Complaint Review: Bank Of America - Hanover Maryland

Hi all, thank you for your comments, but I have found the following which is very interesting.  See below, you can make up your own opinions. 

Quote

The collection of excessive overdraft fees, usually around $35 per transaction, impacts millions of Americans each year and has become a multibillion-dollar profit center for the banks "The collection of excessive overdraft fees, usually around $35 per transaction, impacts millions of Americans each year and has become a multibillion-dollar profit center for the banks," explained lead plaintiffs counsel Bruce S. Rogow.

"In many instances, these overdraft fees cost customers hundreds of dollars in a matter of days, or even hours, when they may be overdrawn by only a few dollars. Charging a $35 overdraft fee when a college student uses her debit card to buy a cup of coffee is unconscionable." How Bank "Overdraft Protection" Works and Why the Abusive Collection of Overdraft Fees is a National Concern Today, when customers open checking accounts, banks provide debit cards for the withdrawal of cash from ATM machines and the purchase of goods and services. Many bank customers are not aware that as part of the process of obtaining the debit card, banks automatically enroll their customers in "overdraft protection." The overdraft protection kicks in if the customer spends more than he or she has in the account to cover the purchase, up to a limit of a few hundred dollars. Banks could simply decline to honor customer ATM or point-of-sale transactions if the account lacks sufficient funds, or could warn customers that if they go through with the transaction an overdraft fee will be assessed. In fact, until a few years ago, most banks simply declined debit transactions that would overdraw an account. "Banks do not record charges and purchases on ATM or debit cards in the order they actually occur," stated plaintiffs counsel Michael W. Sobol of Lieff Cabraser Heimann & Bernstein, LLP. "Instead, banks reorder the charges and purchases so that the largest charge or purchase is the first one paid by the bank.

This manipulative practice is intentionally designed, the complaints allege, to maximize overdraft fee revenue." "If you buy your kids a $15 meal at McDonalds on your debit card and your account was overdrawn, that lunch actually cost you $50," added Mr. Sobol. "The bank wont decline the debit transaction, nor will the bank tell you that you have overdrawn your account and is about to turn your $15 lunch into a $50 expense." In 2007, banks collected more than $17 billion in overdraft fees. That number nearly doubled in 2008, as more and more consumers struggled to maintain positive checking account balances. In 2009, banks are expected to bring in up to $40 billion in overdraft charges from nearly 50 million customers. "While all bank customers have been affected, these overdraft fee policies disproportionately affect young people, the elderly and the poor, who are most likely to maintain low account balances," noted Mr. Rogow. "Moreover, these fees have the tendency to create a domino effect, resulting in even more fees." Further Information for Bank Customers Bank customers assessed overdraft fees who wish to learn more about this litigation should visit www.bank-overdraft.com where they can submit their complaint to plaintiffs counsel. Contacts

WOW, I think this says it all.  I'm not going to file in the class action law suit, but I have been enlighten on the way certain banks operate.  

Thank You

I agree with all the folks above, we are responsible for our actions.  And as a follow up he is not getting off scot free.  He is required to pay me back all the money to settle the account, he has already payed back $245.00.

And yes, it was my responsibility to give him all the tools and training to survive the "real World".  I have since went back and "as painful as it was" got him to review and go over his checking account, and how to properly manage it and keep track of his funds.

I have also closed out the BOA account (which is one way of telling them I do not care for their tactics), and we have set up an another account where he gets notices of pending shortages instantly in an e-mail (I also get them).  He is still responsible for his account and managing it, Just think of me as a manager with a vested interest in his account.  Trust but verify.

Knowledge is power and power is knowledge, and how banks operate is knowledge and can give "us the consumer" the ability to avoid any-necessary charges.  We need to teach our kids how banks operate, so they can avoid any "Unnecessary" charges.

I want to thank you for your comments..

Your son is in College...why are you trying to babysit his account?

It does not matter if he has "Student Free Checking" or any other type of Checking Account.  It is HIS responsibility to make sure that HE is taking responsibility over HIS account.  The time excuse is just that an excuse.  If he has time to use the card he has time to "keep track" of his balance.

Of course the bank is not going to let you block his card, because he is an adult(over 18) and is responsible for his actions.  What if someone just called up your bank, said they were your spouse and they wanted to block your card?

Personally I know why you did it, but I think you made a mistake by coming to his rescue.  As in the end he didn't really learn anything because mommy/daddy came to the rescue.  What incentive does he have to manage his account if not only you replaced the money, but now linked the account to your savings in case he does it again?

Please do the research, and talk to your student prior to opening an account with any bank.

- This was your best advise.  As what SHOULD you be doing to use this as a learning experience.

1. Explain to him the importance of a Check Register.  This includes writing down EACH and EVERY transaction he makes.  Again if he has enough time to use the card he has enough time to write the transaction down.

2. Show him how to create a budget.  Then have him take out a set amount of cash for those small purchases.  After all it is pretty hard to spend more cash than you have in your wallet.  Just try going to your local coffee house and buying a $5 cup of coffee with $2.

3. Explain to him the consequences of trying to spend more money than he has in his account when mommy and daddy are not their to bail him out.  This could include additional fees and issues with trying open up other accounts in the future.

Now, even after all of this you will hear people taking about how your son did nothing wrong,  and the banks are evil.  They will even tell you about how the automatic overdraft protection they extended him.  But all of their talk about the "evil" bank does not take away the personal responsibility an account holder has to manage their account.  Now, normally your son could look into "opting-out" of this overdraft protection, but since you have linked your account that is really a non-issue.

  I read your report and in no way do i work for a bank but i have accounts so I deal with banks.  I just wanted to say I am in my mid twenties and I understand college can be time consuming but can I just say life is gonna come and go so there will always be things people need to remember to do regardless of how busy they are.  First and foremost balancing the checkbook/visa card is one of the upmost important things to do.  I dont know about you and your family but I dont have a money tree in my apt.  Instead of making excuses for your son teach him how to take care of his money and if he can't learn to do it on his own make him deal in cash.  I went to college I know how it is so really its no excuse to me.  I still maintained a job and checking since I was 15.  While some banks do wrong I agree (but not in this case) isnt it up to us to know how much money we have left to spend when we swipe the debit card or write that check.  I mean you said yourself there was no money and he kept using the card I mean seriously you guys need to get it together.  The price of JUST THIS ROUND OF OVERDRAFT FEES: 445.00 The price of a registry. pen and calculator:$1.99.  Tell me again which would you rather pay.  I hope your child knows how blessed he is because my family wouldnt be able to bail out my stupid mistake if that were me.  Teach your child a valuable life lesson but please blaming the bank is only creating excuses for him.