First National Bank Complaint - Bank overdraft charges
KILLEEN, TEXAS -- Banks use creative accounting methods to put accounts into the negative on paper. When you get overdrafts against your account and ask the bank about them, the bank goes over your account and usually comes up with the reason behind the overdrafts is that there are holds against your account from charge transactions that haven't cleared yet.
Sound familiar (holds against your account that haven't cleared yet)
How in the world can that be true?
Holds are just arbitrary figures that are out there in cyber space, if they don't get turned into hard transactions they get dropped off. No money changes hands.
But, during that magically 3 to 4 days after you have used your debit card as a charge card you have these magically holds on your account.
The banks computer uses these magically hold amounts, to show you how your account was overdrawn and that was the reason for the overdraft.
Correct me if I'm wrong, but every time you use your debt card for a charge purchase, if you check your account balance you will see it has been lowered to reflect that charge transaction.
How can the bank have a hold against an already adjusted account balance??? How can they use holds against your account to justify overdraft charges, before those holds turn into payments that they send out to someone? Some holds get dropped without the bank ever paying anyone.
I understand how holds should work. You make a charge for $40 the bank subtracts that amount from your available balance and place that $40 into a hold status until the bank pays that merchant his $40 for the purchase that you made.
But, that $40 in the hold status should be a positive amount, all they did was move it from your account balance to a hold status until it gets paid out.
When the bank gets that $40 charge in from the merchant the bank matches that charge with the holds, (money that they moved from your available balance) if they match up, the merchant is paid and the hold gets dropped.
I understand that there (phantom) holds placed against your account from time to time examples (gas purchases, rental cars, hotels, restaurants) some of these places put holds on your funds to check out to see if the account is valid, if they never match up or get paid there dropped off after 3 to 4 days.
But, the banks will overdraft your account for those invalid holds that never get paid, if they happen to put your account in the negative according to their computer.
Holds and reorganizing the debits and credits against your account are some of the creative accounting methods that the banks use to steal money from their customers, the banks steal and our Congress drives the get away car.