I have worked at a bank and have held accounts at three banking institutions so I feel I'm fairly reasonable with my expectations. I have always had payroll checks made immediately available, including at People's United Bank. It was under the assumption that the last payroll check I deposited would be made immediately available, that I asked for cash back as part of the transaction. Before anyone wonders why my balance was so low, let me answer that. I had just paid the bills due at that time and since I'm paid biweekly, one of the pay periods cuts it a little close.
I deposited my paycheck and asked for cash back, which required a supervisor override, the first time that has ever happened to me. When I checked my balance, I found out why: the teller did not process my check as immediately available. Furthermore, instead of reducing the amount of the deposit, it was processed as a withdrawal followed by a deposit of the full amount of the check. Neither the teller nor the supervisor who blindly punched in their override disclosed that the check would: 1. be held or, 2. cause a negative balance. This then caused a $34.00 overdraft fee.
Now, I understand that since I deposited a paper check, the bank is not required to make the funds available immediately. However, like I said above, I have never had payroll checks held at this bank and if it was going to be held, I would expect to be notified of that. And that being the case, the teller should have also notified me that a cash back request would cause an overdraft. Not telling the customer is a deceitful practice.
When I asked the bank to review the overdraft fee, the canned response basically told me it was my fault (which I would take responsibility for, if not for the following) and to review my receipt for my balance. In reviewing my receipt, my current balance is positive and my available balance is negative. By the time I can "review the receipt" I am already in an overdraft situation.