- Report: #303171
Complaint Review: Huntington Banks - Huntington West Virginia
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Huntington Banks
919 5th Avenue Huntington, 25701 West Virginia, U.S.A.
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Huntington Banks Overdraft Fee(s) for On Line Bill Payment posted to wrong date. Huntington West Virginia
*Consumer Suggestion: $2.50 at McDonalds?
*Consumer Suggestion: Michael, you set yourself up for failure!
*Author of original report: Sorry that no one got it!!! The two responses were off base
*Consumer Comment: I agree with you Michael
*Consumer Comment: Question for you...
*Consumer Suggestion: To Steve
I do my banking on line and as an I.T. person I am very cautious with my data entry. I posted four bill payments to be paid on January 24, 2008. This is the same day as my payroll check hits the account. However for some reason unknown to me one of the transactions posted on January 23, 2008 and was paid on January 24, 2008. This resulted in six overdraft fees at the rate of $38.50 each plus a 10.00 overdraft fee for an auto transfer from savings. Since there was insufficient amount in saving to cover the bill payment transaction the transfer did not result in any protection. Also the five other transactions were all under 10.00 each. The result was a total of $231.00 in fees being charged to my account.
After calling the bank I was informed that they would as a courtesy remove two of the fees or $77.00. But I explained that if the bill had not posed even though there was insufficient funds to post then there would not be any fees because there would have been sufficient funds available.
Now keep in mind that I monitor my account daily and consider myself a person who takes his account very responsibly. I do this be make sure such errors do not occur.
I have read on the Internet that banks are making billions of dollars on overdraft fees. They have lobbied in Washington to the Federal Reserve to protect these fees and there revenue from them. Banks also have been targeting the low and middle income bracket citizens by putting branches in supermarkets and in areas where they can attract customers who are more likely to overdraft there account.
As and IT Person I know it would be simple for the bank to have programmed there system to just not post or pay the bill payment without sufficient funds available. However, that would result in loss of fees for the bank. The consumer never is notified till days ofter this has occurred when they receive a statement in the mail. Banks could also have a way for customers to set up allerts on there accounts to page you or email you if something like this occurs.
But charging fees is a way of getting interest rates that exceed 500%. For example, one of my charges was $2.50 to McDonald's. The fee was $38.50 which resulted in what would be considered a short term loan. The interest rate for the loan of one day was over 500 percent.
The problem is the consumer has little or no choice but to change banks or seek a credit union. This is costly and time consuming as many have to change the auto deposits with there employer, order new debit cards and checks and make a number of financial adjustments. Banks know this and know that they can get away with it with out any real recourse from the customer.
Recently banks have cried when Credit Unions started expanding with branches and across state lines. Credit Unions use to only be available to a select group. For example your company if it is large enough may have its own credit union. But now anyone can walk into any credit union and join. Also many credit unions now offer on line banking and many other services that banks traditionally offer. So tomorrow if the bank does not remove all the fees in the interest of keeping my account I will close all of my checking and savings accounts and start working toward moving them to a local credit union.
I did find out that one Credit Union locally charges as little as $5.00 for an ATM or Debit Card Transactions and $15.00 for a check overdraft. Far more reasonable than Huntington Bank.
So consumers beware. Shop around because the banking systems are designed to trap you into paying a fee or fees. It is not by neglect or accident on the banks part but by design and you are the victim.
Michael
Lavalette, West Virginia
U.S.A.
After calling the bank I was informed that they would as a courtesy remove two of the fees or $77.00. But I explained that if the bill had not posed even though there was insufficient funds to post then there would not be any fees because there would have been sufficient funds available.
Now keep in mind that I monitor my account daily and consider myself a person who takes his account very responsibly. I do this be make sure such errors do not occur.
I have read on the Internet that banks are making billions of dollars on overdraft fees. They have lobbied in Washington to the Federal Reserve to protect these fees and there revenue from them. Banks also have been targeting the low and middle income bracket citizens by putting branches in supermarkets and in areas where they can attract customers who are more likely to overdraft there account.
As and IT Person I know it would be simple for the bank to have programmed there system to just not post or pay the bill payment without sufficient funds available. However, that would result in loss of fees for the bank. The consumer never is notified till days ofter this has occurred when they receive a statement in the mail. Banks could also have a way for customers to set up allerts on there accounts to page you or email you if something like this occurs.
But charging fees is a way of getting interest rates that exceed 500%. For example, one of my charges was $2.50 to McDonald's. The fee was $38.50 which resulted in what would be considered a short term loan. The interest rate for the loan of one day was over 500 percent.
The problem is the consumer has little or no choice but to change banks or seek a credit union. This is costly and time consuming as many have to change the auto deposits with there employer, order new debit cards and checks and make a number of financial adjustments. Banks know this and know that they can get away with it with out any real recourse from the customer.
Recently banks have cried when Credit Unions started expanding with branches and across state lines. Credit Unions use to only be available to a select group. For example your company if it is large enough may have its own credit union. But now anyone can walk into any credit union and join. Also many credit unions now offer on line banking and many other services that banks traditionally offer. So tomorrow if the bank does not remove all the fees in the interest of keeping my account I will close all of my checking and savings accounts and start working toward moving them to a local credit union.
I did find out that one Credit Union locally charges as little as $5.00 for an ATM or Debit Card Transactions and $15.00 for a check overdraft. Far more reasonable than Huntington Bank.
So consumers beware. Shop around because the banking systems are designed to trap you into paying a fee or fees. It is not by neglect or accident on the banks part but by design and you are the victim.
Michael
Lavalette, West Virginia
U.S.A.
6 Updates & Rebuttals
Dooomed!
Stevens Point,Wisconsin,
U.S.A.
To Steve
#2Consumer Suggestion
Tue, January 29, 2008
"Now for the heart of your problem! Checks and Debits at most banks will always post before deposits and credits in the same day." Maybe that is true at your bank, but not at any I have ever banked at, nor at the one that I work at. A direct deposit is available on the day it is released by the depositor. Individual banks may have funds availability policies that affect the time it takes for a check to be available, and Regulation CC dictates when funds for large checks can be released. Nonetheless, during night processing each night, credits are applied before credits.
Striderq
Columbia,South Carolina,
U.S.A.
Question for you...
#3Consumer Comment
Sat, January 26, 2008
In your OP you say that your payday was Jan 24th, but in the rebuttal you say your payday was Jan 25th. Which is your real payday? Aditionally, the billpay that posted early, sounds like your bank does not have an electronic funds transfer agreement with them, so the bank printed a check and mailed it to reach the company on the 24th. The company got it early and processed it. You may want to consider moving that particular company's payment back a day so that you do not run into this problem each month.
Bjoycec
Streetsboro,Ohio,
U.S.A.
I agree with you Michael
#4Consumer Comment
Fri, January 25, 2008
The overdraft fees are outrageous. I had to pay them a couple of times only because I subtracted wrong. It used to be that if funds were not available the transaction would not go through. I have heard so many stories of people paying overdraft fees. I am planning to close my checking account and cash my pay checks at Wal-Mart for a $3.00 fee. I can pay most of my utilities at a local drug store for the price of a postage stamp. I think it is a good idea if you can bank at the credit union. As for me, I am putting my money under my mattress.
Michael Adkins
Lavalette,West Virginia,
U.S.A.
Sorry that no one got it!!! The two responses were off base
#5Author of original report
Fri, January 25, 2008
Missed the target! One responded about using a Bank Card in stead of cash and focused on that as the problem. What was interesting was the second person agreed with the first and then proceeded to tell me about how deposits hit after the on line bill payments are taken out. Sorry that I was not more clear but both may be good advise but missed the target. Here is what happened. I posed 4 bill payments to hit on Friday 1/25/08. Three of them posted correctly but the forth posed for 1/23/08 which was two days before my payroll hit the account. This resulted in the overdraft situation. It would not have mattered what the size of the debit card withdraw, it would still have been an overdraft. So here is the good news. I have been with this bank long before it was Huntington Bank. I have banked at this back for some 45 years. So I am lucky enough to know the VP and we go back quite a ways. I went in and explained what had happened and he simply wiped out the overdrafts that totaled $212.00. But if this had happened anywhere else and to someone who had over-drafted before the result would most likely have been quite different. Also, the Huntington Bank representative on the phone last night was only willing to forgive two overdrafts and no more. So this amounts to a "Who You Know" situation. So now for me I have no further complaint. Thank you all.
Steve
Bradenton,Florida,
U.S.A.
Michael, you set yourself up for failure!
#6Consumer Suggestion
Fri, January 25, 2008
Michael, First, I have to agree with the other respondent about using a debit card for a small purchase like $2.50. This is an invitation for problems and is totally senseless. Now for the heart of your problem! Checks and Debits at most banks will always post before deposits and credits in the same day. Therefore, scheduling bill payments on the same day as your payroll direct deposit is the root cause of your problems here. The checks and debits will post first, causing overdrafts. Solution. If your direct deposit is scheduled for the 24th, you need to schedule your online bill payments for the 25th to avoid an NSF issue if your balance is low. You MUST have money in your account, posted and available, BEFORE making a transaction. That is the solution here.
Nancy
Steilacoom,Washington,
U.S.A.
$2.50 at McDonalds?
#7Consumer Suggestion
Fri, January 25, 2008
Why would you sue a debit card for that small amount of money anyway. If you don't have 2.50 you don't need it. I take aout cash every month, not much around $40. then when I go to buy something - espically at a fast food place I PAY CASH
