bank mistakes and they have owned up to them and fixed them in a timely manner. They have always credited my deposits first and cashed out of state, personal checks for me without having a hold on them. Now the checks were small but I got the money almost immediately. I have gotten credits of 10.00 and 20.00 occasionally when something was wrong on the banks side. Now, let me stop talking here before I'm jinxed.
Posted by LuvToKnow on 2008-01-30:
your original sequence of events would have been excellent had you of made that $500 deposit before cut-off on the day you swiped your card for that $95 transaction ... Being mindfull of your banks cutover times and procedures is your responsibility as a consumer
Posted by chow on 2008-01-31:
It is perfectly legal for bank especially big one to conduct business their way here, if you have a complaint about bank, even the city police refuse to intervene most of the time,as they know that the institutions are major contributors in city political elites and sadly the country too.

Being a small guy, it is better of close your account in bank and go for the credit union if you are smart.
Posted by rojerdojer on 2008-02-06:
Oh, it gets so much better than this too! They have a planned marketing scheme that includes charging over the limit in the way they post too. Bankers (Accountants?) live for this kind of stuff. There are also personal issues they love to do too. Like shutting off automatic payments over and over so that they can get late charges from you. I caught them no less than 6 times in a row doing this to my account. They would shut off my automatic payment then say I didn't pay and hit me with a charge. I called them on this over and over, and always got the charges reversed, but I found out there was a code that referenced internally to an employee at B of A. This told me they were doing it manually and it was NOT a mistake, but being done on purpose to try to make money off me. They hate me cause I would borrow 25K and then in 3 months pay if all off before any real interest could buildup. They have tried to punish me over and over for running up a big balance and then paying if all off. Every time I pay it off, WAM, they try something new. I could go on and on and on, they messed with my accounts in a kinds of ways, even shutting it off once so I could not pay it off. It was not maxed out, nothing like that....I used to work for the PLUS network in the IT Dept, I have been around bankers, I have balanced accounts. This is all a plan they have, they talk abou it openly in the higher ranks, I have been in the halls and heard things that would make you sick. This is why I no longer work there, I hate banks!!!
Posted by chow on 2008-02-07:
rojerdojer, you are right on man!Indeed bankers are very tricky.
Posted by Miss Misery on 2008-02-23:
"... make up a budget and stick to it? Just cut out a couple of Starbucks..."

Sometimes judgemental comments like this overshadow the point of the post.

Alter.ego shared a banking experience that was honest (as to his banking practises) and informative. The post prompted me to review my bank statement's order of deposits and bank charges.

Nowhere in this post did I read a concern regarding budgeting or an over consumption of Starbucks.

Thanks alter.ego
Posted by lcfloridian on 2008-05-31:
banking practices can be true, but lets also put it where it belongs. how is the bank acting in the best interest of its customers if it allows transactions to be made if the money isnt there because they dont post my deposit, but they will post my transactions as pending and subtract them from my account the same day causing a negative posting but doesnt post my deposit that was the same day of my transaction, but will post those $35.00 ISF fees. Its just becoming more unethical with this banking establishment of customer service and morals of the name that they carry "AMERICA", because they are far from american. We are working to pay banks a gallon of gas, Right, I'm all over that. PLEASE lets put it there that this bank doesn't care about the american people. This is a hilarious cost of a fee. I had overdrafted my account by $1.25 with keep the change transactions, well the bank was so kind to transfer the amount from my savings with the overdrafted protection plan, HA HA! and the funniest part was they charged me $10.00 to do that and overdrafted my account with the transaction fee and charged me an overdraft fee of $35.00. so that $1.25 was worth to them $45.00 HA HA! Welcome to Bank Of AMERICA!!! lets totally protest this banking establishment as I will do only Direct Deposit to a savings if I can?? my employment demands direct deposit only, but I'm not sure if its only checking??? And it will not be with this bank as I seek a new establishment. There online services are a joke too and are totally not accurate just as their ATM's they give you different balances and then brush the blame off on tecnology not posting our deposits or pending transactions what a joke they are...This is their choice to offer us the ATM's and online services, but its not accurate equipment so you can be messed up in counting your next american dollar and to count money that you dont have because they say you have it one minute, and you dont the next so much so that you owe them more in the long run because they mess with your accounts and do what they want with your money. Exspecially in taking it.
Posted by speedy relief on 2008-06-24:
I've has the VERY SAME situation happen to me recently within the past two weeks. I made DEBIT purchases over the weekend, using my PIN number and BOA STILL re-arranged my transactions to suit themselves in order to impose 10 overdrafts against me. BOA SHOULD PAY FIRST IN FIRST OUT INSTEAD OF HIGHEST TO LOWEST ESPECIALLY WHEN THE PURCHASES WERE MADE TWO DAYS EARLIER.
Posted by old fart on 2008-06-24:
I use a debit card for all of My purchases and find that it depends on the business where you used the card..some businesses don't reconcile their machine for a day or two while others, like Walmart, are instantaneous..
The bank doesn't dictate the order of payment...
Posted by speedy relief on 2008-07-01:
Old fart I do understand all you're saying. MOST of the Debit purchaes that I make are at the same fuel stop, either weekday or weekend. I have noticed that if I use my debit on monday, it comes out immediatly. if I use it on sat or sun. it doesn't come out immediatly, yet BOA holds it til Monday at midnight til THEY (BOA) get around to seeing what comes in for that day, and pay highest to lowest, thus, kicking out all my weekend purchaes as overdrafts, even if I make a cash deposit on Monday to cover the Tuesday purchase (which was after 6PM. on Monday)
Posted by Azurehvns on 2008-07-03:
Pretty much same happened to me, AGAIN (and for the last time, I'm switching) - I carefully moniter my banking transactions online, almost daily. Two O/D charges, when I inquired of specifics they gave me quite DIFFERENT transaction info than what my online acct showed. I can't get a straight answer WHY/HOW. In addition, I have O/D protection where money should be just taken from savings. Didn't happen. Though they have credited my charges I DO NOT like them having their own transactions which differ from my online banking! And lastly, their "Customer Service" SUCKS!!! It is way too difficult to get an actual bank person on the phone when calling a branch, you eventually get transferred to their d*** 800 line. I'm so done w/BOA banking.
Posted by CAF79 on 2008-07-17:
This is exactly what's happening to me! I'm closing my account too.
Posted by rexljones on 2008-12-15:
Same circumstance has occurred to me with National City. Banking transactions should be posted in the order in which they occur. They can tell you exactly what time a transaction occurred and it should be illegal for them to alter the order in which your transactions have occurred. I am surprised that a class action attorney hasn't decided to pursue this as the amount of money involved would be huge.
Posted by Extremely Mad on 2009-01-06:
I wanted to point something out. First off if you save each of your receipts they ALL have a time stamp somwhere to show the time of transaction so if they are 'rearranging' as you say then you'd have proof. Second it may not be the banks fault if the store didn't submit the transaction till the end of the day when they close the batch. (some places do this not all). So before we jump out and just blame the bank see if it's not a combination of the two.

For the record I have and hate BOA....
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(%*#(% CROOKS!!!!!
Posted by Gr8stems on 07/22/2006
ROCKWALL, TEXAS -- Steer clear of BANK OF AMERICA!!! WE have had a checking and savings account with Bof A for years, never noticed anything fishy going on until one day my husband was balancing the checkbook online and noticed there was an NSF charge for a check that had cleared 2 days before (he had it marked off in the check book as being paid) He called the customer service number and was treated like he was trash! He was told that the item had not cleared when he said it did and wasnt reversing any fees. We found several items they had cleared and then couple days later we were cherged NSF fees for the items that cleared!!! My husband went balistic with them on the phone, still to no avail, no reversed charges. So in Feb. we decided to close the account, we did or we thought we did and here comes this electronic debit that NOONE knows about and NOONE can tell us what its for, the only thing they can tell us is WE owe THEM 249.00 for OVERDRAFT FEES!!! Our current bank has put a hold on our whole account, we cant draw out or put in our ATM card is no longer working, our direct deposits are not going through. Another words if we dont bank BANK OF AMERICAS B.S. fees, were screwed! A friend of mine noticed her account with B of A was the same way, debits being moved around so they wouldnt clear and she was chearged over 4000.00 in FEES, she contacted an attorney and was told she has a VERY good case against them. She was smart enough to print out all her online banking balances and could prove where her debits were being moved around where they would not clear!
So.......STAND clear of Banf of America, they are nothing more than CROOKS, THEIFS, LIARS!!!!!!!!!
     
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Posted by Anonymous on 2006-07-23:
It might be a glitch, or it might be that he bank paid checks against uncollected funds. Did you have deposits pending at that time? When a bank does this, it is considered a courtesy to you to pay the check and charge you for uncollected, rather than to return the check and charge you a returned check fee.

As for the unknown debit, just ask for a Reg E form to file a fraudulent transaction claim, and have th etransaction reversed. If the fraudulent transaction caused an overdraft, you are able to get those fees back also.

Good luck.
Posted by evagoblin on 2006-08-29:
Don't want to be accused of plagarism, so this is from Wikipedia which wrote an essay on B of A notorious overdraft charges.
Excessive overdraft fees

In 1999, a class action lawsuit was filed against Bank of America for engaging in the practice of "Biggest Check First" check clearing. Put simply, the bank clears checks in order from biggest to smallest for transactions presented on the same business day, with less regard to what time they come in during that business day. Customers allege that this is purposely done, to cause more checks to bounce, triggering more overdraft fees for the bank to collect.

Here's an example: A customer has $1,000 in his checking account. Check numbers 101 through 104 come in for processing for $60, $10, $30 and $950, in that order. If the checks are processed by the check number or in ascending order (smallest to largest), the first three checks will clear and the fourth will bounce, meaning the customer will be charged one fee for insufficient funds. NationsBank (now Bank of America) can charge $19 to $35 for each bounced check. If the checks are processed largest to smallest, however, the $950 check will clear first, and the checks for $60, $30 and $10 will bounce, resulting in $57 to $105 in fees. (It depends on how many over drafts the customer has. The first is $19. It progressively rises to $35 with each additional.)

The bank employs the same practice for ATM and debit card transactions. Another example: A customer has $100 in her account. On Saturday she withdraws $80 from an ATM. On Sunday she buys a coffee using her debit card for $3 and puchases a small amount of gas for $15. As of Sunday night, she still has $2 remaining in her account. On Monday, her recurring monthly cable bill is auto-debited from her account, for $150. The bank clears this transaction even though the customer is now in the negative. This is standard grounds for an overdraft fee, so the customer expects to find one on her next statement.

However, when the customer checks her statement, she finds four overdraft charges. One for the cable bill, plus one for each of the debits over the weekend. The customer is naturally confused, as she had not overdrawn her account for any of the weekend transactions. Yet, the bank counts those charges as overdrafts because they do not post until the next business day (Monday), even though the transactions were all authorized over the weekend. Since the bank employs "biggest check first", the smaller weekend transactions clear after the cable bill that came in later in the business day. The customer get four overdraft charges total, instead of one.

BOA paid a $9M settlement and the lawsuit was dismissed without an admission of fault. Bank of America continues to process transactions from highest to lowest amounts. New York, California, and Nevada are currently fighting the practice.

When asked about the practice, bank representatives claim that it insulates the Bank from undue risk. By paying the largest items first, the Bank ensures that no loss is incurred on the largest items, by withdrawing the appropriate funds from the customer's account and honoring the largest, and most risky items. Smaller items, which may or may not be honored against a negative balance, depending on the account officer's decision, pose less liability to the Bank, and are therefore paid last. Also, regardless of when checks are written, their negotiation can happen in a number of ways, including direct presentment at the drawee bank, at which time funds are immediately reserved out of the customer's account to pay cash to the payee who cashes the item. Such policies are designed to reduce the risk of loss to the bank.

Furthermore, bank representatives also state that larger transactions typically represent more important items on a customer's account such as a mortgage or rent payment, car payment, insurance payment, utility payments, etc. By paying these items first, it is ensured that the customer's most important items are not affected, although smaller less important items may be affected.

Bank of America customers also claim that the bank's ATM and Online Banking systems can be confusing, and cause a false impression of the available balance. Customers claim that this increases the likelihood of incurring overdraft fees. Customers claim that when using their Bank of America debit card for purchases or ATM withdrawals, the amount of the charge is immediately deducted, then made available several days later, then deducted once again. This is as a result of the authorization hold process. If charges were made during the period when the money was temporarily back in the account, those charges go through - and incur an overdraft fee. BOA's response is that their Online Banking and ATM systems should be used in conjunction with a written account register so that customers are aware of all pending transactions on their accounts.

In fairness, the "Biggest Check First" policy is not unique to Bank of America, and is common among other large U.S. banks, such as JP Morgan Chase, Citibank, and Wachovia. BoA has increased the length of time [debit card] authorizations are listed as pending in online banking from 1 business day to 3 business days to reduce confusion over the actual available balance.

Online Bill Pay

Another relatively new policy Bank of America has implemented is the sending of automated bill payments without available funds -- and the related charging of fees. If previous Fleet or BankBoston customers had an automated bill payment set up but either scheduled the payment for the wrong day or else didn't deposit necessary funds in time, the bank would attempt to make the payments for three days until the money was available, before cancelling the payment attempt. As no money would be transferred unless funding was available, no fees were charged.

Bank of America, however, changed their policy to send the payments even with a zero balance, even electronic payments where it is clear the funds do not exist. They then charge customers up to $35 per scheduled payment. They also do not then cancel the payments, but continue to re-attempt the payments three more times, meaning that if customers do not deposit funds immediately into their account, they can be charged up to $105 per mistakenly scheduled payment, for up to five mistaken payments, or $525 per incident, where their previous banks would have charged nothing.

In February 2006 Bank of America also changed their online bill pay policy to send customers' automated bill payments without debiting the payments from their account until the day after they are processed by the payees' bank. This differs from most online banking customers' previous experience with having the funds immediately debited from their account to help keep their account balance positive, and would seem to be done purely to incur additional overdraft charges.
Posted by codfish on 2006-10-20:
Thank you, Evagoblin! That explanation of overdraft fees finally explains the insanity of cascading charges that reproduces more charges like rabbits (recently in excess of $400, all starting from a little 50 cent transaction that tipped my account ONLY because BofA had electronically charged for check printing WITHOUT WARNING OR NOTICE and also fees for using checks because that month my average balance was lower than expected, so they are collecting both coming and going! Everytime I covered the account, previously authorized minor transactions I had made over the weekend of 10 or 20 dollars would roll in, causing more charges, when they simply should not have been authorized, my card should have been declined...the whole thing snowballed just when my wife and I could least afford it....we are withdrawing all of our funds from B of A--the supervisor only repeated like a robot, "but you made the transactions" no matter how many times I tried to plead that each time we covered the account, the additional charges would overdraw us again, the additional transactions would not have done so at all, after the first time covering the account...he had no power to do anything, it seems, despite our having deposited over the last three years about $150,000 in their coffers so they could earn interest off of the checking that we paid for...what a sad system, and a sad statement of the present human condition...
In the old days of Great Western banking, years ago, before the big bank buyouts, I could go in and talk to a real person and work things out reasonably--now it is all by so-called "customer service", with very limited grasp or care for the customer's reality and going strictly by the book rules, even though their system should be declared illegal!
Does anyone know of any current class action suits that could be joined?
Thanks
Posted by David_2 on 2007-02-17:
A month ago the bank of america offered me a credit protection plan. The lady was very sweet and said (more than once) that I could cancel at anytime. A guy came on after I agreed, ostensibly to verify that she had been polite. He really wanted to verify that I had agreed to the plan. This made me suspicious and I promptly called the credit protection plan number, but they wouldn't talk to me, unless I gave them my account number.
This seemed suspicious: I called BoA and the person said the plan was valid and gave me the number to call. I called and the CPP said they had not record
I got a confirmation and I called again to say I had cancelled. They said there was no record.
I got a bill from BoA and they said I had to deal with CPP. I was told that indeed the plan had been cancelled.
A month later I get my bill with over $ 30 in extra charges. I had immediately paid of the original purchase that caused me to use the card in the first place.
I've now cancelled my card; but what next.
I consider this fraud on a big scale. Who is going to put those crooks in jail.
Posted by ohmygawd on 2007-08-09:
bottom line - if you don't have the money - don't spend it!We are not kids, back in the day, a check register was the only way to make sure you had funds in the your account. You couldn't even call to get your balance - you had to wait until the end of the month to do a check reconciliation off of your statement (i'm sure those that don't keep a check register have no clue as to what a check reconcilation is) If you have only a $100, logic will tell you only to spend $100 - HELLO!!!!! This is a complete no brainer. So regardless of whether any bank posts highest to lowest or authorization holds fall off - you still can't spend more than you have. And yes I bank with bank of america and wells fargo - I recently overdrew my account at Wells Fargo, I would never call my bank to DEMAND overdraft fees to be refunded for my stupidity!!!
Posted by pjhwin on 2007-12-14:
If the bank is wrong and you can prove it, take them to small claims court. Make them pay

Electronic Fund Transfer Act. If a financial institution does not follow the provisions of the EFT Act, you may sue for actual damages (or in certain cases when the institution fails to correct an error or reaccredit an account, for three times actual damages) plus punitive damages of not less than $100 nor more than $1,000. You are also entitled to court costs and attorney's fees in a successful lawsuit. Class action suits are also permitted.
Posted by pjhwin on 2007-12-15:
ohmygawd
your bottom line- is right people should keep up with their account balance.

But, 1 + 1 doesn't always = 2 when you figure in Holds against account balances.

People will find that they will have a lot less problems with their account if they use their pin number for transactions, instead of using it as a charge card.

Remember, when you make purchases, when the screen comes up cash or credit(use your pin number)

and keep track of your balance people, don't try to spend what you don't have.
Posted by hateboa25 on 2008-04-01:
BoA are crooks
Posted by k12nitjoi on 2008-10-07:
This is not a computer glich! This is VERY TRUE! People don't be so naive as to think banks are on your side, they are there to MAKE MONEY. They do move posted transactions around so they can charge you overdraft fees. It has happened to me and I am closing my account with them. I'm not so stupid to spend money, if I knew I didn't have it in my account. And I'm sure the people this has happened to aren't either. Whatever you do DON'T GO TO BANK OF AMERICA! How do you think they're are the largest bank in the country? By SCAMMING people!!!!
Posted by Gene on 2013-06-22:
We wanted to refinance our mortgage to get a lower rate, and pay off some credit card bills. They said they could do it through the F.H.A.. We have made every payment on our house for the last 20 years, never been late, never missed a payment. We filled out all the paper work, they said everything looked fine. The appraiser came out, looked around for about 15 minutes, and left. We recently put a new roof on both the house and garage, which I pointed out. A week latter, they sent a letter saying the program was no longer available, no other explanation. If the program was no longer available, why didn't they tell us before the appraiser came out, I assume they won't be refunding the appraiser fee. I haven't seen anything like this in my life. I would recommend that people avoid doing business with this bank, I was warned, but did not believe what I was told, I do now.
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Overdraft fees
Posted by Boa_sucks on 09/19/2007
94539, CALIFORNIA -- Its been 30 days and I am still fighting with them over an issue.

Issue is:

One one night between 10pm and 8am next day, my account was +1500

After 8am next day it was -150. So I deposited +500 before the bank closed for the day. I got receipt as +350 from the teller, and when I checked my account again in night it was +100.

Story from BOA: my account was charged with overdraft fees on this day.

I called BOA several times (most of times they hung up on me, I am very patient person) but they never understood my concern. They kept on saying that +1500 never existed in my account. (this is ridiculous)

I went to my branch and talked to vice president. She was fair enough to advise me to close the account immediately.

Thats it, I got rid of this BOA scum for ever.

Lesson: Once hurt, never repent. Just avoid the source.
     
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Posted by chris513 on 2007-09-19:
if you still can, and, if you haven't already done so, i would print out a copy of your statement online showing where they took 1500 out of your account for no particular reason and present it to someone at your bank. maybe that would help you out.
Posted by Anonymous on 2007-09-19:
I'm not sure I follow your story completely but I think you did the right thing dumping BoA. [Boa_sucks], Thanks for taking the time to post your story. I voted your contribution 'Very Helpful'.
Posted by Anonymous on 2007-09-19:
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.
Posted by boa_sucks on 2007-09-19:
I wrote, emailed, called and visited BOA. Even showed the online account status screenshot. They were so persistent that it was not a bank error. My persistnece was nothing before that.

In a nut shell, the od fee charged was for the transaction which I was not aware of and thetransaction happened behind the scenes.

Posted by Anonymous on 2007-09-19:
A behind the scenes transaction, hmmmmmmmmmmm.
This reminds me of a movie i saw , never mind.
Posted by Anonymous on 2007-09-19:
What did your check register say when you showed it to them?
Posted by boa_sucks on 2007-09-19:
I asked them to investigate it. They said they did and found no bank error. When I showed my copy, the branch vice president suggested me to close the account. And I did.
Posted by Anonymous on 2007-09-23:
Why did the branch vice president suggest you close the account? Did she see the error and tell you that BOA would never own up to it? Part of the story is missing here.
Posted by DebtorBasher on 2007-09-23:
JohnInSoCal...are you related to SteveFromSoCal???? LOL!
Posted by Anonymous on 2007-09-29:
No Debtor, no relation to Steve.
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Bank of America's Outrageous Overdraft Policy
Posted by Credit Hater on 05/09/2008
Consumers beware! Bank of America has a new overdraft "policy" that will have you reeling in the overdraft fees without a leg to stand on in your defense.

A few weeks ago I looked at my account balance and although there were no overdrawn charges, there were 8 (yes count them 8) overdraft fees added to my account for $35 each. Now, me being a sensible person I called Bank of America to say that there must be some mistake because no items had been overdrawn.

The response was less than receptive.

It seems that in the past when I made a purchase at the grocery store, and then went to the bank (or do an online transfer like I did) to make a deposit it was fine. However, RECENTLY (the agent couldn't give a date) Bank of America has changed their policy and now does all tracking of purchases, deposits, etc. in REAL-TIME. So, even though the money was in the account when the charge 'cleared', it was not available when the purchase was actually made.

Now, to a consumer who just paid Bank of America $280 (35*8=$280) for things like Wendy's ($3), grocery ($15), etc. I was very disappointed in their logic.

I asked if a notification was sent out, and the agent simply replied, "We don't have to". Well, since you obviously feel that BoA let you in on a cut of my overdrafts (which I'm sure they didn't Mrs. Agent since you still go to work every day too), I have nothing more to say.

Also, since these overdrafts sent other purchases into virtual overdraft and I'm sure I'll pay around $700 this month in fees alone.

In essence, it seems that I now work for Bank of America and next week, once a few checks that are out have cleared. I'm going to quit.

There should be a class action lawsuit brought against Bank of America for their practices.

     
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Posted by madconsumer on 2008-05-09:
the days of floating money are gone.
Posted by yoke on 2008-05-09:
What BofA has done was a courtesy paid your debits to avoid embarassment for you. When you made the purchases you did not have the funds available. Would you rather BofA decline your $3 purchase at Wendy's?
Posted by Anonymous on 2008-05-09:
The usual course of events is deposit money first then draw against it. Not that hard to grasp.
Posted by steve101 on 2008-05-09:
I appreciate people like you who don't understand how to use a bank and thus pay lots of fees . Because of you I get lots of great service like free checks,free checking account, free safety deposit box, free money orders, free stock trades, free certified checks, free bill pay, cash back credit cards, low interest rate credit cards, and the list goes on and on. Thank you.
Posted by Anonymous on 2008-05-09:
The charge counts when you swipe your card, now when the item reaches the bank. This isn't new. Like Rob said, you have to hactually have money in your account before you use it.
Posted by Ponie on 2008-05-09:
Wow, steve & Ken--I actually have to have money in my account before I spend it? When did this crazy practice start? :) You're so right, steve. It's because of posters like this that I get all the freebies you list. Please keep it up.
Posted by Anonymous on 2008-05-09:
Money must be in account and available for use before you spend it? No, it's not a new concept. A huge number of people wrongly believe that deposited funds are immediately available. In fact, they may not be available for up to a day later. So, they deposit their paycheck on payday and then go out to buy groceries (Ohhh...how grossly irresponsible!). Banks know this. Delaying the availability of funds generates 'overdraft' fees. Isn't it odd that a deposit (given how checks are handled today) cannot clear quickly, but a customer's withdrawals clear like lightning? Their comment 'we don't have to' with regard to notification implies they are less concerned with overdrafts than they are with garnering fees.
Posted by yoke on 2008-05-09:
Why do you feel BofA needs to notify you that you must have money in your account to spend. I thought that everyone knew that you can't spend money you don't have. Even my 11 year old has that figured out.
Posted by Anonymous on 2008-05-09:
Ditto DocJ.
Posted by Anonymous on 2008-05-09:
yoke-Many people deposit their checks and wrongly assume the funds are available. They are not spending money 'they don't have'. I never have overdrafts and I keep an open line of credit on my checking account 'just in case' of a glitch. Notification by the bank would be a useful tool in preventing unauthorized use of funds (my bank makes inquiries via my e-mail if a transaction seems fishy). I also get a courtesy e-mail from the bank if my available funds fall below a threshhold I set. The few credit cards I keep also e-mail me if my spending reaches a threshhold I set for myself. These are nice services! BoA could do likewise. But, this bank knows overdraft fees generate revenue...customer service 'costs' revenue. Not everyone is irresponsible, yoke.
Posted by yoke on 2008-05-09:
ghost, this op admiited to making the purchases and then going to make the deposit and is now upset the BofA is charging her. It doesn't take a rocket scientist to know you have to add before you can subtract.
Posted by Anonymous on 2008-05-09:
yoke-Yes, I know that. And it makes the better case against BoA: Since the op did not have the funds in the bank, the bank SHOULD have declined the transaction. Most credit cards operated this way in the past as well. BUT, the banks and CC issuers are not really concerned with overdraft prevention or exceeding pre-set lines of credit. Their main goal is the collection of 'fees' that are much more profitable than the interest charged on loans. Which is more successful in preventing overdrafts...the fee added after the fact, or the clerk telling the customer "I'm sorry, but the transaction has been declined"? Thank you, yoke, for helping me clarify and better state my answer to the poster.
Posted by yoke on 2008-05-09:
ghost, I agree with what you are saying. I wonder if this op would be on this site complaining that BofA declined her $3 order at Wendy's considering she was going to make the deposit later.
Posted by Anonymous on 2008-05-09:
yoke-I cannot base a response on what the op 'may' do in different circumstances. To assume, without evidence, that this complainant would likely come here to complain about a declined charge is wrong on many levels. I just can't bring myself to be so cynical. All best.
Posted by Anonymous on 2008-05-09:
I have a hard enough time reading my own thoughts.
Posted by yoke on 2008-05-09:
ghost, I was being sarcastic.
Posted by CrazyRedHead on 2008-05-09:
I have been with BOA for the past 20 years with no problems in the last 10. It took me almost going to jail to learn my lesson with the bank.
Posted by Anonymous on 2008-05-09:
I know! I ask you to call me on it (being cynical) when you see me doing it too! It's easy to become so. All the best.
Posted by jktshff1 on 2008-05-09:
JayD LOL!!!
Posted by Anonymous on 2008-05-09:
This is just a thought. I think some people may have debit card useage confused with the old-school method of writing a check. You did have a little lag time with checks in the past, but now they can go through very quickly too--for those that still use them.
Posted by Credit Hater on 2008-05-10:
What you posters fail to realize is that I would much rather Bank of America let me know that my account will be put in overdraft than to allow me to overdraft knowing that they are just going to charge me a fee.

YES, I WANT IT TO DECLINE AT WENDY'S for $3!!!

I would much rather have a decline than to pay $38 ($35+$3) for a hamburger.

Most posters don't worry because like I used to be, I had more than enough money in my charge account to always cover these purchases. However, I got into a habit of simply transferring money daily to cover the expenses. And, until recently Bank of America supported this.

My problems arise, not because I don't have money to cover my charges, but because I was not told the rules of the game had changed. And, with the new rules, they should also decline any purchase that puts me into overdraft.

BANK OF AMERICA IS DEAD WRONG.

Their practices of "real time" should be coupled with declines. Pure and simple. To date, I have $350 in overdrafts posted on my account in 15 days (since April 21, 2008) and it's not a matter of the money, it's a matter of bad banking on their part.

To all who disagree, may this never happen to you.
Posted by *Brenda* on 2008-05-10:
Sorry that you don't know how to manage money Credit Hater.

If this happened to me I would take responsibility for my own actions. *Shrug*
Posted by Anonymous on 2008-05-12:
Banks make their money from these fees and others, not to mention the interest they earn on our money. You were playing a transfer game that ended up biting you. Sad, but true. Any bank will impose the same fees. They don't care if you have the money in the account or not.

Moral of the story: Pay the fees and learn from this experience. I'll bet you will never make this mistake again.
Posted by b@nkerdude on 2008-05-14:
I work for a bank (not BOA) and unfortunately you can't please everyone. Years ago my bank paid overdrafts largest to smallest, which in turn, does create more fees (usually). Customers complained and we changed our policy to pay smallest to largest. THEN customers complained that we paid their small "meaningless" checks and returned their car payment. So we switched it AGAIN. I can't stand BOA personally but really it's the customer's responsibility to track their spending. Of course, humans err and we are open to refunding a fee or two in this situation. As far as Doc's comment regarding holding deposits, unfortunately the world has become one of fraud and greed, and banks lose a lot of money when we don't hold checks. I can understand both sides of the issues, but these days you simply can't expect a deposited check to be available immediately. Typically once your account is established, banks don't hold checks deposited that seem within your "normal" history. I hear differently about BOA but I guess they are the exception. Hopefully OP gets it straightened out and has no more issues. :-)
Posted by Saxxy on 2008-05-18:
I can sympathize with the poster. I was a BoA customer for 14 years and yes they came up with this policy to make money. The solution...keep enough money in your account to insulate yourself from such abusive policies...or Join a credit union like a I did. Make a purchase with your check card and amazingly it post the next day...no games. Deposit an out of town check..its credited that day...why...because your are a member, they are not there to rip you off. If they want to make money,,they do it the old fashioned way..via car loans..motgages etc. Good luck and take control.
Posted by waifrid on 2008-06-19:
You are borrowing money from the bank. If you have 10 dollars in cash and your purchase is 12 dollars - would the merchant tell you oh no problem, pay the other two dollars later? Nope... so don't spend money you don't have - simple as that.
Posted by speedy relief on 2008-06-23:
I've just recently found out that BOA DOES HAVE a low balance threshhold limit on your ATM/DEBIT card...YOU need to ask for it,they'll NEVER automatically offer it to you, otherwise they'll keep loading you up with overdraft fees. As of today, I'm tired of their lies and BS. I've changed banks, after being with BOA for almost 20 yrs.
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New Overdraft Fees On Pending Transactions
Posted by Jonjaktez on 03/18/2008
SENECA -- BoA has started charging overdraft fees on pending transaction (not posted transaction) when you go into the negative in your available balance. This will occur even if transaction(s) fall off and you're really not in the negative. I have spoken with BoA several times and even the corp. offices in Charlotte, NC. I have spoken to the Federal Reserve Consumer Help and the OCC. At this point there is nothing we can do except write our congressmen and/or congresswomen and complaint about this.

This isn't a big deal if you are able to control what pending transaction and amount are in your account but we not always able to do that.

It is common practice for restaurants to authorize a high amount than what your bill actually is and later go back and enters the correct amount; you have no control over this. So if you go elsewhere and spend money and this puts you in the red, you're going to get an overdraft charge.

If a merchant makes a mistake and you get a refund and have to redo the transaction (the refund does not show up until it post) and you go in the neg., you're going to receive an overdraft charge. What I mean is.... you spend $50 and that's wrong, so the merchant refunds you $50 and then the correct amount of $30 is authorized, your available balance will decrease $80 until the refund of $50 post.

Regardless of what falls off, you will receive an overdraft charge. This is by far unethical! Even if it is not illegal. BoA response is other banks do this.
So I urge everyone to write to their congressmen and/or congresswomen to complaint so hopefully we might be able to stop this practice.

I know there is a possibility that this will not accomplish anything but all we can do is try. The only other thing is to withdrawal all your money but if too many people do that, it could cripple the American economy and we don’t want that.
     
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Posted by grandma005 on 2008-03-18:
Use a credit card for all your purchases. Deduct amount spent from check book and consider it spent. When you get your monthly statement from credit card-write a check from your checking account. You should have this money already because you deducted from your balance-right. No NFS fees and no credit card interest this way. If you charge your resturant meals then there is no fear of being charged more than what you spent, same thing with buying gas-you are charged only amount that you spent. No pending charges and no holds on extra money by your Bank. If a merchant makes a mistake he voids the charge and rings up the transaction again. No holds on your checking account. Simple.
Posted by GothicSmurf on 2008-03-18:
Grandma, I think he's talking about other charges.

I know that gas stations will put a "hold" on your card from anywhere between $50-$75.

What it seems the OP is stating is that if the actual amount of the charge was $35, the bank holds $75 (which the person has no control over or is not always told about the pending hold). The bank then charges and OD fee for the full amount, even if the correct amount was $35 and there was more than enough actual $ to cover the charge.
Posted by grandma005 on 2008-03-18:
True. But if he stop using his debt card and used his credit card none of this would happen. When you use debit cards you are asking for trouble. Banks invented debit cards to make money. If you don't use debit cards then no hold is put on your checking account to get you in trouble in the first place. And why would you use a debit card to buy gas knowing that they are going to put a hold almost double what you spent? You would have to know that you have enough money in your account to allow for this. I just don't know how you younger people allow Banks to steal from you with their extra charges. Can anyone explain this to me? This goes against all good money management sense.
Posted by jonjaktez on 2008-03-18:
Grandma005, you have great alternatives to this issues but my post isn't about alternative or money management. My post is about how we, as a group, need to step up and stop this type of activities and other activities that are unethical. If we make adjustments, it doesn't stop it, we just lay down and say Ok do what you want to do, my king.

What BoA is doing is WRONG on every level and I feel it's time we stand up.

Haveing a bank account and make "charges" againt it is normal money management practices. The bank charging fees against what is pending and not knowing if the charge(s) is/are going to go through and post is not normal practices and we need to stop this or every bank is going to do this.

A BoA employee at the home office told me point blank that they did this to off set their losses on housing market.

This practice will hurt Americas more than the housing market is currently. BoA is responsible for approving home loans to people that couldn't afford it as well as the people who signed the papers. It is not my responsibility nor your responsibility to cut BoA's or any other lenders losses. I pay my mortgage payment every month. I choose a house I could afford. I also choose a house that wasn't at the top of my affordable range.

I know how to manage my money. I'm also not as young as you may think I am. I'm married with 6 kids. I also have an accounting degree and an currently back in school to further my education in the accounting department.

BTW I'm a female not male.

Posted by Anonymous on 2008-03-18:
Excellent info jonjaktez. It's amazing what these banks get away with these days. Those fees are not only unduly harsh but they hit the least among us... working people living from payday to payday. Where's the outrage? The Federal Reserve last weekend bailed out Bear Stearns to the tune of 30 billion dollars. Corporate welfare is alive and well. Where's the outrage? I will do as you ask and write my congressmen. Take care!
Posted by kurizu on 2008-03-19:
Wow, I thought I was the only one experience this. Usually I don't get many NSF fees because I have a deposit or etc.. covering it the next day or that day. Since when ever it started everytime I go over even when the transaction is pending I'm getting NSF fees now. Its making me mad, even when i get a NSF fee for a transaction that was made 3 days ago but the merchant hasn't submitted it and i got a NSF fee for it and it was when I had money in the bank but something else came out like today and it says "Well we see your account as negative and so that pending transaction gets a fee too"...

What? I called bank of america all they tell me is the same old thing and the guy can't do nothing about it. He didn't give me a good answer why i'm being CHARGED on pending transactions that haven't even posted to the account yet!
Posted by Anonymous on 2008-03-19:
The bank has no control over what amount the merchant places on hold in your account. If the merchant places a hold that is more than your available balance, the bank charges an NSF. Simple concept.

What you can do is don't use a check card/debit card for these types of purchases. Believe it or not, cash is still accepted by merchants.

Don't spend more than what is available to draw against. There is no more float time to spend away then try to deposit money into the account to cover it.

The banks don't cause your account to overdraw, you do.

The government doesn't have to hold your hand and protect you from the big bad banks. Your a big boy now. You can manage your own finances.
Posted by jonjaktez on 2008-03-19:
Robf you're missing the point. It's not about money management. It's about you being held responsible for something that is not in your control. And yes I know cash is still accepted, duh!

They are charging me NSF's for transaction that never put me in the red and I mean never. I've gotten them back but after spending 30 minutes on the phone. My time is too important to spend on the phone all the time getting fees refunded becuase BoA is trying to screw me and everyone else over.

I'm a big GIRL not boy and I manage my money perfectly.
Posted by madconsumer on 2008-03-19:
gee has it occured to only spend the money you actually have access to?

"Robf you're missing the point. It's not about money management. It's about you being held responsible for something that is not in your control. And yes I know cash is still accepted, duh!"

"I'm a big GIRL not boy and I manage my money perfectly."

if it is not about money management, what could it be? and no you do not manage your money well. if you did, we would not be here right now.
Posted by tnchuck100 on 2008-03-19:
Robf: as jon said, you ARE missing the point.

madconsumer: "and no you do not manage your money well. if you did, we would not be here right now." If you understood the review you certainly would not have made that statement.

The bank is charging NSF fee on holds, no money went anywhere at that point. This IS wrong and it is not the customers fault. Pure, unadulterated corporate GREED!
Posted by Hugh_Jorgen on 2008-03-19:
If there is a hold on the funds, even it it's too much, the bank HAS to assume that full amount is going to be charged against the balance. And that's the point of a hold - to grab the money and hold it until the charge is finalized. If that pushes you into the red, how is that the bank's fault? Blame the merchant that held more than they were entitled to.

The best solution has already been mentioned - get rid of debit cards. I can't see the fascination people have with these things - all we hear about is these types of problems that people keep having - one errant transaction and before you know it you are hundreds of dollars in the hole.

Posted by madconsumer on 2008-03-19:
tnchuck, nsf fees on money onholds means they are spending money that is not available.

if no money went anywhere, then why would the bank charge nfs fees?


i did not miss-understand a word. people need to learn to manage their money.

"BoA has started charging overdraft fees on pending transaction (not posted transaction) when you go into the negative in your available balance."
Posted by jonjaktez on 2008-03-19:
Thank you but I am NOT incurring fees since I DO manage my money.

BoA can't prove that the accounts went into the negative. They will tell you to back step. They will tell you that it takes 3 days for a pending debit card transaction to clear the bank. Well that is not accurate. I've had transaction clear in 1 to 3 days so how is someone suppose to back track?

A pending transaction is not guranteed to post. The banks as well as the consumer knows this. If you spend the money then of course you should not spend what is not there to spend but if you don't spend it but the merchants says you did then you're screwed. How is that ethical?
Posted by grandma005 on 2008-03-19:
That's my point! Stop using debit cards!! Use cash or credit cards. There is no hold with these. Once a week go to Bank - take out enough cash for what you can afford to spend. Put money in envelope and when money is gone then you are finished spending. Period. You do have control this way. You need to watch Dave Ramsey show. Don't let the Bank charge NFS fees on holds to start with. Hugh Jorgen is right. Then don't let the merchant have control over your money. When you let a merchant go into your account you are given them control. Take back your life and stop using debit cards for purchases.
Posted by tnchuck100 on 2008-03-19:
mad, you just don't seem to get it.

"if no money went anywhere, then why would the bank charge nfs fees?" - The issue is they ARE charging the fee. The hold was greater than the actual transaction. Money was NOT spent that was not there.

I don't think any amount of explanation will get through to you.
Posted by madconsumer on 2008-03-19:
i have been with bank of america for many years.

i am 100% postive on how bank of america works with regards to accounts. i suspose it is you that fails to understand.


perhaps i fail to understand why someone will blame the bank on their lack of spend tracking.
Posted by Anonymous on 2008-03-19:
The issue seems to be with merchants holding more than the purchase. The bank is justified in the respect that once that pre-authorization has come in (the pending amount) they are legally obliged to pay the debit when it hits, whether there are funds or not at that time. The sad truth is that if you run your checking balance down low, you probably shouldn't use your debit card, write a check instead. To most people, debit cards are not a good friend.
Posted by Ponie on 2008-03-19:
'...if you don't spend it but the merchants says you did then you're screwed.' OK, I'll agree with that. But why is your complaint against the bank and not the merchant? It's for convoluted situations such as this that I've never used a check/debit card. Instead, I use a credit card for any purchase I can. That way I'm using someone else's money until my CC bill is due. After spending X number of dollars on the card, I get a check mailed to me. I get the better of two worlds--and no overdraft fees.

I agree with grandma and Robf--poor money management!
Posted by grandma005 on 2008-03-19:
Right on Ponie. I just received a check in the mail for $50.00 for using my credit card. And since I get 5 points for every one dollar spent at grocery stores it is easy to get. It is about $25.00 a month in free money for using my credit card every month. No overdraft fees and best of all I get a summary statement from my credit card that tells me exactly how much I spent and what I spent it out on.
Posted by Ponie on 2008-03-19:
grandma, thanks for the reminder. I went to the site and ordered the same for myself. Using your CC for almost all purchases doesn't take long to qualify for another check. I've even charged as little as $1.50 for a couple of candy bars. Only place I use cash is at my friendly Dollar Tree store. But I think they've started accepting CCs also. Will have to check it out the next time I need 3-4 items that because I browse too much, end up costing me $15-$20. :)
Posted by jonjaktez on 2008-03-19:
Let me makes this clear. I'M NOT RACKING UP OVERDRAFT FEES. I MANAGE MY MONEY!!!!!! This is stickly about the policy!

I have an issue with the policy because the bank (whatever bank) is going to screw over the customer when it's not the customers fault. This is just a bad policy. BoA cannot prove that the customer was overdrawn in bank...red flag...how can the customer prove that their account wasnt overdrawn? BoA is going to make the customer pay for merchant's mistakes...red flag. BoA is going to make the customer pay fees for an amount that the customer didn't actually spend...red flag. A bank card can be a good thing if you manage your money and I manage my money.

Let me make this clear again since people aren't reading the posts but making judgements on me, I'M NOT RACKING UP OVERDRAFT FEES. I MANAGE MY MONEY!!!!!!
Posted by grandma005 on 2008-03-19:
Everyone else is not saying that you are a poor money manager. What we are saying is to stop using your debit card. Don't let the Bank or merchants have control of your money. Don't allow the merchants mistake to become your mistake. If the merchant makes a mistake on your credit card you have the credit card to fight for you. The Bank does not care. They love NSF fees regardless of who made the mistake. It is money in their pocket and out of your pocket. You just don't get what everybody is trying to tell you. If you don't want advise then don't ask.
Posted by jonjaktez on 2008-03-19:
I was never asking for advice. I posted information. But when most of the people here are saying "poor money management", I take it as they are saying I have poor management skills. If I'm wrong then I'm sorry but that's how I read it and it seems other did too.
Posted by kicka on 2008-03-31:
I have a good idea jonjaktez....lets take our money to a different bank like Wachovia who processes their accounts like BOA used to...I've been with BOA for 20 years and its time to move on.
Posted by speedy relief on 2008-06-23:
Jon
I agree completly with all you've said. I too have had the very same "experience" with BOA.....I had money in my account over the past weekend, and the bank, in all it's stupidity paid all purchaes in DECENDING ORDER (BOA pays this way in order to get funds to overdraft). I made several DEBIT purchases using my card (they tell me the money is on hold when it's done this way) what a bunch of you know what that is. BOA charged me fees PRIOR to posting just like they did to you.
Posted by PolishGirl on 2008-07-07:
Simple answer, don't spend what you don't have. Since debit card purchase immediantely deduct the amount you use, it will effect the transactions that will post to the account that night. Suppose you had $200 in your account, and you have 5 tranactions totalling $50 that will post that that night. Because you possibly spend lets say 210 on a large item, that item will take up to 3 business days to post to the account. Since those funs are on reserve for that purchase, those funds cannot be used for other items, hence you have no more funds available for your purchase that will post that night, therefore incuring overdraft fees. Isn't that a shame. I tell people this all of the time, and they still don't get it in their heads. The purchases are pending in the order that they are made and post in the order of highest to lowest when the merchant finally turns into the bank the final electronic draft. The Bank doesn't decide when the item posts to the account, the merchant does. It is the customers responsibility to maintain his or her account. I tell people this everyday, all that they can say is that they still don't understand, there is nothing difficult about this.
Posted by LuLuW-L on 2008-08-20:
What I find frustrating is when, over a weekend you deposit a check and then make several purchases and have several "pending" transactions that are more than covered by this check, but are charged overdraft fees because Bank of America doesn't recognize your check until the next business day. To me that is dishonest. They can recognize pending transactions over a weekend from say a debit transaction, but they can't recognize my "pending" deposit that more than covers ALL my fees. How is that bad money management on my part? I think it is the bank being sneaky and dishonest.
Posted by Freistco on 2008-09-12:
I recommend removing your funds from BoA and put them into a "not for profit credit union". That's what I did when I finally had enough of being fee'd to death by "Bank of Ameri-Gouge you". They figured out that fees are the only way they can make money from the poor and middle class folk. So for as long as we all keep paying the fees it will only just get worse. The power of the consumer is all power we have...
Posted by james_b8ts on 2008-10-16:
I live in Detroit and ever since I lost my job last March and had to take on two minimum wage jobs to make ends meet, dealing with BOA has been a nightmare. It all started when they bundled 8 $2-dollar transactions and waited as long as possible to post them, leaving a $240 overdraft fee even though I deposted money before they posted. So I cash my next check (sorry, but have to eat!) and check my balance afterward ...what was 200 of underpaid labor turned into $50... This will have to last me for another week, so I figure I can afford mcdonald's right? Something to eat? Wrong! That $7 combo turned out to be $40 because BOA simply wasn't done processing all the old $2-overdraft transactions which were made over a week ago.

BOA is predatory on the poor...the poor who don't have time for overdraft fees when their car payment and insurance is overdue 2 months. I'm not rich enough for use banks right now- so will turn to money orders.
Posted by jonjaktez on 2009-01-28:
BoA class action law suit

http://www.clossonsettlement.com/
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Overdraft Nightmare - One more Customer Lost
Posted by Txjd on 08/14/2006
Bank of America's overdraft policies should be illegal. I have been caught up in their "fees" previously, and I was shocked by how much they charge ($33 per transaction). At that time, I thought I linked all of my accounts so that this would never happen to me again, however, a change to my savings account caused overdraft protection to disappear. Imagine my surprise when $362 in overdraft fees later, I found out that I did not have overdraft protection and there was nothing that Bank of America was willing to do to help. I was charged a $33 overdraft fee for a $7 debit! When I asked why my debit card wasn't cut off considerint that I no longer had money in my account, I was told that it was a "courtesy" to their "best customers" that they covered charges when there was no money left in the account. How is $362 in fees to me a courtesy? Then the customer service supervisor had the nerve to tell me that they don't make any money on overdraft fees. Does that $362 they charged me magically vanish into thin air?

I made an unintentional mistake, and yes, I would have preferred if I went to use my debit card and couldn't because there was no money in the account. Then, I would have known that there was a major problem, and I could have taken steps to correct it rather than having to pay the unbelievably expensive "courtesy" that Bank of America provided.

I am leaving Bank of America after 5 years. Their lack of customer service is appalling. I realize I am not a very important customer to them since I don't have any major investments to make at the moment, but I do have 3 children that are going to need funds for college and I do have a home that is going to need improvements in the future. It would be nice if they understood that the day-to-day customers like me help to keep them in business, too.
     
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Posted by rhondam718732 on 2006-08-14:
We have alot of these posts...$7 or $700 you spent more than you had and expect your bank to "let it go"?
Posted by CrazyRedHead on 2006-08-14:
Sound like to me that someone doesn't know or understand how to balance a checking account. My best advise for this and other letters like this is to get a check register and learn how to not to keep writing when it gets to $0.00.

Regardless of what bank you go to, if you keep writing for what you don't have, this is going to happen no matter where you go.

I hope you learn soon, I have seen entire paychecks go to cover overdraft fees.
Posted by Nohandle on 2006-08-14:
On your monthly statement is there a charge for "overdraft protection", or did you think this was free? Would you have preferred the bank send back your checks with "insufficient funds" stamped in big red letters on the front? If so, you would have been dealing with calling all those people trying to come up with a reasonable explanation and paying the fee to boot.

Re-read Rhondam and CrazyRedHead's response to you. Theirs is the best advice you will get here and it didn't cost you a dime.
Posted by tander on 2006-08-14:
That's how banks make there money, why should they cover your overdraft fees?
Posted by Anonymous on 2006-08-14:
txjd I 100% agree.. These charges are getting ridiculous. Even more bizarre is the sheeple swallowing this corporate manure with a 'umm umm tasty'. Hey, I say raise the overcharge fees to 10,000 per whack. If 39 or 49 is good than ten grand would be the bestest awesome'est greatest thing of all time.
Posted by rah332 on 2006-08-14:
??? if they charged $33 for a $7 debit, how does it add up to $362. washington mutual does the same thing, except they charge $25 per transaction for insuffient funds. They will let you make withdrawals and purchases without having funds. They will let you total up to $1000 in tranactions b4 they put a stop on your acct. plus adding up the $25 per boo boo... banks suck....
Posted by pataylo196 on 2006-08-27:
I had $160 in my account, I had 5 debits come through on the same business day ...$133, $20, $8, $5, $3. They all went through in that order too...now why do you suppose that they ALWAYS put the largest debit through first? Then the second largest and so on...Well, of course so that they can drain your bank account so that when the $8, $5 and $3 went through they could collect their big fat $33 fee for EACH of those 3 transactions (total of almost $100)...instead of putting those small ones through first and then having ONE overdraft fee for $133. Their should be a law against that. I feel no different then if someone had stuck a gun in my ribs and stole that $66 from me.
Posted by madaboutbank on 2006-08-28:
To rhondam, RedHead, and nohandle. Yes, we all know txjd made the mistake with his overdrafts. And yes, he should have kept a close watch on his own register. You know what, anybody could have made that mistake. The point is, how is it legal for BoA to charge up to $35.00 against a $7.00 overdraft, or even smaller amount (they hit me once against a $1.09 overdraft!) And how is it a "courtesy" to "advance" funds on an already minus account so to create overdrafts situation that they can then charge fees later on? This is equivalent in getting a loan with high interest charges from a "Loan Shark". There should be a law against such practice! Come to think of it, BoA is a LOAN SHARK! Lets not dwell on someone misfortune. Rather, lets concentrate on how we can make these banks stop ripping their customer's hard earned money!!!
Posted by evagoblin on 2006-08-29:
See my comments from Wikipedia printed on thread Crooks! Overdraft (etc.)
Posted by taviles on 2006-08-29:
I agree with mad, my response to all who have a BOFA account is to close it and go with a smaller bank. Most large banks have lost the customer service part of the business. Bad business practice, bad customer service and so forth have mad these bank almost impossible to deal with. I canceled my account and I strongly suggest to all current BOFA customers to do so as well. Take my word, you may not have a problem now but watch what will happen when you do. They simply do not care.
Posted by Nohandle on 2006-08-29:

madaboutbank, I for one am not dwelling on someone's misfortune and appreciate txjd's informative post. Banks for years have charged for overdrafts, even $1.00, but in addition sent the check back to the business with "insufficient funds" stamped on the check. The business then called the customer about the "bad check" and the customer had to come back with cash in hand. How embarrassing could that be?

Some people may not be aware a new policy with many banks on an "insufficient funds" check is to also charge the company that accepted the check, in my area $25.00. Yes, the banks are charging a fee to the account holder plus the merchant who accepted the check. Double Dipping I believe it's called.

It doesn't matter if your check was for $1.00 or $100.00, when the account reaches a zero balance the overdraft fees kick in for every transaction. It is my understanding overdraft protection is quite pricey and the account holder is still charged a fee (somewhat smaller) for every "insufficent funds" check written. For those who have problems keeping track of your account balance, perhaps the overdraft protection would be your cheaper option.
Posted by sre on 2006-09-22:
This exact same story has happened to me. i am a single parent of three and can't afford the extra fees they charge, despite my meticulous book keeping. I can't keep my register up to date with BOA because they constantly find a reason to charge me some ISF fee. I am now in the negative over $200 just for those blasted $35 fees all because of a $5.00 gas charge! They said it was in my account I needed gas and now I will pay for it. Something should be done about this. I feel scammed somehow, despite recording in a register and checking on-line practically everyday. If there is a class action lawsuite, I want in on the complaints. it's killing me.
Posted by Kronenberg on 2006-09-26:
This is why I love my bank, First Federal. I normally keep good track of my funds, but one month I had someone write me a bad check, in the same month I had a company automatically withdraw a payment from my account when I had previously cancelled their service, this all happened at once and I would not have noticed for a little while but my bank put a hold on my debit card and I noticed there was a problem when I couldn't buy my groceries using it. I used my credit card instead until I could get home and find out what was going on by checking my account online.

Posted by luvchubs on 2008-04-02:
If you guys had thoroughly read his post, you'd know that he said he linked all his accounts so this wouldn't happen. However, something changed in his B of A savings account and caused his overdraft protection to disappear. As for the overdraft protection, my accout with B of A doesn't charge, all the accounts are just linked together. So, nohandle - of course he wouldn't notice if he was no longer being charged, because there wasn't a charge to begin with! People who don't know what they're talking about annoy me.
Posted by Overdraft fees - that's too much!!!!!! on 2009-09-11:
Bank of America: The worst bank in the US.
Posted by FloridaLizardQueen on 2011-06-17:
I once closed a checking account with BOA because it had no money in there, and then then next month I had a monthly maintenance fee of $5.95 because there was no money in the account and I didn't have direct deposit on that account. Now remember, this account was supposed to be closed, and I had paperwork proving it WAS closed!
Posted by MRM on 2011-06-17:
Hey Hey, LizardQueen... long time, no see!
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Wrongfully charged overdraft fees
Posted by Mp1985 on 05/15/2006
PHOENIX, ARIZONA -- I was a Bank Of America customer for 15 years. I had a Checking account and VISA Credit Card with BofA. I had overdraft protection on my VISA. When I opened up a Savings account with BofA, they asked me if I wanted to use my Savings account for overdraft protection. Of course, I said yes. I had an overdraft on my checking, but wasn't worried because I had overdraft protection on my VISA and my Savings account. Funds were not available to cover the overdraft from my Savings, but I had plenty of available credit on my VISA. They still charged me $120 in overdraft fees. When I called, they said I did not have overdraft protection on my VISA. They said when I opened my Savings account, that removed overdraft protection with my VISA. Even though the miscommunication was on the part of BofA, they refused to reverse the charges. I wrote a complaint to the BBB, and closed out all my accounts and switched to U.S. Bank, where I even refinanced my home with. I hope the $120 they stole from me was worth my business.
     
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Posted by tander on 2006-05-16:
I'm sure they care! Seems that BOA has made quite the name for themselves!
Posted by Discoverhater on 2006-05-16:
You can have as many overdraft protection accounts as you want to have. You setup a primary and then a secondary and it can be done. Beware that banks and credit card companies are getting greedy and money hungry so they will tell you anything to steal your money and keep you ignorant. They will intentionally remove any "flag rules" from your account and/or tell you that they "do not see that noted on your account" when it really is there. Examples of "flag rules" include: 1) To not approve charges which will take over credit limit on card, 2) Secondary overdraft account if funds are not avilable on first account and 3) Do not pay any NSF items. Return them because usually electronic ACH items are not charged an overdraft fee, only actual paperchecks.

Moral to the story - Do not believe anything B of A tells you. They are getting bigger and bigger each day as they acquire more banks and they are money hungry and will do anything or tell you anything in order to make themselves money.
Posted by Ponie on 2006-05-16:
Hey, Discoverhater! Do you work for a living, or did you inherit a huge trust fund? To say: 'they are money hungry'--isn't that a little over the top? Do you know at least one person (aside from Mother Theresa) who doesn't want to make money? Just because you don't know how to properly handle your $$$, don't condemn the companies who are out to make a buck. I think that's what's called 'capitlism', isn't it? (And don't forget to read the fine print.)
Posted by Anonymous on 2006-05-16:
I agree.. they are money hungry corporate sharks intent on bringing back serfdom and monarchies. I’m not saying I disagree; all depends where in aristocracy I fall. Bad Karma points for using BoA and Mother Theresa in the same post which I just did..D’oh
Posted by Discoverhater on 2006-05-17:
Ponie, per your post -----
(1) “Do you work for a living, or did you inherit a huge trust fund?” Yes, I do work and earn my money just like everyone else.

(2) “To say: 'they are money hungry'--isn't that a little over the top?” No it is not because the banks are greedy and money hungry. You obviously do not follow the markets or seem to have much knowledge of the financial markets and investing. The banks have earnings targets to meet and they are going to do what ever they can to meet those short-term objectives even if in the end, it kills them or they loose customers.

(3) “Do you know at least one person (aside from Mother Theresa) who doesn't want to make money?” I do. Priests, nuns, investors who don't want to report capital gains in the current year for tax ppurposes, missionaires, retirees on social security who would have to report their social security as income because they made too much income and people who volunteer for charity and social services. I could go on with my list but will stop.

(4) “Just because you don't know how to properly handle your $$$, don't condemn the companies who are out to make a buck.” How do you know I do not know how to handle my money? Let us compare balance sheets and see who has last laugh. There is also a difference between making money ethically and legally verses illegally, fraudulently and/or unethically. Enron is a classic example and so are all the Savings and Loan Failures from the 1980's decade.
(5) “I think that's what's called 'capitalism', isn't it?” Do you mean capitalism? Karl Marx defined ``Capitalism´´ as the private ownership of means of production, as opposed to government ownership of those means of production. The key concepts of capitalism are private ownership and free market. The credit card companies are abusing the “free market” concept and gouging the consumer with the “invisible hand of economics”, as Economist Adam Smith called it back in the 1700’s, because of their own self-interest. The credit card industry is becoming an anarchy because the cardholder does not get to engage in trade that occurs because of agreement between buyers and sellers, which is the basis of capitalism.

(6) “(And don't forget to read the fine print.)” And the relevance is?
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Bank of America is a scam!
Posted by Songbird7779311 on 01/22/2010
Bank of America is the biggest scam ever. I made 3 purchases and the were pending and taken from the balance. I had a bigger check come in and there was not enough funds to cover it. Do you know that they paid the big one first and then charged me 35.00 then charged me 35.00 three more times for the debts that were pending earlier and there was money for it. They ended up charging me 140.00. I asked them why didn't they paid the smaller charges first and then pay the bigger amount? The lady gave me some lame explanation. In other words, instead of paying the smaller debts which there was money for, they rather scam me and pay the bigger one so the smaller ones will bounce too. If you are looking for a bank Bank of America is not the one. They took government money and they want to take your money too.
     
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Posted by Anonymous on 2010-01-22:
So, things like that don't happen again... don't spend the money until that check comes through. More and more, banks take the largest out before the smallest. It may be a lame answer, but it's the answer they're trained to give... whether you like it or not. If you decide to pull your money from BoA, whatever bank you go to; you need to ask them (if it's not in the paperwork) how they order the transactions.
In any case, it shouldn't matter how things come out or reordered. Had you written down the check in your register, you would have seen that you wouldn't have had the money for those purchases or maybe enough money for one purchase. You wouldn't have overdrawn your account. Best take care of the negative status. Because in 5 days time, you're going to get hit with another fee for your account being in the negatives.

"They took government money."

For the record, they gave it back.
Posted by MissMae on 2010-01-22:
BOA is a scam, or the fact that you're floating checks is a scam?
Posted by momsey on 2010-01-22:
Since you can't control what order they process payments in, you should wait until you have money in the account before you spend it. Quite an idea, huh? Not spending money you don't have?
Posted by Anonymous on 2010-01-22:
They have a disclaimer that says that they can process transactions in the order which they choose, (of course its to maximize their fees). Ultimately though, you are responsible for spending more than what you had. This is entirely your fault.
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