Complaint Review: BANK OF AMERICA - BOA

They did the same thing to me....they posted my largest purchase first then posted all of the smaller items after that which caused me to overdraft 15 times!! It may have been 1 overdraft fee if they had posted them in order and I was prepared to handle that. When I called and asked why they did it this way...out of order. I was told. "We think that your larger purchases are probably more significant to you so we try to post them first"....BS!

DISCLAIMER: Yes I work for a bank, but not this one.

I deal everyday with people who have had returned items. However, a checkcard purchase will never be returned unpaid. The reason for this is once the transaction is approved, the merchant is verified the funds. So these will post no matter the balance of the account. But, in the case of checks (electronic & automated included) and automatic debits, these items mat be returned if prsented against a lower available balance. Check for $100, less than $100 available to pay it. The item may be paid as a courtesy, bit once you get your account to '$25 to $100' negative, these items will be returned unpaid. Which will still cause a fee in your bank account and then a fee by the merchant.

It all comes down to keeping an accurate register and not oversoending your account and then you don't have to worry about what order your bank posts in because nothing will overdraw causing fees.

Actually, I read, and fully understand what was written by the OP.
No problem there.

The problem is that there is NO RIPOFF HERE.
Just another case of account mismanagement and wanting someone else to blame.

It is just that simple.

Poor account management = NSF fees. Period.

The order of items presented is totally irrelevent if the money was posted and available at the time the transaction was INITIATED.

These are the facts, like it or not.

And, if I don't know what I am talking about, WHY have I NEVER paid an NSF fee in over 30 years of having checking accounts?

Think about it, and then grow up.



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Submitted: 10/20/2008 8:11:31 AM
Modified: 10/20/2008 11:12:12 AM Highest To Lowest Scam
Fairview, Pennsylvania
U.S.A.

You aren't understanding what the reporter is saying. Read and learn
Bank of America bank, among others, uses the predatory practice of clearing checks 'highest to lowest' first. This creates a huge profit capitalizing on small customer errors.

Example:

Account balance on any given day is $500. Yesterday, you used your bank card for $20 and say $30 and didn't enter the items in your checking account register (an error which I agree you should pay for, after all it is your mistake which will cause the following but it is BOA's greed which will exponentially raise the cost of your error).

At the same time those two debits are clearing a check which you wrote comes through your bank for $475.

BOA now employs the predatory practice of what is called 'highest to lowest'. Here's how it works. By disregarding the order in which the debits are presented BOA formats their internal program to clear the highest presented item first and continue in that order until everything is cleared.

If by random chance the other items comes through first, here is what will happen to your account. Balance $500. Deduction $30 (cleared). New balance $470. Deduction $20 (cleared). New balance $450. Check in the amount of $475 (overdrafted) balance negative $25. Total NSF charges $36.

Here, instead the predatory way BOA calculates the withdrawals, disregarding the order in which they are actually presented but instead re-ordering them in the way most harmful to you and most beneficial to them. Balance $500. Deduction $475. New balance $25. Deduction $30 (overdrafted). New Balance -$5. Deduction $20. New Balance -$25.

So, because of their greedy, anti-customer predatory practices BOA has now manipulated your withdrawals to double the fees you were charged for your error.

If you ask BOA why they did this, they will give you the continued repeated lie every bank involved in this process gives you. We take these out highest to lowest because the highest might be a mortgage and we don't want to ruin your credit or cause you any embarrassment.

BS!

The fact is, if your account is presented with a check for $475 which overdrafts your account $25 there is NO bank in the country which is going to return that check and cause you 'embarrassment' or 'ruin your credit'. NONE!

What makes this deceiving practice all the more detestable is this above stock lie they give you. Banks, wake up! You may be able to continue to lie to each other because you're all out of the same ilk (which is probably why none of you will lend any money to each other and we, the american people, have to go into our pockets to bail out your greedy ignorance) but don't underestimate the intelligence of the average american.

There are those of us that know exactly how you operate and this post is intended to inform even more.


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There were no "hearings" where banks were forced to succumb to presenting checks highest to lowest. If there were, it's simple, show us a reference to them. You can't because your here posting bank propaganda and fear mongering. No, your mortgage won't bounce if your account is overdrafted $25 or even $100. I'm not sure exactly what bank you work for but fearmongering is just another insult. We're not as stupid as you think we are.

Several banks, including most credit unions, present checks lowest to highest or just in the plain random order in which they are received. Are they operating illegally? No, you're just posting pro-bank propoganist BS.

Until there were hearings in Congress where people (voters) complained that the banks bounced their rent payments, and they were evicted, or lost their cars. All because of being short a few bucks....so the banks changed.

Now the shoe is on the other foot because the banking regulations haven't caught up to modern technology, where transactions are both fully electronic and "old-school" with checks that are not sent off right a way but rather in batches nightly. So we have transactions that should post in the order they occur, but actually still post like a check at the end of the day.

Yes, the banks are currently using this as a profit center but there used to be a time that they wouldn't - before direct deposit, so the bank had no idea if someone was going to deposit a paycheck on a regular basis or not!

I expect that the impending regulations will cause the banks to drop the other foot and resume bouncing checks again. But your debit card will work to the last penny! Of course, your rent/mortgage payment will bounce, so you would be homeless, but at least there is only one nsf fee then!

I want those large transactions processed and posted first. I'd be upset if the bank processed my $6 bill at 7-11 and and $12 lunch tab at Olive Garden and left my house payment pending the whole time.

And it is absolutely not predatory because it doesn't matter in which order the bank processes transactions. If there are enough funds to cover all of the purchases, then they all get paid and no fees are charged.

Bank of America bank, among others, uses the predatory practice of clearing checks "highest to lowest" first. This creates a huge profit capitalizing on small customer errors.

Example:

Account balance on any given day is $500. Yesterday, you used your bank card for $20 and say $30 and didn't enter the items in your checking account register (an error which I agree you should pay for, after all it is your mistake which will cause the following but it is BOA's greed which will exponentially raise the cost of your error).

At the same time those two debits are clearing a check which you wrote comes through your bank for $475.

BOA now employs the predatory practice of what is called "highest to lowest". Here's how it works. By disregarding the order in which the debits are presented BOA formats their internal program to clear the highest presented item first and continue in that order until everything is cleared.

If by random chance the other items comes through first, here is what will happen to your account. Balance $500. Deduction $30 (cleared). New balance $470. Deduction $20 (cleared). New balance $450. Check in the amount of $475 (overdrafted) balance negative $25. Total NSF charges $36.

Here, instead the predatory way BOA calculates the withdrawals, disregarding the order in which they are actually presented but instead re-ordering them in the way most harmful to you and most beneficial to them. Balance $500. Deduction $475. New balance $25. Deduction $30 (overdrafted). New Balance -$5. Deduction $20. New Balance -$25.

So, because of their greedy, anti-customer predatory practices BOA has now manipulated your withdrawals to double the fees you were charged for your error.

If you ask BOA why they did this, they will give you the continued repeated lie every bank involved in this process gives you. We take these out highest to lowest because the highest might be a mortgage and we don't want to ruin your credit or cause you any embarrassment.

BS!

The fact is, if your account is presented with a check for $475 which overdrafts your account $25 there is NO bank in the country which is going to return that check and cause you "embarrassment" or "ruin your credit". NONE!

What makes this deceiving practice all the more detestable is this above stock lie they give you. Banks, wake up! You may be able to continue to lie to each other because you're all out of the same ilk (which is probably why none of you will lend any money to each other and we, the american people, have to go into our pockets to bail out your greedy ignorance) but don't underestimate the intelligence of the average american.

There are those of us that know exactly how you operate and this post is intended to inform even more.

I have been with Bank of America for nearly 15 years and have never experienced that.

Furthermore, I can tell you that B of A is way to big to have someone moniter your account to see which transaction they are going to clear!

Transactions post in random order due to several factors. They do not post in the order you make the transactions and do not post according to size. Guaranteed.

Learn how to pay attention to your check register as previously advised and you will not have this problem.

Check # 123??? Is this a new account, or your 1st checking account??

Keep an account register. That way you know exactly what checks and debits you have outstanding and what your current available balance is. When you have reached a zero balance, stop spending.

Read through your account terms and conditions. It not only details the bank's polices of debits but also funds availablity and a host of other transaction policies you may not be aware of.

Being armed with the above information, you should be better able to avoid overdrawing your account and getting charged overdraft fees.

Good luck.