I just got off the phone with an IBM bank representative and I'm upset. I was charged an overdraft fee for a preauthorized payment that has not posted. I did not have enough money in the bank to cover the pending transanction until 5:00 am tosay 2/23/17.
I can see the overdraft pending along with the preauthorized debit from a mechant. The bank rep told me that the funds were preauthorized at 2:29 am on 2/23/17.
I had a direct deposit that came in at 5:00 am which cover the preauthorized charge. I have overdraft privilege on my account in which I do not want.
I was told that I had no choice. My only option is to sign up for the bank's credit card. My problem with the overdraft fee is due to the fact that money is not released to merchants 3 days after preauthorization.
I recorded my coverssation with the bank representative. The lady told me that my preauthorization is pending for today 2/23/17 and will not be released to the merchant unti 2/26/17. Why am I being charged for funds that have not been released?
Region's bank just paid $7.5 million last year because of overdraft fees. They charged their members unknowing, but IBM is forcing overdraft privilege. I was told I would be charged with or without overdraft, but I still don't have have a choice?! I'm confused.
I will be closing my account soon. I have another bank who gives me the option to choose whether or not if I want overdraft privilege.
I do not have overdraft privilege with Georgia's Own Credit Union. Any debits to my account will be denied due to insufficent funds if money is not available. That is how banking should be.
IBM charged me with 5 different overdraft fees which in which 4 was clearly not my fault this year. 3 came from the banks itself and one from paypal. Paypal sent a letter of explanation and sent the money back, and the bank refused to reverse the overdraft charge.
I put money in my account overnight around 10pm one evening to cover charges that would post to my account the next day. I had enough money to cover all transanctions and was charged $32 for 2 different debits.
A bank representative told me that my debit came in before I deposited my money. The bank I went to had a night drop. I did not have the option to feed money into the ATM.
Therefore I took pictures and checked my balance to get a reciept to prove I was at the bank. The bank refused to reverse my fees until I told them I had proof.
Why does this feel so wrong? I already pay $1.90 for what was suppose to be free checking years ago when I opened the account in 2008, but later explained that the $1.90 was a monthly service fee.
It seems like banks are finding clever ways to take money from consumers. It's bad enough they make about 6% off our money sitting in their banks and give us as low as 0.02%. This bank is a rip off.
Robert
Irvine,#2Consumer Comment
Fri, February 24, 2017
Sorry but the Overdraft fee is valid and is legal. As you did not currently have the money available when the debit was authorized.
You are mistaken on the "Overdraft Privilege". What you are most likely referring to is the DEBIT Card Overdraft Opt-In. That is that unless you opt-in to the Overdraft Privilege, if at the time you attempt to use your Debit card at a Point of Sale or ATM you do NOT have the funds available it will be declined.
But once it is authorized if you later go into Overdraft you can still be assessed OD fees on these transaction. Also...and this is the IMPORTANT part. This never has applied to ACH(Pre-Authorized) transactions or Checks. In these cases the bank has(just like it always did) the OPTION to either pay the transaction or reject it. If they reject it they still per the terms of the account can charge you an NSF fee for the return(which is usually as much as the OD fee). The only difference is that if they decline it you also get a returned check fee from the company that submitted the payment and if this causes you to be late also a late fee and additional interest.
FYI this is how your new bank will work as well.
Just a few other items. Your 10PM deposit was done outside of regular banking hours cut-off time for deposits and would be applied the next banking day..just like your other deposit at 5AM. Your issue with Paypal is between you and Paypal not the bank. In the past banks MAY have accepted letters and waived fees. But they don't anymore. So if Paypal made a mistake...Paypal owes you the fees they caused. But if you think getting the bank to refund an OD fee is hard just wait until you ask Paypal.
So for future reference YOU need to have control and responsibility over YOUR money. It is YOUR account and YOU should be aware of all of your Pre-Authorized debits and make sure that you have enough money to cover them before they come in. If you can not handle that then YOU need to CANCEL them and pay on your own schedule.
By the way if there is anything illegal going on you may have done it. If you live in a Two Party Consent State for recording and failed to get their permission not only is it not a valid recording if you make it known you recorded them they could come back and have you charged with a crime.