Citizens Bank in RI Scamming Customers with Overdraft Fees Complaint - Citizens Bank's SCAM Operation with Overdraft Fees
PROVIDENCE, RHODE ISLAND -- On Monday evening May 18, 2009, while out of town, I knew I had to get to a computer to add funds to my account as I had several small debits coming in. I knew I had enough to cover 12 out of the 13 incoming debits. I unfortunately never got to a computer to transfer funds. BUT, what I did NOT realize until Tuesday morning is that Citizens “practice” of debiting accounts is NOT, as I thought the smaller debits all paid first, or even as they are posted, BUT “intentionally” from LARGEST debit to smallest. Now, when I called Citizens I was given the canned response that Citizens does this to “help the customer pay for their most important payments first”. WOW! Thanks Citizens for knowing so much about ME and what is important to ME! What a nice company, looking out for their customers… And, YOUR WELCOME for the SEVEN overdrafts which you just profited over $270 on.
And get this, on May 19, 2009 my last 8 debits were all under 10$ but of course didn’t clear because Citizens overdraft system was sure to deplete the funds with all the higher debits FIRST. Resulting in SEVEN $39 overdrafts for debits under $10
Now, such a comment from Citizens is of course nonsense and we all know WHY Citizens has “designed” their overdraft system to post HIGH to LOW. At least while inquiring at Bank of America about they overdraft policy they were honest enough to admit the “real agenda” of banks employing this sleazy tactics was to increase their bottom line with overdraft profits.
And, I am sure it has added a nice revenues increase to your bottom line. But, I must say it is quite shameful that this “hidden tactic” is being employed against Citizens customers. I can assure you if most people were asked about this they would have no idea HOW the overdrafts policy works AGAINST Citizens customers. Unless, they get to read about such a scandalous experience it is pretty much a hidden policy. I am sure it must be buried in the checking account terms and condition in the 3pt font, somewhere on page 5.
And, to top it off before I knew what happened I charged $6.80 for Chinese food, but with Citizens $273 overdraft charges I was as a result $208 negative (because they charged my account and THEY made my account negative), they charged me ANOTHER $39 overdraft fee. Which would have cleared had they not charged my account $273.
The scary issue here is probably 90% of Citizen Bank customers (and other Bank’s customers) are unaware of the details of these seedy overdraft tactics.
I may have to bite the bullet and lose over $300, while I take time to move all my personal business accounts to a more reputable, respectable bank. But as Congress is just now debating the unethical fees being charged by credit card companies, I will do my part to make sure they are aware of, and hopefully also address these unethical “overdraft” practices. Is it illegal? Surprisingly no. Is it disgraceful, immoral, and shameful? Unquestionably!
The days of personal relationships with your banker are OVER. It's just a computer program ready and waiting to suck your account dry with the slightest opportunity.