Complaint Review: Chase - JP Morgan Chase Bank N.A. - Internet

Just received a notice from Chase yesterday that they are no longer going to automatically pay autodebits and debit card purchases when it causes an overdraft to your account.

Now the customer has the choice as to whether or not they want Chase to make the payment and incur an overdraft fee or instruct them not to pay (in the case that they made a human error by miscalculating the available funds in their account....Kathie from Phoenix).

Looks like I wasn't the only one that felt there was something incorrect with the way they handled their "alerts".  This is how they should have been handling things from the beginning.  I'm glad they finally wised up!

Forgot to state that my last response was to Kathie in Phoenix whose statement gives the impression that I purposely overdrew my account.

I never try to spend what I don't have.  But I am human and at that point, had errored by forgetting to enter money I had spent.  As one respondent said, the way the Chase phrases these "alerts" gives the impression that you will be "alerted" in time to correct your error, if at all possible.  So do not accuse me and think that I purposely overspent in an effort to cover the money after the fact.  THAT'S NOT ME AND YOU DON'T KNOW ME!!!

I had never overspent before that time, and have not done so since.  But customer loyalty means nothing to any of the corporate business run today, so I should have expected nothing less!

Alert - condition of heightened watchfulness or preparation for action; "bombers were put on alert during the crisis"

Chase makes the claim that they are helping to make the consumer alert, to help protect them from fee's.

They should have helped the consumer be prepared by letting them know to keep their own record and that they are responsible for any over spending, this would make the consumer take the correct actions to prevent fee's/

...logic would point to that if the bank is alerting you an overdraft has occurred...then it is too late....and you will incur a fee.

Now this "alert" service is better then nothing..since most of the time the bank will just continue to allow transactions to process well after the first overdraft occurred...and then the fees will be much greater as opposed to if you lost track of your spending and continued using the card.

I am not coming to the defense of the bank in this case..as I know first hand they use tactics to encourage overdrafting....heck..just the point that they cover overdrafts whether you want them to or not proves they expect them to occur.

I have found that since I keep a low balance in my checking account..and I do not use checks to pay any bills...that it was safer for me to opt out of overdraft protection all together. Now granted it is your responsibility to make sure you do not spend more then you have in your account..but since the bank is going to do nothing but cover overdrafts...charge you  fees...and then alert you ...it seems that service is a little more expensive then simply allowing a transaction to be declined if the finds are not available.

As a side bonus....if the card is ever stolen...used fraudulently...or you make an error with your accounting...if opted out of OD protection...the card will be declined at any point of sale..or ATM...saving you potential fees by declining the transaction before an overdraft can occur.

Something to consider. Ask the bank if they will allow you to opt out of courtesy overdraft protection...or enroll in a transfer service that will use funds from your savings account if you have one to cover overdrafts from your checking account. There still may be a fee..but it will be less then 32 dollars. With my bank it is 12 dollars...and free if my savings account balance is over $10,000...which not too many average consumers have in their savings account these days. But if you do..this is a good policy for the customer.

Don't spend money that is not yours!  When you choose to use your debit card, knowing that your money has run out, you are agreeing to their $25 - $35 overdraft fee.

If you have the cash to "fix your balance", why wouldn't you just use cash to pay for your purchases?  Where is the logic in "I know I don't have the funds to cover this purchase, but I'll hurry up and go deposit cash AFTER I overdraft my account" ???

You have NOT been ripped off.  Learn to balance your budget and your checkbook.