Bank overdraft fees plaguing young adults on clarkhoward.com

Sometimes it seems like young people have a huge bull's eye on their backs for the banks. People who are between the ages of 18 and 24 are being killed with bank overdraft fees. The latest stats say they're paying more than one billion dollars in overdraft fees every year. Clark recently heard from someone who has a teen that overdrew a debit account by $15 and that generated $80 in fees. As a parent, it's getting more and more difficult to teach the young about money. But it must be done. When Clark was in school, you paid for things with cash. Today there's no equivalent in a credit-crazy world. While cash is finite, plastic is infinite. A parent's most important lesson to a son or daughter should involve a pen and a check register -- showing them how to take debit transactions seriously. Banks are only too happy to approve transactions that will result in overdrawn accounts and high fees.

There's a bill in Congress that's trying to make it so that a bank must contact you for approval before they overdraw your account. The banks, predictably, are incensed about this because they may lose profit. Clark loves it when people have more info to make smart (or dumb) choices. What happened to ethics and morality in the banking world? Why do bankers get up in the morning and try to figure out how to rip off fellow Americans? If a bank approves an overdrawn transaction that generates fees, how is that moral or ethical?? It's not. The bill will probably be killed because the bankers are so strong giving dirty money to politicians. So teach your children well and you'll save them from losing money in the school of hard knocks.

What others are saying

Chase is a Corporate Monster!
Let me begin by saying that I am an adult that has returned to college to expand my education. Being a student creates a LOT of financial stress, to say the least-
I was a very happy Wamu banking customer until the fallout of the economy and the deplorable takeover of JP Chase Banks. I don't know how many others have endured similar fallout from the transition, but this bank is ridiculous!!! I have so many examples, that I cannot even put them all in one comment area. They have charged me $15.00fees EACH time that I am paid from my International employer- let me elaborate- I freelance for various companies, one company is based outside of the U.S. and wires my paycheck using a JP Chase Banking account via Wells Fargo. Previously, with Wamu- I had explained my situation of employment and they waived my transfer fees (which, were $10). Chase bank continually and deliberately preys upon those less fortunate by manipulating customers' debit times and deposit times to suit their greedy needs. I had a 35cent overdraft that eventually cost over $54.00 and some change by the end of it. I am changing banks today.
The worst part of all?? My 2 credit cards were both previously owned by Wamu Banks, and they immediately raised my interest rates, and recently sent a letter stating the change of interest rates to reflect something in the 23% range as of Jan. 2010??? I have never been late with payments- Instead of seeing an end to my debt payoffs, I am now looking straight in the eyes of a full-blown debt problem. Thank you, Chase. Thank you for bailing Wamu Bank out in it's time of need and making it's customers pay dearly for it. There goes my credit score.....
I hate you-
By Concerned student @ 11/03/09 03:26:10 PMreport abuse
SUNTRUST Fraudulent Overdraft Fees
I have (SunTrust) documents that show that SunTrust engages in wire fraud by manipulating the dates of debits and credits so as to create overdraft conditions, mainly by changing the dates of presentation of floats, thereby circumventing its terms and aconditions that promise posting of credits before debits. I am about to file a lawsuit and will put the evidence on YouTube come approx. October 10, 2009.
By bvongrabe @ 09/30/09 03:49:21 PMreport abuse
overdraft rape
My bank is SO kind! They have been "protecting me" by charging me $35 every time I run out of money. Instead of allowing a merchant to decline my debit card, they "protect me" (from what I'm still not sure) by saying "you used your card to buy a $2 sandwich at Joe's Sandwich shop - You now owe us $37 bucks". This is QUITE A SERVICE! I'm so glad I have "protection" like this. I won't mention the bank name - but they have branches in various REGIONS throughout the southeast. If you encounter a bank like this in your REGION, you'll find that if you ask to please drop the overdraft "protection", they'll refuse to stop "protecting you". Talk about loyalty!!
Many others have experienced such kindness, and I certainly hope we all can return the favor one day.... like maybe a class action lawsuit?
By bob @ 09/16/09 05:15:53 PMreport abuse
Fees
BOA recently charged me $350.00 in fees on pending items, in one of my accounts i have with them, I am fighting it because the money was there, but they have added on another page on line where you go to view your avaliable balance history, that I was completely unaware of, this page is where they tried to explain the issues, even if I was aware of this page, it is so hard to read you wont be able to keep any account. I cant believe the tactics they use to get money from people,but I am a fighter and I want all my fees refunded!!!!!!!!
By Wilma B @ 08/26/09 01:34:00 PMreport abuse
Bank of America
I have the same problem with BOA charging me $315 in NSF fees for items "pending" on my account that were posted AFTER the deposit was posted! It's unbelievable that they can get away with charging these fees for items that are "pending" and not posted to an account. When looking at the statement there is NO negative balance until after the $315 fees are posted. We have been customers of BOA for over 25 years, with both personal and business checking and savings accounts. Changing banks sounds like a nightmare, but when the bank rep told me "sorry I can't help you, but the policy may change because so many people are unhappy", I can't continue to let them make money off of me! I have heard friends and collegues complain about BOA and their outrageous fees, but I've always had a great experience with them.

I remember if you had insufficient funds in your account, they wouldn't let you use your debit card! What happened to that policy? Oh, they can make money off of us!!! Grrrrr!
By Lisa N. @ 08/05/09 12:59:00 PMreport abuse
SunTrust
At a fuel stop in Central Georgia, I felt sorry for a young lady who needed gas, but had forgotten her debit card. The station would not accept her check, so I had her write me one and I paid for her gas ($20). She told me she worked for the SunTrust processing center in Stockbridge. When I called my SunTrust branch to make sure the check was good, the branch manager told me it would not clear. Now I'm not blaming SunTrust for my decision to take a stranger's check. What I am blaming them for is their defending the person to the extent that they are allowing her to run around with an open checking account carrying a minimum balance, writing checks that won't clear, and costing merchants NSF fees. SunTrust should close her account immediately, then any checks she writes will be subject to criminal prosecution. SunTrust is letting her hide behind their cloak with what would otherwise be a criminal act. SunTrust share price has gone for over $90 to under $10. There is a reason for this, and it can't all be blamed on "toxic assets." Some of it is toxic customer relations.
By Ron Anderson @ 03/31/09 09:34:52 PMreport abuse
Amcore
Amcore bank held a direct deposit for 2 days after my stub says it was deposited. Causing me $280+ in overdraft fees.
By Guestowel @ 02/20/09 02:36:52 PMreport abuse
The essential part of having a bank overdraft of the a certain bank they have a wrong record or an erroneous record they had to be sometimes, due to the economic condition that the brakrupcy they had that why they have an overdraft charge of the other accounts that sometimes when the auiditor they had an audit they will have an errounous error for that, that could be lead on the bad record of the bank as well their reputation to be a good bank to invested then. Read more about the erroneous effort to get rid of payday loans.
By Miles I. @ 02/02/09 05:59:22 AMreport abuse
Associated bank
Associated has changed some of their practices over the last several months. If you use your debit card at night and deposit the money to cover the debit after 2, they will charge you OD fees even though the debit has not been presented. Theey charge a fee each day that you do not have funds in the account. When I called about this practice, they told me I should be looking at my account daily. They also used to not issue online payments if there were no funds to cover, now they send them all out to collect the fees. I am looking for a new bank and will probably just start using my credit union as my primary.
By nomad @ 02/01/09 12:54:24 PMreport abuse
Overdaft fees
Anyone reading this blog please please please don't ever bank with Suntrust bank. They do the same thing BOA does, they will take out their fee before your debit comes out of your account so they too can STEAL your hard earned money. I have talked to three different people from the branch manager to her district boss and still got now where. My online bank shows exactly what i am talking about but two different screens in there system show two different things. so all in all i have three different reports on how my money came out of my account and no one that works in Suntrust can explain to me what happened. They are not willing to refund the fees at all. and the really messed up thing about it is once i got to the branch manger she said out of her own mouth "Yea the online banking is misleading to our customers." what kind of mess is that. so to end the long drama story i closed the account and will move back to a credit union instead. at least they are understanding when they mess up. LOL
BEWARE OF SUNTRUST DON'T TRUST THEM AT ALL!!!!!!!!!!!!!!!!!!
By lilchris @ 12/31/08 09:27:25 PMreport abuse
Wachovia and overdraft fees
Today I was hit with 2 overdraft fees before my account was actually negative. On my statement I printed out from the computer you can clearly see that the overdraft fees are deducted before the transaction that supposedly made my account negative which is still "processing" My cash deposit which would have prevented my account from going negative is also "processing". At 3pm on 12-17-08 I had .o4 in my account at 3:06pm I made a cash deposit of 46.00 also processing for that day is a refund credit of $13.35 at 9pm that same night a echeck for 30.73 is made which incidentally is also still "processing". I have argued with Wachovia until I was blue in the face finally at one of the branch offices they refunded me one overdraft charge because clearly when he tried to show me why even he came out with my checking account in a positive balance and would have given me both charges had his system allowed him too. I closed my roth account and will transfer the money to my other account with Suntrust whom I highly recommend I never have any problems with them pulling stunts like this. If I didn't need this wachovia account in order for my husband who works out of town to make deposits for me I would have closed my checking account today also. They are just live Bank of America, I had the same account for years first with Herritage Bank who was bought out by bank south who was bought out by Nations Bank who was bought out by Bank of America and whom I finally got so disqusted with for pulling the same con I closed my account. I can't believe this is legal for them to do this. Its unbelievable that they can hold a cash in deposit for until the next day and then charge you overdraft fees before your account even shows a negative balace. From the statement I printed you can clearly see that the overdraft charges caused the negative balance but obviously they keep getting away with this by the looks of the other postings I see on this site.
By upbuki @ 12/18/08 07:46:59 PMreport abuse
BOA fees
The banking industry sits up at night trying to think of ways they can steal money from people who are actually not trying to float, but just get caught up in the bank's way of processing. I recently made a deposit to my account for $2,500 at the window. I was able to get $75 cash from the Atm later & do an online payment transaction of $228 around 10 p.m. The next morning I see the deposit had posted, but, they withdrew $169 in savings to cover an overdraft for those items before it posted overnight. The savings wasn't sufficent to cover both, so rather than pay the smaller & charge only one item, they applied it to the larger amount first, then charged me a $35 fee for both transactions as well as a $10 fee to transfer the money that didn't help. I was also charged for going below the minimun in my savings account. Total: $105 in fees. My point when speaking to the customer service rep was that if I made a deposit at the window at 5 p.m. why was I in an overdraft status for transactions made hours later? If the funds were going to be processed overnight, then I should have been declined the opportunity to use them, or been warned that doing so would over draw the account. I told the rep that I had made deposits before & withdrew money immediately with no charge & she explained that if it was done at the ATm it would have been credited right away, but not through the window. HUH ? Where do they make these rules & how I am I supposed to know the difference in the posting timing from window to ATM? Should we have to read our policy manual over dinner each night to fully absorb it? Even that wouldn't do any good as the policy seems to change as soon as you learn it.

Is there a bank that doesn't play a game of switching coconuts that we can trust our money to, or do we need to hide it under the mattress?

I am voting with my feet after 25 years as a BOA customer. Too bad they see that $105 as more valuable than a customer....
By Beth @ 11/19/08 11:24:58 AMreport abuse
WACHOVIA is just as dirty!
Yes, indeedy, the big banks (WACHOVIA) are out to rape and pillage! My daughter (age 17) was just slammed with $189 in OD fees for the same reason that other responders here were. The difference in my case is that I caught the mess at the $66 point, Called the bank (WACHOVIA), asked how much I needed to transfer to her account to stop the bleeding, was told that $50 would cover it. I transferred the $50 to her account before even getting off the phone with the bank (WACHOVIA) rep ~ he assured me that would be the end of it. Well, let me tell you, that was NOT the end! The bank (WACHOVIA) rather craftily applied pending debits to the account BEFORE crediting my transfer incurring another $120+ in fees. I was shocked, furious. Called the bank again, was stonewalled...sorry, there's "nothing we can do". Visited my local branch (WACHOVIA). Got a "courtesy" $35 refund, but no one would address the fact that I had followed the first bank rep's instructions to the letter and still gotten screwed. And this after I have been a customer of WACHOVIA for fifteen years. Betcha the whole thing would not have happened if I had tens of thousands of dollars in my account. Those of us who earn average incomes are so lost in this economy... You're right, Clark. Ethics, morality are dead ideals in today's business world. Shame on them all!
By Val @ 09/19/08 01:41:00 PMreport abuse
BofA
I will be closing all my BofA accounts because I cannot afford my "free checking" any longer! I am in the same boat as the two other BofA customers below with an 18 year old son. When I call to ask why he's allowed to withdraw money when there is none in his account I'm told it's a courtesy. I requested they stop doing my any more "favors" but they say they cannot do this. They finagle the times of deposits and charges to maximize their fees. In the past week I have been hit with four overdraft fees for a total of $140. I'm so done with them and will look into a pre-paid visa for my son to use at college.
By Marie @ 09/01/08 04:22:31 PMreport abuse
WaMu Overdraft Protection or is it?
After my account was overdrawn by $1600 with over 27 transactions in a 2 week period, I questioned myself, how the he** does this happen? Frustrated, I wanted answers. I called WaMu and asked them about their overdraft protection plans. They have three kinds. One is given to the customer after banking with them for a period of time, as a thank you for being our customer. It covers between $100-1000 and requires no contract. The second is a line of credit at the cost of $36/year and customer accrues no overdraft fees. The third, is a transaction service that pulls funds out of your savings acount to cover insuficient funds, at a fee of $10/ transaction. I then asked her what would happen if I did not have any overdraft protection on my account? She said, your check would bounce and you would have to pay overdraft fee + whatever fees are associated with the purchase, and debit transactions would decline the charge and they would not go through. So this leaves me picking my brain, how exactly is this protection? I know I am not the only one who has experienced this. Choosing what bank to do business with is a pain, and just not banking with them is one course of action. But in reality, if this type criminal(usery laws) activity continues within one establishment, the the rest will follow suit. Take it to the next level, file complaints with your congressmen, better business bureau, even write the newspapers. You as a citizen have an obligation to yourself and your fellow citizens to be treated fairly and not allow the big wigs of corporate America control your livelyhood once it is earned. Just as James Otis collaborated with the sentiments of Baron Montesqeue, those who everyday barter the liberty of others, soon care little for their own. These bankers care nothing for their liberty, so why should we assume they care for ours. They count on our complacency, and that is how they have the power!
By amber @ 07/10/08 11:23:05 AMreport abuse
Overdraft Fees
Recently I discovered that BOA has begin hitting anyone in pending status overdraft fees when there is the potentially to be over drawn. This is a sign that the banking industry has taken a spiral down hill. It wasn't until recently that I was in this position. BOA used to not do that and if you made your cash deposit before the pending transactions posted you wouldn't be charged. Well those days are over and the public is now again a victim. Yes, your right, we should only spend what you have available - well they know how to post and unpost your debits and catch you close to your balance margin. Besides the way they posted / credit your account is not easy to follow. I recently printed my statement three days in a row and would you believe transactions were showing up and disappearing. It looked like they would post them one day and if a deposit came in over night, they would back them out and post the deposit and move forward. Well to my suprise, I was hit with several charges that way. I am truly frustated with our banking industry!
By Frustated @ 05/27/08 10:21:16 AMreport abuse
Bank of America - Overdraft fees
This article reflects my daughter's week, who is a student in another state. She deposited a $70+ check from her employer, not realizing it was 1-2 weeks over 6 months old. (Must have been held at the Corporate office and mailed late; she deposited immediately upon receipt) Over a week later, she received notice that the check was returned and she was charged $80 in fees. She had already deposited her regular paycheck, which was subject to the usual hold by the bank :o/ She spoke to someone, who waived one of the fees only. Additional transactions between the date of the notice and the paycheck clearing incurred another $90 in fees. $170 in fees for a $70 check error? I've suggested she speak to her employer to get the $70 check re-issued, and to provide them documentation of the resultant fees in an attempt to recover at least part of it from them, but that would be iffy at best.
Obviously, she has learned that checks over 6 months old cannot be deposited, but, what recourse is there for her? WHY IN THE WORLD DOES BANK OF AMERICA ALLOW DEBIT TRANSACTIONS WHILE AN ACCOUNT IS IN DEFAULT?!?! Shouldn't the card be refused? Clearly this benefits the banking industry, especially with young people who do not have extra $$ to pad their accounts. It's disgusting!
By Denise @ 04/15/08 06:03:30 PMreport abuse

Chase is a Corporate Monster!

Let me begin by saying that I am an adult that has returned to college to expand my education. Being a student creates a LOT of financial stress, to say the least-
I was a very happy Wamu banking customer until the fallout of the economy and the deplorable takeover of JP Chase Banks. I don't know how many others have endured similar fallout from the transition, but this bank is ridiculous!!! I have so many examples, that I cannot even put them all in one comment area. They have charged me $15.00fees EACH time that I am paid from my International employer- let me elaborate- I freelance for various companies, one company is based outside of the U.S. and wires my paycheck using a JP Chase Banking account via Wells Fargo. Previously, with Wamu- I had explained my situation of employment and they waived my transfer fees (which, were $10). Chase bank continually and deliberately preys upon those less fortunate by manipulating customers' debit times and deposit times to suit their greedy needs. I had a 35cent overdraft that eventually cost over $54.00 and some change by the end of it. I am changing banks today.
The worst part of all?? My 2 credit cards were both previously owned by Wamu Banks, and they immediately raised my interest rates, and recently sent a letter stating the change of interest rates to reflect something in the 23% range as of Jan. 2010??? I have never been late with payments- Instead of seeing an end to my debt payoffs, I am now looking straight in the eyes of a full-blown debt problem. Thank you, Chase. Thank you for bailing Wamu Bank out in it's time of need and making it's customers pay dearly for it. There goes my credit score.....
I hate you-

By Concerned student @ 11/03/09 03:26:10 PMreport abuse

SUNTRUST Fraudulent Overdraft Fees

I have (SunTrust) documents that show that SunTrust engages in wire fraud by manipulating the dates of debits and credits so as to create overdraft conditions, mainly by changing the dates of presentation of floats, thereby circumventing its terms and aconditions that promise posting of credits before debits. I am about to file a lawsuit and will put the evidence on YouTube come approx. October 10, 2009.

By bvongrabe @ 09/30/09 03:49:21 PMreport abuse

overdraft rape

My bank is SO kind! They have been "protecting me" by charging me $35 every time I run out of money. Instead of allowing a merchant to decline my debit card, they "protect me" (from what I'm still not sure) by saying "you used your card to buy a $2 sandwich at Joe's Sandwich shop - You now owe us $37 bucks". This is QUITE A SERVICE! I'm so glad I have "protection" like this. I won't mention the bank name - but they have branches in various REGIONS throughout the southeast. If you encounter a bank like this in your REGION, you'll find that if you ask to please drop the overdraft "protection", they'll refuse to stop "protecting you". Talk about loyalty!!
Many others have experienced such kindness, and I certainly hope we all can return the favor one day.... like maybe a class action lawsuit?

By bob @ 09/16/09 05:15:53 PMreport abuse

Fees

BOA recently charged me $350.00 in fees on pending items, in one of my accounts i have with them, I am fighting it because the money was there, but they have added on another page on line where you go to view your avaliable balance history, that I was completely unaware of, this page is where they tried to explain the issues, even if I was aware of this page, it is so hard to read you wont be able to keep any account. I cant believe the tactics they use to get money from people,but I am a fighter and I want all my fees refunded!!!!!!!!

By Wilma B @ 08/26/09 01:34:00 PMreport abuse

Bank of America

I have the same problem with BOA charging me $315 in NSF fees for items "pending" on my account that were posted AFTER the deposit was posted! It's unbelievable that they can get away with charging these fees for items that are "pending" and not posted to an account. When looking at the statement there is NO negative balance until after the $315 fees are posted. We have been customers of BOA for over 25 years, with both personal and business checking and savings accounts. Changing banks sounds like a nightmare, but when the bank rep told me "sorry I can't help you, but the policy may change because so many people are unhappy", I can't continue to let them make money off of me! I have heard friends and collegues complain about BOA and their outrageous fees, but I've always had a great experience with them.

I remember if you had insufficient funds in your account, they wouldn't let you use your debit card! What happened to that policy? Oh, they can make money off of us!!! Grrrrr!

By Lisa N. @ 08/05/09 12:59:00 PMreport abuse

SunTrust

At a fuel stop in Central Georgia, I felt sorry for a young lady who needed gas, but had forgotten her debit card. The station would not accept her check, so I had her write me one and I paid for her gas ($20). She told me she worked for the SunTrust processing center in Stockbridge. When I called my SunTrust branch to make sure the check was good, the branch manager told me it would not clear. Now I'm not blaming SunTrust for my decision to take a stranger's check. What I am blaming them for is their defending the person to the extent that they are allowing her to run around with an open checking account carrying a minimum balance, writing checks that won't clear, and costing merchants NSF fees. SunTrust should close her account immediately, then any checks she writes will be subject to criminal prosecution. SunTrust is letting her hide behind their cloak with what would otherwise be a criminal act. SunTrust share price has gone for over $90 to under $10. There is a reason for this, and it can't all be blamed on "toxic assets." Some of it is toxic customer relations.

By Ron Anderson @ 03/31/09 09:34:52 PMreport abuse

Amcore

Amcore bank held a direct deposit for 2 days after my stub says it was deposited. Causing me $280+ in overdraft fees.

By Guestowel @ 02/20/09 02:36:52 PMreport abuse

The essential part of having a bank overdraft of the a certain bank they have a wrong record or an erroneous record they had to be sometimes, due to the economic condition that the brakrupcy they had that why they have an overdraft charge of the other accounts that sometimes when the auiditor they had an audit they will have an errounous error for that, that could be lead on the bad record of the bank as well their reputation to be a good bank to invested then. Read more about the erroneous effort to get rid of payday loans.

By Miles I. @ 02/02/09 05:59:22 AMreport abuse

Associated bank

Associated has changed some of their practices over the last several months. If you use your debit card at night and deposit the money to cover the debit after 2, they will charge you OD fees even though the debit has not been presented. Theey charge a fee each day that you do not have funds in the account. When I called about this practice, they told me I should be looking at my account daily. They also used to not issue online payments if there were no funds to cover, now they send them all out to collect the fees. I am looking for a new bank and will probably just start using my credit union as my primary.

By nomad @ 02/01/09 12:54:24 PMreport abuse

Overdaft fees

Anyone reading this blog please please please don't ever bank with Suntrust bank. They do the same thing BOA does, they will take out their fee before your debit comes out of your account so they too can STEAL your hard earned money. I have talked to three different people from the branch manager to her district boss and still got now where. My online bank shows exactly what i am talking about but two different screens in there system show two different things. so all in all i have three different reports on how my money came out of my account and no one that works in Suntrust can explain to me what happened. They are not willing to refund the fees at all. and the really messed up thing about it is once i got to the branch manger she said out of her own mouth "Yea the online banking is misleading to our customers." what kind of mess is that. so to end the long drama story i closed the account and will move back to a credit union instead. at least they are understanding when they mess up. LOL
BEWARE OF SUNTRUST DON'T TRUST THEM AT ALL!!!!!!!!!!!!!!!!!!

By lilchris @ 12/31/08 09:27:25 PMreport abuse

Wachovia and overdraft fees

Today I was hit with 2 overdraft fees before my account was actually negative. On my statement I printed out from the computer you can clearly see that the overdraft fees are deducted before the transaction that supposedly made my account negative which is still "processing" My cash deposit which would have prevented my account from going negative is also "processing". At 3pm on 12-17-08 I had .o4 in my account at 3:06pm I made a cash deposit of 46.00 also processing for that day is a refund credit of $13.35 at 9pm that same night a echeck for 30.73 is made which incidentally is also still "processing". I have argued with Wachovia until I was blue in the face finally at one of the branch offices they refunded me one overdraft charge because clearly when he tried to show me why even he came out with my checking account in a positive balance and would have given me both charges had his system allowed him too. I closed my roth account and will transfer the money to my other account with Suntrust whom I highly recommend I never have any problems with them pulling stunts like this. If I didn't need this wachovia account in order for my husband who works out of town to make deposits for me I would have closed my checking account today also. They are just live Bank of America, I had the same account for years first with Herritage Bank who was bought out by bank south who was bought out by Nations Bank who was bought out by Bank of America and whom I finally got so disqusted with for pulling the same con I closed my account. I can't believe this is legal for them to do this. Its unbelievable that they can hold a cash in deposit for until the next day and then charge you overdraft fees before your account even shows a negative balace. From the statement I printed you can clearly see that the overdraft charges caused the negative balance but obviously they keep getting away with this by the looks of the other postings I see on this site.

By upbuki @ 12/18/08 07:46:59 PMreport abuse

BOA fees

The banking industry sits up at night trying to think of ways they can steal money from people who are actually not trying to float, but just get caught up in the bank's way of processing. I recently made a deposit to my account for $2,500 at the window. I was able to get $75 cash from the Atm later & do an online payment transaction of $228 around 10 p.m. The next morning I see the deposit had posted, but, they withdrew $169 in savings to cover an overdraft for those items before it posted overnight. The savings wasn't sufficent to cover both, so rather than pay the smaller & charge only one item, they applied it to the larger amount first, then charged me a $35 fee for both transactions as well as a $10 fee to transfer the money that didn't help. I was also charged for going below the minimun in my savings account. Total: $105 in fees. My point when speaking to the customer service rep was that if I made a deposit at the window at 5 p.m. why was I in an overdraft status for transactions made hours later? If the funds were going to be processed overnight, then I should have been declined the opportunity to use them, or been warned that doing so would over draw the account. I told the rep that I had made deposits before & withdrew money immediately with no charge & she explained that if it was done at the ATm it would have been credited right away, but not through the window. HUH ? Where do they make these rules & how I am I supposed to know the difference in the posting timing from window to ATM? Should we have to read our policy manual over dinner each night to fully absorb it? Even that wouldn't do any good as the policy seems to change as soon as you learn it.

Is there a bank that doesn't play a game of switching coconuts that we can trust our money to, or do we need to hide it under the mattress?

I am voting with my feet after 25 years as a BOA customer. Too bad they see that $105 as more valuable than a customer....

By Beth @ 11/19/08 11:24:58 AMreport abuse

WACHOVIA is just as dirty!

Yes, indeedy, the big banks (WACHOVIA) are out to rape and pillage! My daughter (age 17) was just slammed with $189 in OD fees for the same reason that other responders here were. The difference in my case is that I caught the mess at the $66 point, Called the bank (WACHOVIA), asked how much I needed to transfer to her account to stop the bleeding, was told that $50 would cover it. I transferred the $50 to her account before even getting off the phone with the bank (WACHOVIA) rep ~ he assured me that would be the end of it. Well, let me tell you, that was NOT the end! The bank (WACHOVIA) rather craftily applied pending debits to the account BEFORE crediting my transfer incurring another $120+ in fees. I was shocked, furious. Called the bank again, was stonewalled...sorry, there's "nothing we can do". Visited my local branch (WACHOVIA). Got a "courtesy" $35 refund, but no one would address the fact that I had followed the first bank rep's instructions to the letter and still gotten screwed. And this after I have been a customer of WACHOVIA for fifteen years. Betcha the whole thing would not have happened if I had tens of thousands of dollars in my account. Those of us who earn average incomes are so lost in this economy... You're right, Clark. Ethics, morality are dead ideals in today's business world. Shame on them all!

By Val @ 09/19/08 01:41:00 PMreport abuse

BofA

I will be closing all my BofA accounts because I cannot afford my "free checking" any longer! I am in the same boat as the two other BofA customers below with an 18 year old son. When I call to ask why he's allowed to withdraw money when there is none in his account I'm told it's a courtesy. I requested they stop doing my any more "favors" but they say they cannot do this. They finagle the times of deposits and charges to maximize their fees. In the past week I have been hit with four overdraft fees for a total of $140. I'm so done with them and will look into a pre-paid visa for my son to use at college.

By Marie @ 09/01/08 04:22:31 PMreport abuse

WaMu Overdraft Protection or is it?

After my account was overdrawn by $1600 with over 27 transactions in a 2 week period, I questioned myself, how the he** does this happen? Frustrated, I wanted answers. I called WaMu and asked them about their overdraft protection plans. They have three kinds. One is given to the customer after banking with them for a period of time, as a thank you for being our customer. It covers between $100-1000 and requires no contract. The second is a line of credit at the cost of $36/year and customer accrues no overdraft fees. The third, is a transaction service that pulls funds out of your savings acount to cover insuficient funds, at a fee of $10/ transaction. I then asked her what would happen if I did not have any overdraft protection on my account? She said, your check would bounce and you would have to pay overdraft fee + whatever fees are associated with the purchase, and debit transactions would decline the charge and they would not go through. So this leaves me picking my brain, how exactly is this protection? I know I am not the only one who has experienced this. Choosing what bank to do business with is a pain, and just not banking with them is one course of action. But in reality, if this type criminal(usery laws) activity continues within one establishment, the the rest will follow suit. Take it to the next level, file complaints with your congressmen, better business bureau, even write the newspapers. You as a citizen have an obligation to yourself and your fellow citizens to be treated fairly and not allow the big wigs of corporate America control your livelyhood once it is earned. Just as James Otis collaborated with the sentiments of Baron Montesqeue, those who everyday barter the liberty of others, soon care little for their own. These bankers care nothing for their liberty, so why should we assume they care for ours. They count on our complacency, and that is how they have the power!

By amber @ 07/10/08 11:23:05 AMreport abuse

Overdraft Fees

Recently I discovered that BOA has begin hitting anyone in pending status overdraft fees when there is the potentially to be over drawn. This is a sign that the banking industry has taken a spiral down hill. It wasn't until recently that I was in this position. BOA used to not do that and if you made your cash deposit before the pending transactions posted you wouldn't be charged. Well those days are over and the public is now again a victim. Yes, your right, we should only spend what you have available - well they know how to post and unpost your debits and catch you close to your balance margin. Besides the way they posted / credit your account is not easy to follow. I recently printed my statement three days in a row and would you believe transactions were showing up and disappearing. It looked like they would post them one day and if a deposit came in over night, they would back them out and post the deposit and move forward. Well to my suprise, I was hit with several charges that way. I am truly frustated with our banking industry!

By Frustated @ 05/27/08 10:21:16 AMreport abuse

Bank of America - Overdraft fees

This article reflects my daughter's week, who is a student in another state. She deposited a $70+ check from her employer, not realizing it was 1-2 weeks over 6 months old. (Must have been held at the Corporate office and mailed late; she deposited immediately upon receipt) Over a week later, she received notice that the check was returned and she was charged $80 in fees. She had already deposited her regular paycheck, which was subject to the usual hold by the bank :o/ She spoke to someone, who waived one of the fees only. Additional transactions between the date of the notice and the paycheck clearing incurred another $90 in fees. $170 in fees for a $70 check error? I've suggested she speak to her employer to get the $70 check re-issued, and to provide them documentation of the resultant fees in an attempt to recover at least part of it from them, but that would be iffy at best.
Obviously, she has learned that checks over 6 months old cannot be deposited, but, what recourse is there for her? WHY IN THE WORLD DOES BANK OF AMERICA ALLOW DEBIT TRANSACTIONS WHILE AN ACCOUNT IS IN DEFAULT?!?! Shouldn't the card be refused? Clearly this benefits the banking industry, especially with young people who do not have extra $$ to pad their accounts. It's disgusting!

By Denise @ 04/15/08 06:03:30 PMreport abuse

Listen Live:

Clark On Demand:

Clark's Advice:

Consumer Action Center:

Quick Links:

Clark Media:

Call The Show:

Oct 05, 2007 -- Bank overdraft fees plaguing young adults

What others are saying