BANK OF AMERICA, NA ripoff overdraft fees, debiting before crediting same day direct deposit Charlotte North Carolina
Bank of America is stealing their customers money again. After making a direct deposit from employer, the bank debited account on same day claiming "the deposit takes 48 hours to clear".
this inspit of my global company employers millions in payroll direct deposits. they are using there computers ot beat the customer by first making debit and then credit even if the credit ((deposit)) is on the same day.
Be warned they are not very responsive and have instituted a memo policy preventing branch relationship bankers from reversing.
Jay
new york, New York
U.S.A.
5 Updates & Rebuttals
Robert
Wallingford,Connecticut,
U.S.A.
Steve is always right on the money...
#6Consumer Comment
Wed, December 13, 2006
however, not ALL banks process debits before credits on the same banking day. My current bank does indeed process credits first followed by debits that post to my account on a particular day. However their account terms and conditions does state that they can process debits and credits in any order they chose.
I expect that they will change that soon, as they seem to be falling in line with the larger bank's policies. Up until this past spring they would process debits smallest to highest. Now they process them opposite. Regardless, I keep an accurate account register so it has little or no effect on me.
Steve
Bradenton,Florida,
U.S.A.
Ken is absolutely correct. And every bank does this.
#6Consumer Suggestion
Tue, December 12, 2006
Jay,
This is common banking practice.
The problem is, you were living on the "float" by making transactions against your account BEFORE your direct deposit was posted.
Charges/debits ALWAYS get posted before Credits/deposits in the same banking day. This is clearly detailed in your account agreement.
Manage your account the way it should be and NSF fees will never be a problem.
I have 3 different direct deposits into my Bank of America checking account very month. I have never had a problem, because i wait to spend my money after it has been posted to my account.
Ken
Randolph,Massachusetts,
U.S.A.
Direct Deposits
#6Consumer Comment
Tue, December 12, 2006
By law, banks cannot and do not hold Direct Deposits. They can (and do) hold funds deposited by check. There may have been some confusion on this issue when you asked your question.
What does happen, however, is that the mega-banks process all transactions for a calendar date at night, and the process debits before credits. This means that if you have a direct deposit due for a Friday morning, and checks come in on Friday, you are overdrawn, plain and simple.
While this doesn't seem fair, they disclose this when you open the account, so (in theory) you are forewarned. This is only going to get worse in the future, since we are now beginning to see checks clearing accounts on the day they are written.
Ken
Randolph,Massachusetts,
U.S.A.
Direct Deposits
#6Consumer Comment
Tue, December 12, 2006
By law, banks cannot and do not hold Direct Deposits. They can (and do) hold funds deposited by check. There may have been some confusion on this issue when you asked your question.
What does happen, however, is that the mega-banks process all transactions for a calendar date at night, and the process debits before credits. This means that if you have a direct deposit due for a Friday morning, and checks come in on Friday, you are overdrawn, plain and simple.
While this doesn't seem fair, they disclose this when you open the account, so (in theory) you are forewarned. This is only going to get worse in the future, since we are now beginning to see checks clearing accounts on the day they are written.
Ken
Randolph,Massachusetts,
U.S.A.
Direct Deposits
#6Consumer Comment
Tue, December 12, 2006
By law, banks cannot and do not hold Direct Deposits. They can (and do) hold funds deposited by check. There may have been some confusion on this issue when you asked your question.
What does happen, however, is that the mega-banks process all transactions for a calendar date at night, and the process debits before credits. This means that if you have a direct deposit due for a Friday morning, and checks come in on Friday, you are overdrawn, plain and simple.
While this doesn't seem fair, they disclose this when you open the account, so (in theory) you are forewarned. This is only going to get worse in the future, since we are now beginning to see checks clearing accounts on the day they are written.