Bank Of America rip-off! They deduct the largest debits first then charge $33 per overdraft. If you make a mistake, they will capitalize. Charlotte North Carolina
I know it is my responsibility to be sure that I do not over draft my bank account, but it is no excuse to be taken unfair advantage of. I checked my BofA checking account this morning to a very disturbing suprise. I had used my check card on 10-1 and twice on 10-2. The one on 10-1 was a BofA ATM. The other two were check card purchases. Today is 10-5. It appears that a check that I forgot about was stamped as recieved on 10-4.
Instead of the transactions on 10-1 and 10-2, which were small, being deducted first, BofA deducted the check that came thru on 10-4. These transactions were 2 to 3 days before the check was stamped as recieved. This action caused the three later transactions to list insufficient funds. These 3 transactions were for $40, $3.16, and $7.38. BofA is charging me $33 each for them.
I spoke with a BofA representative who stated that the weekend transactions would not have posted until Monday afternoon. She stated that the check was put thru first due to it being the largest amount. She says that this is "just the way they do things." My argument is that there was too large of a time period between these transactions for them to do this. The on-line banking showed the three smaller transactions pending on the morning of 10-4. The check was not showing even as pending.
When I explained to the Customer Service Representative that I felt that this was not handled correctly, she told me that it was not my place to tell them how to handle their business. They are handling my money, so I feel they should watch the way they deal with it. Be warned, obviously BofA's system is set up so that if you make a mistake, they will capitalize. They just got the last $99 they will ever get from me.
Daniel
Florence, South Carolina
U.S.A.
1 Updates & Rebuttals
Jul
Morgantown,West Virginia,
U.S.A.
explination
#2Consumer Suggestion
Sun, October 24, 2004
#1 when you use your debit card, do you sign a reciept or use your pin #? If you use your pin # the transactions are paid w/in that business day b/c your pin is your electronic signature. As I am sure you have past statements, look on one of them and then look at the items from your card. If it just says the name of the merchant - you used your pin # and it's authorization date would be beside the merchant's name. It will be paid the business day that you authorized it or the next business day (depending on the time of the day you authorize it). If you use your signature instead of the pin - the bank has to verify payment and not just an authorization before it's paid; so depending on when the merchant collects their money depends on when your bank debits it out of your account.
#2 The reason you are charged $33 is because you have overdrawn your account more than 5 seperate days of the last 12 months. Which is alot, so the fee is more than the first occurrence of $17 over draft fee. Just for your information.
#3 The reason the bank pays the larger items first, is because other customers demand if they are short on their accounts that the mortgage payments and car payments and things that would cause more problems than overdraft fees if they were not paid because the little things were paid first.
#4 The bank (whatever bank, Bank of America, Wells Fargo, ma & pa banks even) give you all of this information when you first open your account. Its called your depositor's agreement and when you maintain an account you are agreeing to their rules or "how things are done".
#5 The checks you write will never show as pending for the same reason when you use your card without your pin number.
IT'S UP TO THE PAYEE TO PRESENT IT TO THE BANK FOR PAYMENT. THE BANK DOESN'T HAVE ESP SO THEY CAN'T KNOW WHEN THE CHECK WILL BE PRESENTED FOR PAYMENT UNLESS IT IS CASHED AT YOUR BANK.
So if you write me a check for $20, and I deposit the check instead of cashing it at your bank; you won't know that I deposited that check until after that day. Hence, it will never show as pending, unless cashed at your local bank. unless it's converted as an electronic check. Then it will show as pending the day it will be paid.