Capital One Bank Overdraft protection My A** Brooklyn New York
As soon as North Fork bank became capital one I started receiving Uncollected funds fees totaling over $350 ($35 each) The concern is that i have Overdraft protection for $1000 that's been working for 15 years since i opened account. And as soon North fork got renamed overdraft protection loan account doesn't do anything.
Every branch i went to advised me that it's not supposed to be that way and i should get the fees refunded, but only my branch can do it. So i went to my Ave U, Brooklyn branch and spoke to the senior client service rep Linda Medici. What she has explained to me is that overdraft protection only works if you have 0 or negative balance. But Once you deposit a fresh check and you have a balance but it's not available for a few (3) days. That your overdraft doesn't work. This in my opinion is just not logical. If you have 0 that overdraft protection will automatically move money from loan account to checking. But if you have a fresh deposit made it will not cover the payment. And it resulted in 10 uncollected funds fees. This really doesn't make any sense to me. My banking was always the same for 15 years. I get paid for freelance work in big chunks but every few month. So the balance slowly comes down to $0 and they I make a deposit. And often it goes into negative. That why I signed up for overdraft protection. And now with capital one Overdraft protection just became useless.
Anyone else experienced this problem?
Infisoul
Brooklyn, New York
U.S.A.
2 Updates & Rebuttals
Jim
Anaheim,California,
U.S.A.
Overdraft Does Not Mean Fee Avoidance
#3Consumer Comment
Fri, January 16, 2009
The fact you have overdraft doesn't prevent fees from being incurred if you take the account balance into the negative. It only means the bank will allow you to spend additional money (read their money) - without having the account stopped or placed on hold. Obviously, you then have to pay them back, plus the fee associated with the transactions incurred while in overdraft. From a fiscal perspective, overdraft only makes sense if your bank is going to cut you off the minute you get past zero. Otherwise, overdraft is worthless because you're only going to incur the fee anyway.
BTW - if you went to other branches and they told you what you wanted to hear, why do you suppose they all told you that? They all work off the same operating system, so how would one branch treat your transaction differently than any other one out there? Answer: they don't. So why do they tell you what you want to hear? Because they want your account - it's a sales dupe.
I don't know where your freelance checks are coming from, but a 3-day hold, depending on the size of the check, may not be unreasonable. It may be unreasonable as well - but there seems to be insufficient information either way. What I will tell you is that the bank has a max of 5 days to clear your check and if they're within the 5 days - it is considered reasonable.
Sid Icarus
Palno,Texas,
U.S.A.
Its nothing new
#3UPDATE EX-employee responds
Fri, January 16, 2009
The uncollected funds fees you mentioned are ridiculous. You hit the nail on the head as far as how they work. If you do not have funds in your account to cover the cost of an item clearing your account, your fine, OD protection will cover it. However, if there is a deposited check that is floating on the account, the item will override the OD protection and you will be hit with an uncollected funds fee.
However, the news here is that is not a new Capital One Bank policy. The uncollected funds fee was part of the North Fork banking system. I don't know for how long it was a North Fork policy, I was never able to get a straight answer from a NFB legacy rep.
Its also worth mentioning that internally Capital One Bank refers to itself as Bank North and Bank South. Bank South being made up of mostly formally Hibernia Bank branch locations in Texas and Louisiana. Bank North being composed of formally NFB branch locations.
I mention this because the uncollected funds fee was a NFB invention that was carried over during the conversion and only applies to Bank North customers. Bank South customers do not have such a fee and their OD protection functions as you would expect. I thought it was the stupidest thing in the world when I first heard about, and it is, but it was not a Capital One Bank policy, it was an NFB policy.