Complaint Review: Bank Of America

Who is ripping off who = I agree that you need to deal in cash from now on because it is obvious you do not know how to balance a checkbook or reconcile your monthly bank statement - YOU drained your accounts and then blame the bank?? Debit cards are not CREDIT cards

Use cash - when you run out well tough (I do and learned how to BUDGET) I am not a bank defender nor do I use this bank I just learned a BIG lesson when I got into money problems

from infancy. Think about it, over 50% of marriages in the USA end in divorce, correct? And that doesn't mean that the others are 'happily married', right? Most children in America are conditioned into believing lies from the very start. Example: 'Santa Claus', 'Easter Bunny', the 'Tooth Fairy', etc. Then we're led to believe that we grow-up, get an education, get married, & live happily ever after, right?

I just cannot ......in my wildest dreams.....imagine HOW the hell anyone anywhere could let something like this happen.     I dont mean to sound cruel......or s****.>

That this OP should not under any circumstances have a checking account.  I am very surprised that even with all of the fees Bank of America was collecting they didn't close out the account outright.  As we hear reports of them closing out accounts for reasons not nearly as bad as this one.  If the OP really was watching their account "to the penny", there is no, zero, nada, zip way that it would have gotten to this point.  In fact I would take the previous suggestion one step further than what was previously suggested. They should not only not have a Debit Card, but no ATM card at all.

A few of points that were not mentioned before.  It is stated that they closed the Savings Account because of too many withdraws.  Yet later the OP states that they tried to link the checking to savings but either didn't know or couldn't.  Well I would bet that if they actually tracked it down, those "withdraws" in the beginning they would find out that their account was in fact linked.  That these withdraws were actually transfers to cover additional Overdrafts.

Also, the OP stated they were depositing CASH.  Depending on when the Cash was deposited it may not be credited right away.  Which always surprises me when people deposit cash and then immediately(I would bet) use their debit card to make a purchase instead of just using the cash in the first place.  This is a sure recipe for trouble.

If they were checks, BofA was holding the checks per the Federal Funds Availability Guidelines.  This is the same guidelines that ALL banks follow.  One of the provisions allowed is that if a person has excessive overdrafts(and if this does not qualify I don't know what does), they can do an extended hold on any checks deposited.

As for the lawsuits listed.  Those are not going to be the solution either.  Because if anything ever comes of them the OP or other "class" members would be lucky if they get more than the equivalent of a couple of OD fees refunded. 

Well it's not that I hate the banks..it's just myself and others feel the banks tactics and policies that contribute to all these fees should be exposed..and hopefully changed.

Now I must agree this poster has overdrafted way too many times to place all the blame on the bank..so I will not argue that point. After anyone becomes aware of how the banks charge fees, and the tactics that compound them...it really is the responsibility of the customers to not let it happen again.

Where I might differ in opinion is regarding opt out. Now the purpose of opting out is not meant to be a discipline..since it is fact that NSF's can still occur. But I have a feeling that if this particular poster was opted out..that it would have saved a bundle in fees. I have a strong feeling this poster was using the debit card too much...and the bank of course allowed many transactions to be approved even though the account was not able to cover it. The poster most likely was using the register wrong..and depending too much on the online statement.

Now add this up....improper register use + online statement + courtesy overdraft protection + re-sequencing = financial ruin.

I agree Truth detectors advice in this case is reasonable..but it still does not excuse the bank from what it does to contribute. Well anyhow that is not for me to decide legally..it is only my opinion. But the results of the lawsuit will let us know..maybe the banks will settle again.

Perhaps the OP can report back and let us know more detail. I am curious if this poster feels that if the debit card was declined when the account could not cover the transaction..if it would have made a difference. Of course if this poster was doing this with checks and ACH transactions opting out could have done more damage then good if done continuously. Opting out is not an excuse to get out of keeping track..it is a safe guard for those that use a debit card for many small purchases in lieu of cash. If the funds are not available...the transaction is declined..saving the customer the fees..and alerting them that the account needs attention on the spot.

STOP USING CHECKING ACCOUNTS

I don't mean that in a facetious way. Anyone who rolls up 148 overdrafts in 365 days (That's almost one EVERY OTHER DAY) is obviously not fit to have a checking account. Your problem is not that Bank of America is "stealing from you". Your problem is you obviously do not have the account management skills to track checking transactions and stop handing your money voluntarily to the bank.

Here is what I suggest:

1. Take your money out of Bank of America immediately.

2. Set up a SAVINGS ACCOUNT ONLY at your local credit union.

3. Ask the credit union for a transaction register and an ATM CARD ONLY (NO debit card).

4. PAY CASH for your expenses when possible. For the rest, buy money orders. Those things are maybe $0.49 if you shop around for them. You may pay a couple extra dollars each month, but compared to the $430 you're shelling out each month due to your inability to manage a checking account, that expense will seem like a bargain.

Whether bank haters want to admit it or not, there are some people who simply can't manage checking accounts. They can try all the "opt outs" in the world, but in the end an overdraft addict will find a way to get his or her fix via checks or ACH transactions. They simply cannot fathom spending within their means.

Given that temptation and the account management limitations of such people, assigning them a CASH ONLY status is the only way to save them the money they are voluntarily handing over to banks through their own negligence.

Bank Customers Victimized by Alleged Abusive Bank Overdraft Fees Strike Back

Consolidated, Nationwide Class Action Lawsuits Filed in Federal Court Against Bank of America, Wachovia, U.S. Bank, JPMorgan Chase and Citibank
October 20, 2009 11:00 AM Eastern Daylight Time

MIAMI--(EON: Enhanced Online News)--Marking a substantial step forward in litigation over the banking industrys abusive and excessive overdraft fee policies and practices, plaintiffs' counsel announced that bank customers have filed a series of nationwide class action lawsuits against Bank of America, Wachovia, U.S. Bank, JPMorgan Chase and Citibank. The complaints were filed in the United States District Court for the Southern District of Florida in Miami, where all federal lawsuits brought against the banking industry for abusive overdraft fees have been coordinated before the Honorable James Lawrence King.

    The collection of excessive overdraft fees, usually around $35 per transaction, impacts millions of Americans each year and has become a multibillion-dollar profit center for the banks

"The collection of excessive overdraft fees, usually around $35 per transaction, impacts millions of Americans each year and has become a multibillion-dollar profit center for the banks," explained lead plaintiffs counsel Bruce S. Rogow. "In many instances, these overdraft fees cost customers hundreds of dollars in a matter of days, or even hours, when they may be overdrawn by only a few dollars. Charging a $35 overdraft fee when a college student uses her debit card to buy a cup of coffee is unconscionable."

How Bank "Overdraft Protection" Works and Why the Abusive Collection of Overdraft Fees is a National Concern

Today, when customers open checking accounts, banks provide debit cards for the withdrawal of cash from ATM machines and the purchase of goods and services. Many bank customers are not aware that as part of the process of obtaining the debit card, banks automatically enroll their customers in "overdraft protection." The overdraft protection kicks in if the customer spends more than he or she has in the account to cover the purchase, up to a limit of a few hundred dollars.

Banks could simply decline to honor customer ATM or point-of-sale transactions if the account lacks sufficient funds, or could warn customers that if they go through with the transaction an overdraft fee will be assessed. In fact, until a few years ago, most banks simply declined debit transactions that would overdraw an account.

"Banks do not record charges and purchases on ATM or debit cards in the order they actually occur," stated plaintiffs counsel Michael W. Sobol of Lieff Cabraser Heimann & Bernstein, LLP. "Instead, banks reorder the charges and purchases so that the largest charge or purchase is the first one paid by the bank. This manipulative practice is intentionally designed, the complaints allege, to maximize overdraft fee revenue."

"If you buy your kids a $15 meal at McDonalds on your debit card and your account was overdrawn, that lunch actually cost you $50," added Mr. Sobol. "The bank wont decline the debit transaction, nor will the bank tell you that you have overdrawn your account and is about to turn your $15 lunch into a $50 expense."

In 2007, banks collected more than $17 billion in overdraft fees. That number nearly doubled in 2008, as more and more consumers struggled to maintain positive checking account balances. In 2009, banks are expected to bring in up to $40 billion in overdraft charges from nearly 50 million customers.

"While all bank customers have been affected, these overdraft fee policies disproportionately affect young people, the elderly and the poor, who are most likely to maintain low account balances," noted Mr. Rogow. "Moreover, these fees have the tendency to create a domino effect, resulting in even more fees."

Further Information for Bank Customers

Bank customers assessed overdraft fees who wish to learn more about this litigation should visit www.bank-overdraft.com where they can submit their complaint to plaintiffs counsel.
Contacts

Lieff Cabraser Heimann & Bernstein, LLP
Michael W. Sobol, 415-956-1000
or
Bruce S. Rogow, 954-767-8909
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