- Report: #343115
Complaint Review: Wachovia - Nationwide
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Wachovia
www.wachovia.com Nationwide, U.S.A.
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Wachovia Usurious NSF/ Unavailable Funds fees and practices Nationwide Nationwide
Wachovia's practices regarding NSF fees are getting out of hand. Here's the rundown:
Prior to Friday, 6/20, I made three small purchases ($7.76, $7.72 and $4.90). The balance in the account prior to making the purchases was $24.16.
On Friday, 6/20, at 4:45 PM, I made a deposit of $600 at an ATM. The receipt showed an available balance of $103.78 (the original $24.16, minus the three purchases, plus the $100 made available immediately for ATM deposits). I also called Wachovia to verify this amount and was told that yes, $103.78 was the correct amount.
At 5:20 PM, I went to the grocery store and spent $44.26. Later that evening, at 8:16 PM, I went to the store and spent $32.29.
The next morning I checked online and found that I had been assessed $105 in NSF/Unavailable funds fees. According to Wachovia, these fees are the result of the three small purchases being made after the holds for the $44.26 and $32.29 purchases had been placed on the account, but before the deposit had been credited.
One of the rationales offered by Wachovia for all this was that there are different cutoff times for deposits and purchases. That is, any deposit made after 3:00 PM would be credited as of the next business day, whereas a purchase made after 8:00 PM would be debited as of the next business day. However, holds against debit card purchases are immediate. This means that the holds for the purchases brought the available balance into the negative, thus justifying the NSF fees, even though the actual posted balance was still $3.78. In addition, the $100 that is made available immediately for ATM deposits is for cash withdrawals only and does not apply to check card/debit card purchases.
So, according to Wachovia, the sequence of events was:
Purchases of $44.26 and $32.29 made against account via VISA check card. These funds were put on hold against an account that had a balance of $24.16, bringing the available balance to -$53.39, even though the posted balance remained unchanged.
Deposit of $600 made. $100 of that made available immediately, pursuant to Wachovia policies for ATM deposits. This brings the available balance to $46.61 and the posted balance to $546.61. However, since the available balance applies to cash withdrawals only, the actually available balance at this point for debit card purchases is still -$53.39.
Purchases of $7.76, $7.72 and $4.90 posted against this negative balance, bringing the available balance to -$73.77 and the posted balance to $3.78.
NSF/Unavailable funds fees of $105 assessed against the account, bringing the available balance to -$178.77 and the posted balance to -$101.22.
However, the actual sequence of events is:
6/18/2008: Three purchases made for $7.76, $7.72 and $4.90. Holds placed on the account, bringing the available balance to $3.78 and the posted balance to $24.16.
6/20/2008: Three purchases from previous day posted to account. Available balance and posted balance are both $3.78.
6/20/2008 4:45 PM: Deposit of $600 made at ATM. $100 made available immediately, which is reflected on the ATM receipt. A subsequent call to Wachovia customer service verifies this. At no point is it mentioned that the $100 applies only to cash withdrawals.
6/20/2008 5:20 PM: Purchase made at Genuardis grocery store for $44.26.
6/20/2008 8:16 PM: Purchase made at Acme grocery store for $32.29.
6/21/2008: Checking online shows the $105 NSF fees. A call to Wachovia (over an hour on the phone) gets only lengthy explanations as to why the fees are justified, and an offer of a courtesy refund of 10% ($11) of the NSF fees. This offer is refused.
6/23/2008: A visit to a local branch and a discussion with the bank manager, resulting in an offer of a refund of of the NSF fees ($53.00). This offer is accepted, even though I am not at all happy about it. When the branch manager is told that we will be closing the account and taking our business elsewhere, the response is basically "So what?" (NOTE: this is not a direct quote).
To summarize, Wachovia has perfected the art of collecting usurious fees from its customers by tweaking their definitions to avoid violating the precise letter of their own customer service agreement. By any reasonable standard, the fees charged against us are not in any way justified, yet we spent three days arguing with Wachovia in order to get only half of them returned.
Wachovia's practices cannot legally be defined as fraud, as they have covered themselves by putting this in the fine print of the "Welcome Package" we got five years ago (it's our own fault for allowing this document to be in our basement when it flooded two years ago assuming, of course, that we still had it after moving three times). This allows Wachovia to take the legally defensible position that we were notified of these practices beforehand and entered into a relationship with them with eyes wide open. However, these practices are definitely not designed in the interest of maintaining good customer relations.
If you are currently a Wachovia customer, my advice would be to run, not walk, away from them as fast as possible. If you are not, but considering it, then think again.
Dave
Collegeville, Pennsylvania
U.S.A.
Click here to read other Rip Off Reports on Wachovia Bank
Prior to Friday, 6/20, I made three small purchases ($7.76, $7.72 and $4.90). The balance in the account prior to making the purchases was $24.16.
On Friday, 6/20, at 4:45 PM, I made a deposit of $600 at an ATM. The receipt showed an available balance of $103.78 (the original $24.16, minus the three purchases, plus the $100 made available immediately for ATM deposits). I also called Wachovia to verify this amount and was told that yes, $103.78 was the correct amount.
At 5:20 PM, I went to the grocery store and spent $44.26. Later that evening, at 8:16 PM, I went to the store and spent $32.29.
The next morning I checked online and found that I had been assessed $105 in NSF/Unavailable funds fees. According to Wachovia, these fees are the result of the three small purchases being made after the holds for the $44.26 and $32.29 purchases had been placed on the account, but before the deposit had been credited.
One of the rationales offered by Wachovia for all this was that there are different cutoff times for deposits and purchases. That is, any deposit made after 3:00 PM would be credited as of the next business day, whereas a purchase made after 8:00 PM would be debited as of the next business day. However, holds against debit card purchases are immediate. This means that the holds for the purchases brought the available balance into the negative, thus justifying the NSF fees, even though the actual posted balance was still $3.78. In addition, the $100 that is made available immediately for ATM deposits is for cash withdrawals only and does not apply to check card/debit card purchases.
So, according to Wachovia, the sequence of events was:
Purchases of $44.26 and $32.29 made against account via VISA check card. These funds were put on hold against an account that had a balance of $24.16, bringing the available balance to -$53.39, even though the posted balance remained unchanged.
Deposit of $600 made. $100 of that made available immediately, pursuant to Wachovia policies for ATM deposits. This brings the available balance to $46.61 and the posted balance to $546.61. However, since the available balance applies to cash withdrawals only, the actually available balance at this point for debit card purchases is still -$53.39.
Purchases of $7.76, $7.72 and $4.90 posted against this negative balance, bringing the available balance to -$73.77 and the posted balance to $3.78.
NSF/Unavailable funds fees of $105 assessed against the account, bringing the available balance to -$178.77 and the posted balance to -$101.22.
However, the actual sequence of events is:
6/18/2008: Three purchases made for $7.76, $7.72 and $4.90. Holds placed on the account, bringing the available balance to $3.78 and the posted balance to $24.16.
6/20/2008: Three purchases from previous day posted to account. Available balance and posted balance are both $3.78.
6/20/2008 4:45 PM: Deposit of $600 made at ATM. $100 made available immediately, which is reflected on the ATM receipt. A subsequent call to Wachovia customer service verifies this. At no point is it mentioned that the $100 applies only to cash withdrawals.
6/20/2008 5:20 PM: Purchase made at Genuardis grocery store for $44.26.
6/20/2008 8:16 PM: Purchase made at Acme grocery store for $32.29.
6/21/2008: Checking online shows the $105 NSF fees. A call to Wachovia (over an hour on the phone) gets only lengthy explanations as to why the fees are justified, and an offer of a courtesy refund of 10% ($11) of the NSF fees. This offer is refused.
6/23/2008: A visit to a local branch and a discussion with the bank manager, resulting in an offer of a refund of of the NSF fees ($53.00). This offer is accepted, even though I am not at all happy about it. When the branch manager is told that we will be closing the account and taking our business elsewhere, the response is basically "So what?" (NOTE: this is not a direct quote).
To summarize, Wachovia has perfected the art of collecting usurious fees from its customers by tweaking their definitions to avoid violating the precise letter of their own customer service agreement. By any reasonable standard, the fees charged against us are not in any way justified, yet we spent three days arguing with Wachovia in order to get only half of them returned.
Wachovia's practices cannot legally be defined as fraud, as they have covered themselves by putting this in the fine print of the "Welcome Package" we got five years ago (it's our own fault for allowing this document to be in our basement when it flooded two years ago assuming, of course, that we still had it after moving three times). This allows Wachovia to take the legally defensible position that we were notified of these practices beforehand and entered into a relationship with them with eyes wide open. However, these practices are definitely not designed in the interest of maintaining good customer relations.
If you are currently a Wachovia customer, my advice would be to run, not walk, away from them as fast as possible. If you are not, but considering it, then think again.
Dave
Collegeville, Pennsylvania
U.S.A.
Click here to read other Rip Off Reports on Wachovia Bank
6 Updates & Rebuttals
Shon
York,Pennsylvania,
U.S.A.
NSF/overdraft fees
#2Consumer Suggestion
Thu, July 17, 2008
My husband and I have been with Wachovia for approximately 4-5 years within the last two to two a half years everytime we turn around we are hit with overdraft fees. I daily monitor our spending and our online account and still get overdraft fees. I have read through alot of comments from certain people that make is sound like everyone that get's hit with overdraft fees do not know how to manage their account WRONG. Wachovia also has had us $70-$100 short on our account. When I went and sat down with them and tried to figure out where this money was of course it was that I did not know how to balance my checking account. After sitting with the lady at the bank and watching her, she enter in an amount wrong and then stated that she found the problem. I stated to her that she entered in the amount wrong and that my account was right. She stated very rudely "oh well would you like a calculator to do it with me then" and I stated yes I think that, that would be a novel idea, surprising her. Her and I sat for almost two hours and she could not find any errors on my book. She stated to me that she didn't know how they had us $70-100 short in their computer. Not like they would bring their account up to my account amount of course not. I have also read a posting stating that it seems like they watch to see if there is an account is low and then process checks or what not to overdraft that person I thought the same thing. It does seem that way when there is enough money in your account things seem to process at lot slower, but if there is just enough money in to cover your bills for that pay then things process very fast. Monday I paid my loan at another facility, which is normal for me to pay it a day before it is due, that check will normally take 3-4 days before I see it processed in my account online, not this time it processed the very next day sending us into an overdraft, We get paid every two weeks so I know which bills will be paid that pay, so I had enough in our account to pay for the bills during that pay period, my loan check was for this pay check, which our payroll goes through Weds after midnight. This morning when I checked there was another bill that was due yesterday that processed very fast again and two small purchases had went through creating another $140 overdraft fee for a total of $315.00. If those to payments NOT the purchases would of went through prior to us being paid last evening we would of not had a overdraft fee. On top of all this back July 2nd I recieved a copy of my one check from a business that I had paid stating that they could not find my account. After reviewing the copy of my check it was clear that someone had entered our routing number in wrong switching two of my numbers due to this my account at this other company got charged a $25.00 return check fee. Of course the company said it wasn't their fault that it was my banks faught and of course my bank (Wachovia) said that it was not their fault. After going back and forth on the phone between Wachovia and this other business, Wachovia finally calls me Friday and states that the error maybe on their end. I said okay if it is on your end then will you credit me the $25.00 that I got charged for your mistake and the lady stated no. So here we are being charged for someone elses mistake. The lady from Wachovia stated that they are still investigating it and this was almost a week ago and we still have yet to hear anything back. Now I find it amazing that my own bank cannot find my account when they have my routing number and my account number, name etc how can you not find your own customer's accounts. Of course I'm sure that there will be replys to my rebuttal of course saying that it is our fault and that we should better watch what we spend and not the banks fault etc., reading some of the other comments saying pretty much the same thing it really sounds like these people work for the banks and of course will put it on the little people. Bottom line is that I DO WATCH our SPENDING and how much is in our account and I balance our check book ALL THE TIME.
Striderq
Columbia,South Carolina,
U.S.A.
I agree with your complaint...
#3UPDATE Employee
Tue, June 24, 2008
Any deposit made after 4 PM local time through an ATM wll post the next business day. However, as you stated $100 will show as available. Unfortunately if you use any of this $100 to purchase anything the same day as the deposit it can cause fees. I sorry this happened to you and this is something that many Phone Service Representatives have told management needs to be changed. Until and unless it is changed the only thing I can suggest is that if you make an ATM deposit after 4 PM, do not use your card to make a purchase against that money until the next day.
Striderq
Columbia,South Carolina,
U.S.A.
I agree with your complaint...
#4UPDATE Employee
Tue, June 24, 2008
Any deposit made after 4 PM local time through an ATM wll post the next business day. However, as you stated $100 will show as available. Unfortunately if you use any of this $100 to purchase anything the same day as the deposit it can cause fees. I sorry this happened to you and this is something that many Phone Service Representatives have told management needs to be changed. Until and unless it is changed the only thing I can suggest is that if you make an ATM deposit after 4 PM, do not use your card to make a purchase against that money until the next day.
Striderq
Columbia,South Carolina,
U.S.A.
I agree with your complaint...
#5UPDATE Employee
Tue, June 24, 2008
Any deposit made after 4 PM local time through an ATM wll post the next business day. However, as you stated $100 will show as available. Unfortunately if you use any of this $100 to purchase anything the same day as the deposit it can cause fees. I sorry this happened to you and this is something that many Phone Service Representatives have told management needs to be changed. Until and unless it is changed the only thing I can suggest is that if you make an ATM deposit after 4 PM, do not use your card to make a purchase against that money until the next day.
Striderq
Columbia,South Carolina,
U.S.A.
I agree with your complaint...
#6UPDATE Employee
Tue, June 24, 2008
Any deposit made after 4 PM local time through an ATM wll post the next business day. However, as you stated $100 will show as available. Unfortunately if you use any of this $100 to purchase anything the same day as the deposit it can cause fees. I sorry this happened to you and this is something that many Phone Service Representatives have told management needs to be changed. Until and unless it is changed the only thing I can suggest is that if you make an ATM deposit after 4 PM, do not use your card to make a purchase against that money until the next day.
Michael
Woodbridge,Virginia,
U.S.A.
Some Questions
#7Consumer Suggestion
Tue, June 24, 2008
I just joined Wachovia, although I try to keep at least 100 bucks in checking at all times. Did you use your PIN number at any time? I am guessing yes on the June 20th purchases since you stated they are debited immediately, and credits usually take an extra day to post. I will have to read the policies when I get home (I got it yesterday when my check card arrived) but I find the deposit more intriguing. You mentioned the 3 PM cutoff, and stated that you deposited it at 4:45 PM, after the cutoff (3 PM is way too early in my opinion, Bank of America went to 8 PM at the ATM). Did the $100 get credited Friday night, or was your entire deposit credited Monday night? Sometimes new customers don't get as many "advantages" as people that have a relationship with the bank for years. You stated you have been with them at least 5 years, so there goes that idea. Mike Washington, DC
