Complaint Review: Compass Bank

Compass bank holds direct deposits until the end of the day to post them. I've checked back over my online statement, all deposits are posted last, so if checks are presented for payment after the deposit is made, they reorder them for posting and hit you with NSF fees. In their disclosure, the policy is to make funds that you deposit in your account available on the day of deposit for the payment of checks presented through normal check collection channels, but that wasn't what I've experienced. Here is a cut and past of the messages I've sent back and forth with customer service on their online banking service.

Me:
I have three NSF charges on my account for December 11. The account was not overdrawn on that day. A direct deposit of $600 was due on Monday, December 9. It was made on December 10 due to Columbus day, and posted to the ledger on December 11. The account was not overdrawn on December 11. Please refund the three NSF charges. I understand that Direct deposits are not available the same day they are made, but they should be available the second day.

Compass:
Thank you for your e-mail. We process outstanding transactions before current transactions (yesterday transactions before today transactions). Therefore, if a debit card is used or a personal check is written before a deposit is made and those items are presented for payment, even if at the same time, they will process before the deposit. The checks for $275.00, $32.12, and $22.23 that cleared your account before your deposit on 10/11/2006 were written on 10/10/2006, 10/08/2006 and 10/07/2006.

Those checks were presented for payment on the same day as your deposit of $600.00, but because they were made before the deposit was made, those items processed first. The NSF fees for these checks posted on 10/12/2006. The best way to avoid this situation is to make sure funds are available, or a deposit has been made prior to making any debits or writing any checks. I have reviewed your account. Unfortunately, I am unable to refund the NSF fee as you have requested. Our guidelines limit NSF fee refunds to two per account. In reviewing your account, I see that you have already reached that number of refunds. I'm sorry I could not assist you. Please contact us with any additional questions. Thank you for choosing Compass Bank.

Me:
10/13/06--According to the Alabama Child Support Distribution Center, the deposit was made on 10/10/2006.

I have confirmed this with them. My statement for through 10/11/2006 shows that I have a positive balance.

I thought my deposit disclosure said that direct deposits immediately available.

Was this policy (outstanding before current) disclosed to me? I don't remember seeing this.

I confirmed with customer service that the direct deposit was made before 6:00 AM in the morning...does this mean the other items were presented before that, or do you check the date on every item? If so, why do I have an additional check (809) cleared the same day, AFTER the deposit. It was written earlier.

I'm very confused. Please clarify your policy.

Compass:
Thank you for your response. We show your deposit was received on 10/11/2006 and available on 10/11/2006. Compass Bank posts transactions as close to ?real time? as possible. This means that any debits to your account will be processed first if they were authorized prior to you making a deposit or receiving a direct deposit. Also, to avoid overdraft fees, please keep an accurate and detailed ledger of all of your check and debit card transactions. Check number 809 for $32.00 was written on 10/05/2006, and should have processed before your deposit. It was credited after your deposit in error. Since it was our error you will not be charged an NSF fee for this check. Please contact us if you have any additional questions. Thank you for choosing Compass Bank.

Me:
10/13/06--Again, was this in my disclosure? I don't remember seeing this.

I went to the branch for a copy of the disclosure on my checking account and it wasn't in the copy I received.


So if I deposit cash one morning, and my boyfriend come in to deposit a check I wrote the day before, you would pay the check before you would recognize the deposit?

Just trying to get a clear understanding of how this works.

Incidentally, I DID keep a list of checks and amounts. The check for 275 that was paid first was written AFTER I was told the direct deposit was made by Alabama Child Support Distribution on the 10th. And it was paid first.

Compass:
Thank you for your response. We show that your deposit was available when we received your deposit on 10/11/2006. The check was written on 10/10/2006 when you had a balance of $91.22. You can review page 5 on your Consumer Deposit Account Agreement under ?service charges; other charges, and order of payment and page 7 ?insufficient available balance and overdrafts? for more information. You are subject to NSF fees if you write a check or authorize a debit before a deposit is made in your account. Please let us know if we can be of further assistance, and thank you for choosing Compass Bank.

Me:
Actually, I'm reviewing the disclosure. It says on page 18 that "Our policy is to make funds that you deposit in your account available on the day of deposit for the payment of checks presented through normal check collection channels". On page 7, it says "You agree that, if your available balance is insufficient to pay any item presented against your account, you will promptly will pay both our service charge for handling and processing that item and the amount of any overdraft without further notice on demand." It doesn't say anything about when the check was written.

I found nothing in the disclosure about current or outstanding disclosures, or that you would post checks written before you received the deposit before the deposit, even if you receive them at the same time?

Could you tell me when the $275 check was presented to you for payment? Which Business day?

Thank you.

End Of Messages

I don't think I'm going to get the three NSF fees returned to me, but I have been led to believe by the people in the bank that if I make a cash deposit, then it will be available for any checks that might come in later that day. I specifically asked that question in September when I realized, after the fact, that I made a legitimate error in my account, was overdrawn, had outstanding checks, and wanted to prevent any further overdrafts or NSF fees.

I also made two customer service calls this morning, before I received email responses. The first told me that even though a direct deposit is made on one day, they don't release the funds until the day they are told to release them. She told me that the child support office told me the wrong date on the direct deposit, that the funds were not released until the 11th. I confirmed that the funds were to be released upon receipt with child support office, called back, and they told me that they post all the time, that the actual time they received the funds was between 5:00 and 6:00 AM on the eleventh, but that they do not post that until all credits are posted due to EDP, or Effective Date Posting. When I tried to get her to explain what EDP was, she gave me a PO Box in Arizona to write to, could not give me a street address, and didn't have an address in Alabama to help me.

Melissa
Fairhope, Alabama
U.S.A.