Complaint Review: US Bank - Minneapolis Minnesota

If a bunch of checks hit your bank account in one day, the largest SHOULD be taken first. Why? Simple. Which check would you rather have bounce, your $900 mortgage payment or the $20 check you wrote to your grandson for his birthday? Large debits are typically more important. Trust me, there is no hidden agenda at your bank. People that make accusations about their bank when they realize this policy is in effect fail to realize one thing... they let the check go through so now you have one bank fee. If they rejected it, you'd get TWO fees. One from the bank and most likely one from the company you wrote the check to! If anything, you are coming out ahead!

William, I regularly read the ROR of people who overdraft out of an almost sociological interest in understanding (a) the poor money management skills of those who live paycheck to paycheck, and (b)The rationalization that these people use to justify the poor decisions that perpetuate their cycle of debt and poverty. I've bitten my tongue in the past, but your ROR takes the cake in terms of absurd, albeit earnest, examples. Let's begin with your check scenario. Checks 100 104 are floating around out there. Floating is accurate, since the person who wrote these checks drafted them against funds that weren't there to the tune of $100. But let's put that aside for the moment. You suggest that the bank should list these in chronological or numerical order, but choose not to in order to maximize their fees. Think about this for a moment. This assumes that all the checks come in simultaneously, which, in the real world, they won't. For example, check 104 (for $950) might be the very first check submitted, while the other checks are held by the bearers for 5 days to two weeks. In this instance, the bank will honor the first check presented, then the other checks as they are presented, which will overdraw the account sometime in the future. You are suggesting, then, that the bank create some magical device that will let them somehow know about all of the checks you have written. For instance, the minute you tear out an overdrawn check for $20 and hand it to Jim, the bank's magic check machine will know this. Next, you expect the bank to hold every single check as it comes in, honor every check despite the fact they were drawn against unavailable funds, and arrange those checks in a way advantageous to you. Don't you see how this is absurd? How you are stretching credulity simply because the alternative, changing you money management habits, isn't convenient. Your next example is even worse. A woman has $100 in her account, so right off the bat (let's not be polite) she's poor, she's one mistake away from financial ruin. She draws out $80 (smart girl, deal in cash), leaving her w/ $20 in the bank. Next, she buys coffee from Starbucks at $3, which poor people aren't allowed to do. I say allowed because when you only have $20 in the bank, fancy coffee is a luxury. Now, an auto-debit comes through for $150. This is just a cluster!*$# of stupid. She knew the auto-debit was coming out, therefore she should have kept $150 in her account to cover it. This is not an oops, she went online, signed up for auto-debit, and set the date. The woman put the bank in a position where they would have to overdraw her to honor an obligation she made. Next, here's the big one, WHY DOES A POOR PERSON HAVE A $150 CABLE PACKAGE!!!! I know this is an example, but it is a perfect example of why some people live paycheck to paycheck: if you are poor, you are not allowed certain luxuries. I know it seems unfair, but that is life. Look, I was like you. I bounced checks left and right, had hundreds taken out by OD. But I wised up, cut expenses I couldn't afford, moved to an interest bearing account, now, after a year, I've got 5 figures in the bank on a lower middle class income. You can do it. Anyway can. The first step, however, is losing these absurd rationalizations and taking some responsibility.

US Bank, along with other financial institutions makes a majority of it's profit annually from "non-interest" income. This income is generated primarily by NSF fees and Overdraft fees. The first quarter of 2006 US Bank reported Noninterest income 1,614,000 in non-interest income. A "good bank", I think not. Only for the investors. They, like other banks, are sticking it to the little guy and gal. Some of this is the fault of the consumer. You see, daily, 9 of 10 people using a debit or ATM card do NOT stop and write the transaction in their checkbook register and most often throw the receipt at ATM's in the waste bin. Consumers have "forgotten" the fees involved in these transactions. Third party ATM's and merchants charge fees. Whether $0.25 or $1.00 a single fee, forgotten, can overdraw your account. The banks count on this, it is an income generating benefit for them. How else do you think they can provide "free checking"? No business could make a profit or pay operating expenses by allowing you to deposit your money only to spend it before the weekend is up so they have to disburse it to others. The only way to avoid this. Make your deposit, before the banking day closes. DON'T spend a dime until the funds are posted to the account and "available". A deposit will post as a "journal entry" but is generally not available until it has processed and cleared through the ACH. The bank will allow you use of the money as it generates fee income for many accounts. Carry and KEEP an accurate checkbook register and be aware of and include ALL fees for use of an ATM/Debit card. If you are able to write a check for a purchase do so. You are better off, as most merchants do not charge a fee for this. And for the posters who will respond about "float" time, I am not referring to writing a check for funds not already posted to the account. Also, beware of using your ATM/Debit card at a gas pump that does not require a PIN number entry. Most consumers are not aware but many gasoline companies will post a "hold" amount to your account to make sure there are funds available to pay for the gas you pump. Only PIN based debit card transactions check the account to ensure funds are available. The hold amount varies but has been reported to be up to $75.00. Therefore, if you pump $20.00 into the tank, are living paycheck to paycheck, and believe the additional $55.00 is in your account, and spend it, you may find overdrafts and fees charged to your account.

Quote: Here's an example: A customer has $1,000 in his checking account. Check numbers 101 through 104 come in for processing for $60, $10, $30 and $950, in that order. There is $1000 in your account You write checks for $950, $60, $30, and $10 950+ 60+ 30+ 10= ----- 1050 Spent more than you have? Looks like it me! Simple solution-DO NOT spend more than you have and this will never be an issue. 2nd Example: $100 in account $150 Cable Bill (which is reccurring so you MUST know about it) $80 cash withdrawal $15 Gas $3 Coffee --------------- $248 Simple solution-DO NOT spend more than you have and this will never be an issue.

rebuttal of us bank overdraft fees: no matter what Order your checks come in you know if you write a check that money is to be subtricted from your account and if you do not have the money in your account do not write checks. the bank charges a fee for paying that check when you have INF in your account you could be paying a lot more like return check fee + lawer fee and the amount of the check. it is your dutie to balance your account and keep track of your spinding. not the bank!

Bank of America's online banking changed about 2 months ago. They now debit out the payment on the day it is sent out.