PNC Bank PNC Bank Pending Transaction Abuse Washington District of Columbia
It's standard these days for banks to keep track of two separate balances for an account: available balance and ledger balance. If you authorize a transaction (say, on a check card), the funds are removed from the available balance immediately. When the transaction clears, the item is inserted into the ledger and the two balances are reconciled. A similar procedure holds for deposits, and there's nothing intrinsically scandalous about the process.
My old bank respected the real chronological order of transactions when it posted them, but PNC manipulated the timing to rip me off for almost $300.
About a month ago I used my card over the course of a week for a number of small transactions: $10 for lunch, $1.50 for a Pepsi, etc. All of them sat in pending limbo for a long time - much longer than the usual 1-2 days for a check card transaction to clear. I checked my balance and noticed that I had about $20 in available funds, which wouldn't last through my next paycheck. So I bit the bullet and withdrew enough money to cover my expenses, knowing I would swallow a $31 fee.
Imagine my surprise when I discovered $248 in fees on my next statement - 8 separate fees. The ledger had been updated in reverse order (and all on the same day), so my big withdrawal came through first and my $1.50 soda cost me over $30. This isn't a case of a deposit not being available yet when the debit was made. The funds were there, available, and authorized - 7 legitimate transactions. But PNC manipulated the ledger to make them all overdrafts.
PNC's erratic bookkeeping has been a nuisance in the past. I've seen items sit pending for 2 weeks and then enter the ledger at their original date. I've seen ATM withdrawals take 5 days to clear. I've seen items appear pending, disappear altogether, and reappear a few days later. Annoying but tolerable. This time it hit me in the wallet, so I complained.
Act 2: I found a reasonably sympathetic ear at a branch, and the representative agreed to remove 3 of the fees. Still reeling from the fees a few weeks prior, I was close to overdraft again. With three fees eliminated, I felt free to go spend some of the funds on groceries. Big mistake.
The fees weren't removed. They were refunded. More importantly, the fee refund sat in pending status long enough for my most recent two transactions (made after my discussion with the bank rep, mind you) to overdraw my account and create MORE FEES.
What was pending? Nothing had to clear. It was an internal adjustment. No money changed location. It's a clear cut case of shenanigans.
Act 3: Wish me luck getting the new fees back. And finding another bank.
Casey
Washington, District of Columbia
U.S.A.
5 Updates & Rebuttals
Edgeman
Chico,California,
U.S.A.
Response to "A"...
#6Consumer Comment
Sun, December 28, 2008
'So you think charging 34 dollars for a dollar loan is right?'
It doesn't matter what I think. If the account holder doesn't want to pay $34+ per overdraft, he or she doesn't have to sign that agreement and open the account. Or they can apply a little effort and keep a ledger of their transactions. An accurate ledger or register is important if you want to avoid overdraft fees.
'Typical banker you all think alike the bank is always right and the consumer is wrong.'
Hardly. There are many times when the banks are in the wrong. However, the vast majority of overdraft reports on this site could have been avoided if the account owner hadn't spent money that wasn't yet available.
' I dont get how our banking industry gets over on the public. Between 700 B bailouts because they cant make good loans. I dont get it you get both our tax money and our hard earned money what else do you want kids blood? Makes no sense at all.'
The bailouts happened because our government decided to encourage lenders to give mortgages to people who couldn't afford to make the payments. That should never have happened, but it is not the same thing as an account holder who overdrafts his or her account. Don't want to pay overdraft fees? Don't overdraft your account. Don't tell me that it's not possible, in my day I've had account balances as low as thirty-seven cents. I'm not even that great at math.
'banks need a lot more regulation they are the reason we are in such a pickle between bad practises and bad loans they all should just be shut down.'
As far as checking accounts go, banks are already heavily regulated. Given the fact that our government can't manage its own budget, helped bring about the current credit crisis and is on a fast track to ruin Medicare and Social Security, I'd rather not have them more involved in my checking account than they already are.
I don't want banks to be shut down. I find them useful.
A
B,Maryland,
U.S.A.
ya but you charge a fee that is far in excess of any sharked loan
#6Consumer Comment
Sun, December 28, 2008
So you think charging 34 dollars for a dollar loan is right? Typical banker you all think alike the bank is always right and the consumer is wrong. I dont get how our banking industry gets over on the public. Between 700 B bailouts because they cant make good loans. I dont get it you get both our tax money and our hard earned money what else do you want kids blood? Makes no sense at all.
banks need a lot more regulation they are the reason we are in such a pickle between bad practises and bad loans they all should just be shut down.
Ims407
Zelienople,Pennsylvania,
U.S.A.
Maybe this will clear things up
#6UPDATE Employee
Thu, August 14, 2008
Sir, i am very sorry about to hear about your situation. Upon account opening you were given a booklet called consumer account information. In this book it explains that we pay debits in descending order. The reason for this? The bank has the right to refuse payment on items that there is not enough funds to cover. Most people prefer large payments like their mortgage, credit card and car payments get paid over little purchases. In some cases we pay all the items and access overdraft fees, in some cases we reject items. Keep in mind your bank account is not a personal loan and you shouldn't knowingly overdraft it. We post items as we get them from merchants, so if we get a hold from them three days from when we recieve the final transaction from the merchant you will have a hold on your account for three days. I hope this information has helped.
Frank
Brick,New Jersey,
U.S.A.
banks will take the big one first.
#6Consumer Suggestion
Mon, June 23, 2008
If you are low on funds, don't buy it.
Banks will start taking out the Big Withdrawls first.
Example:
GAS: $40
Lunch:$25
Car Payments $375
If were all in on the same day,
Car payments will come first (to save the banks credit)
then the Gas and then the Lunch payment.
They say in a statement that is for the Bank Account owner.
Just remember that there is three was to confirm your account and how much.
1) Do not trust the AVAL Balance:
2)Do not trust the Ledger account:
3) only trust the ledger in your pocket if you can balance a checkbook. Some people can not.
4) have a savings account linked up with your checking account and only pay around $10 or less. For overdraft protection. (Credit cards also work but not worth it).
John
Califon,New Jersey,
U.S.A.
But who really cares
#6Consumer Comment
Fri, May 02, 2008
how the bank keeps track as it is YOU that must keep track of your transaction with a register. That is the only real accurate record if done properly. So, yeah I agree, you do abuse your pending transactions by spending what's already been spent.