- Report: #383954
Complaint Review: TEXANS CREDIT UNION - Richardson Texas
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TEXANS CREDIT UNION
777 East Campbell Rd. Richardson, 75081 Texas, U.S.A.
Phone:
972-348-2000
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TEXANS CREDIT UNION Overdraft Charges for "pretend" pending debit card transactions Richardson Texas
I find it completely unethical that TCU has now adopted the practice of charging overdraft fees for temporary pending debit transactions. I say temporary because when a rental car company or a hotel swipes your debit card, they do it for about three times the actual charge. It reduces your available balance by much more than you will actually be charged for. It is a temporary hold that lasts for 24 hours.
However, during the 24 hours that the funds are held for the temporary hold, TCU is charging overdraft fees for each item presented in that time frame if the temporary hold took your account into a temporary negative balance. There has never been a problem with this method until 2007 when pending transactions reduced available balances and resulted in overdraft charges.
I question the legality and the intentions of this new practice. I feel that it is in place to generate more fees per customer. Yes, I have the money to cover the actual charge but not the temporary hold that is three times greater. The temporary hold that I had recently was for hotel and rental car and totaled $950.00. When the items actually posted several days later, the total of charges was $422. In 24 hours when the hold is released I have been charged several overdraft fees and I never really overdrawn my account. Therefore when the real (much lower) hard debit posts there is another overdraft charge because now the balance is significantly lower due to all of the charges and the real transactions are paid with a charge. I question what the charges were for....to pay a few items against a pretend negative balance. While I'm on this subject, since when is it legal to charge someone $35 for a $2.00 loan? I just cannot find the justification for all of these fees.
I am appalled at the new tactics EVEN credit unions are taking to be part of the 17 billion overdraft industry.
Even though I fought for a solid week and received had all of my charges refunded I am still going to the state department with this one. They maintained their stance of "the charges were justified" even though they refunded all of them. I just don't want this to be an acceptable practice. Hopefully I will find some resolution.
Therese
McKinney, Texas
U.S.A.
However, during the 24 hours that the funds are held for the temporary hold, TCU is charging overdraft fees for each item presented in that time frame if the temporary hold took your account into a temporary negative balance. There has never been a problem with this method until 2007 when pending transactions reduced available balances and resulted in overdraft charges.
I question the legality and the intentions of this new practice. I feel that it is in place to generate more fees per customer. Yes, I have the money to cover the actual charge but not the temporary hold that is three times greater. The temporary hold that I had recently was for hotel and rental car and totaled $950.00. When the items actually posted several days later, the total of charges was $422. In 24 hours when the hold is released I have been charged several overdraft fees and I never really overdrawn my account. Therefore when the real (much lower) hard debit posts there is another overdraft charge because now the balance is significantly lower due to all of the charges and the real transactions are paid with a charge. I question what the charges were for....to pay a few items against a pretend negative balance. While I'm on this subject, since when is it legal to charge someone $35 for a $2.00 loan? I just cannot find the justification for all of these fees.
I am appalled at the new tactics EVEN credit unions are taking to be part of the 17 billion overdraft industry.
Even though I fought for a solid week and received had all of my charges refunded I am still going to the state department with this one. They maintained their stance of "the charges were justified" even though they refunded all of them. I just don't want this to be an acceptable practice. Hopefully I will find some resolution.
Therese
McKinney, Texas
U.S.A.
1 Updates & Rebuttals
Sallen1985
Fort Worth,Texas,
U.S.A.
There is no way
#2Consumer Suggestion
Fri, December 19, 2008
for your credit union to know the actual amount of the charge. I am an employee of another similar credit union in Texas and can attest to this fact. When the merchant submits the amount to be held, THAT is the amount you are authorizing on your account. They are required to tell you the amount they are holding and those funds, while on hold, ARE NOT AVAILABLE for other purchases or transactions. The credit union has very limited information available to them from the merchant you are dealing with. We can ONLY go by the amount that they submit for authorization. Whether or not this is the amount that will actually clear your account is not evident until days later, when they clear the payment. I must emphasize this - they let you know, at the time that they swipe your card, the amount they will be holding on your account. If this is not the amount you are paying them, DO NOT authorize the charge. Or, make sure that you don't have any other outstanding transactions that this charge will compromise. Don't tell that merchant that the amount is fine and then expect to be refunded your fees later. We're not responsible for transactions that you've given permission for.
