Regions Bank, Formerly Amsouth Bank pay largest drafts first regardless of when it was originally posted causing the potential of overdraft charges. Altamonte Springsaltamonte Springs Branch Florida
A bank customer service person informed me that yes, it is standard practice for a bank to pay the largest draft first because it presented the biggest risk (for them!) as a result, I over drafted on several $2 and $3 charges resulting in almost $300 in overdraft fees. If that had simply posted the charges in the order that they were made, the charges would have been minimal if any.
They offered an overdraft protection account but everytime it was used and drew down to zero, it would automatically close out. I would then have to go in and open another account and so on. This is a rip off.
Joey
longwood, Florida
U.S.A.
2 Updates & Rebuttals
Edgeman
Chico,California,
U.S.A.
Posted...
#3Consumer Comment
Wed, December 03, 2008
Hey Joey,
I can certainly see that you're upset. I would be too if I had to pay that much in fees.
Having said that, I want to explain how this actually works. Let's say that you buy a sandwich on your debit card. At that point the transaction has not hard posted. What happens is that there is a deduction of your available balance (say $6 in this example). If you were to go check your balance online, you'd see the $6 pending transaction, but it would not be hard posted.
Now the bank is waiting for the merchant to submit the charge. This actually could be different than the amount that was withheld. Maybe you tipped the cashier and that doesn't reflect in the withheld amount.
Now let's say it is Wednesday and the bank receives four transactions that you authorized on Saturday, Sunday and Monday. On top of that, those transactions were received at noon, 1 pm and 2 pm. It is entirely possible that the Saturday transaction would arrive after the Monday transaction.
Because the banks have no control over when the merchants submit their charges and when those transactions arrive, most of them just process transactions from largest to smallest on the day they arrive.
To avoid this in the future, I suggest you keep a written register or ledger. Do not make any transactions unless you are positive that the funds are available and maybe consider withdrawing $20 at the ATM instead of multiple $2 and $3 transactions. That way if you make a mistake you will only be charged one fee instead of nine or ten.
Wesly
Owosso,Michigan,
U.S.A.
Sorry about your OD
#3UPDATE EX-employee responds
Wed, December 03, 2008
Hey Joey!,
I used to work for Amsouth Bank. If you have a really good account with Amsouth Bank you might be able to call and get some of those fees reversed. It's worth a shot calling and finding out. those 2 dollar and 3 dollar items were probably bs items. I don't know what your situation is, but If your able to just keep 100 dollars in your checking account and don't keep it in your ledger balance. that way if your account get's messed up by a dollar or 2 It You don't OD. I believe at least half of in our life have OD'ed one time or another by accident or by a fraudlent transaction or Bank Error.