U.S. Bank, US Bancorp Unauthorized cash advance which resulted in $388 fee....they were helping me avoid a $35 overdraft fee Internet
I have a checking account and credit card account with US Bank, and so does my wife. A while back I was making a few large purchases that I had been planning for some time (the total amounts were about $8000). My credit card had a limit in the teens of thousands (plenty) but the checking account was not my primary account so I only had a few hundred dollars in the account.
I was planning to make the purchases with my credit card and then pay the balance in full the following month to avoid any finance charges on the purchases. My primary checking account had more than enough money to cover the payment the following month.
Well, I did a stupid thing and accidentally used my debit card to make the purchases. Immediately afterward I realized what I did and called US Bank to explain my error. They informed me that I would have an overdraft fee of $35 on the checking account, but that they could "switch the purchases" to my credit account to avoid the overdraft fee. I readily agreed as I was not interested in paying a $35 overdraft fee and this was an honest mistake.
To my horror a few days later I saw a credit card cash advance fee of $388 on my credit card, with a new balance of ~$8000 in my checking account (and the same amount charged to my credit card).
The CSR that I spoke with did a Cash Advance for me, which turned my $35 overdraft fee into a $388 cash advance fee. I called customer service several times in the following weeks and kept getting assured a call-back, but never got one. This is fraudulent practice as I did not authorize the cash advance.
4 Updates & Rebuttals
Ashley
springfield,Missouri,
U.S.A.
exactly
#5Consumer Comment
Thu, October 15, 2009
" which is what I thought "Switching the purchase to the credit card" would entail "
You all know what happens when you start assuming things correct? Perhaps in the future you will inquire as to HOW they are planning on changing the transaction.
Matt
Fort Rucker,Alabama,
USA
Still wronged
#5Author of original report
Wed, October 14, 2009
I disagree...I wanted the purchase to be made using the credit card, which is what I thought "Switching the purchase to the credit card" would entail....Had I known there was going to be a cash advance fee (they NEVER used the term "cash advance") I would not have done it, as I'd rather pay a $35 overdraft fee than $388 in cash advance fees!
Ashley
springfield,Missouri,
U.S.A.
They did what you asked
#5Consumer Comment
Wed, October 14, 2009
They did move the charge to your credit card. I'm not sure how else they could have done it except with a cash advance to cover the purchase. You could have done a balance transfer, but the amount would have had to post to your checking account first. Last time I checked most banks did not offer 8000$ in overdraft protection though.
You made the mistake of using the wrong card, and it sounds like they did what you asked, you just did not understand what they were doing. I'm not sure they CAN unauthorize a purchase on one card and authorize it on another card. I'm sure there is laws against that sort of manipulation.
Ronny g
North hollywood,California,
USA
Wow...
#5Consumer Comment
Wed, October 14, 2009
If I were in your shoes..I would be waiting at the front door of that bank tomorrow morning before they even opened...and would not leave until this matter is resolved.
If for some reason you can not be at the bank...be on the phone 24 hours a day..until this is resolved. Do not snooze on this one..the longer you wait..the more difficult it may be to recover...I know I would recover every cent or make their lives a living hell until I did.