What’s wrong with this picture?
First of all, when I went online to check my account balance on 7/24 there was no “-$135.00″ for Check 123, which means everything was just dandy. But, apparently, when someone cashes a check of yours it may not be posted for several days AND when it eventually does post it can show up earlier on the timeline, at the time the person cashing the check brought it to the bank. So when I checked my account on 7/27 there was a mysterious check, which, though it slipped into the timeline at 7/24, did not show up on my online banking account until 7/27. This means that everything I spent on and after 7/24 is now slapped with a–gasp–$35.00 overdraft fee. Yes, okay, this only happened because I stupidly forgot about a check that I had written out earlier that month, but, way to capitalize on my slip-up Bank of America. Is that customer service?
Furthermore, if you look closely you’ll notice that the payment subtractions are neatly ordered from highest to lowest amount, as opposed to the natural timeline in which they occured. This ensures that Bank of America can slap you with the maximum number of overdraft fees. For instance, if you have $500 on your account, and these four charges: $490, $11, $5, and $4, they can give you three overdraft charges if they charge them in that order—never mind whether that was the order in which you actually used your card. For example, say you bought something for $4, then $11, then $5, and then $490. That should only give you one overdraft fee, because you didn’t go into the negative until your last purchase. But if you made all those purchases in one day, “customer-friendly” Bank of America will neatly rearrange the payments to give you three overdraft fees. At $35.00 per fee, that’s a $105.00 slap in the face.
So, that’s how they screwed me. Yes, I screwed up first… but, still, is it fair? Is it even legal? It certainly isn’t good customer service. In the end, they hit me with $245.00 in overdraft fees for one weekend.
And, oh yea, when I went to check my account on 7/25 the Bank of America website was experiencing technical difficulties and I couldn’t see my pending items. The customer service lady later told me on the phone that I should have called and checked my balance over the phone because “you shouldn’t just expect the online banking system to work all the time.”
Lastly, check this out.
Wow, that if F’ed. Sorry that happened to you..
On a side note, I got this site some traffic yesterday while wearing my idtik shirt! haha
I cannot believe this story Phil. Bank of America is so ridiculous and you should not rest until you get your money back!
I have another question about this whole scenario. How does it make any sense to incur a $35 overdraft fee for trying to make a purchase for $6.48?? That’s a 540% charge on top of the $6.48 itself.
I will now start bashing B of A publicly as much as I can
http://www.cnbc.com/id/32355831
US Banks to Make $38 Billion From Overdraft Fees
Published: Monday, 10 Aug 2009 | 5:33 AM ET
Text Size
By: Reuters
Banks in the United States are poised to make $38.5 billion in customer overdraft fees this year, the Financial Times said, citing research by Moebs Services.
A large portion of the revenue is likely to come from the most financially stretched consumers, according to the paper.
It said the research showed that many banks have increased charges on overdrafts and credit cards in order to boost profits.
The median bank overdraft fee rose this year by one dollar to $26, the paper said, citing the Moebs data.
“Banks are returning to a fee-driven model and overdraft fees are the mother lode,” Mike Moebs, the company’s founder was quoted by the paper as saying.
Overdraft fees accounted for more than 75 percent of service fees charged on customer deposits, the paper cited Moebs as saying.
Last year the U.S. Federal Reserve approved credit card rules to curb “unfair” practices such as surprise fees and interest rate hikes, and new mortgage lending rules are expected this summer.
It is also mulling rules to give bank customers the chance to opt out of overdraft schemes that can involve fees.
Yes!! Come on Government! Make it happen!
Thanks for the link Dave. I guess I gotta keep researching to see if there’s any progress…
You should tweet this post to http://twitter.com/BofA_Help
I hate BofA too — too bad there are so many convenient locations…otherwise I’d give the heave-ho!
Philipp, I think the real question is how exactly did you spend $59 to the penny at Shaws? That in itself should have saved you from the overdraft charge. Whenever I go, it is always .36 or .78, but I can never get an exact dollar amount. That is impressive!
i had a loan took out 2 years ago with boa and my car was repoed… the car was worth 30,000 and they sold it for like 12,000… it left me a balance of 10,000 and some how now i owe them like 17,000 dollars… they are charging me intrest on a dead loan and have not tried to work with me fairly on paying it off so i said f*** them and never paid anything back… wait 6 years and it all comes off your credit history and starts fresh lol
That is nothing!!!! I set an autopay of 200 per month and canceled the account because they raised the interest. I then just paid off the card. They continued to process the auto pay for over a year and I could not cancel it because there online system had no record of it. There customer support had no record of it. Yet they sent me checks for the amount every few months. I finally found a programer who found the code and removed it. Customer support said it was my fault!!!
Well, I can top all of that. Bank of America consistently is losing staff, which is weird because they are supposedly a really profitable company. So you would think that people would be lining up outside to work for them…., wrong. Apparently they pay peanuts. So a ‘well-trained’ BofA teller deposited a check into my business account, mailed to the branch from overseas (red-flag), in foreign currency (red-flag), from God-knows where (red-flag) and they put it into my account with no hold. Because as they say we are a ‘good customer’. Well we never see the check which is precisely what the scammer is hoping for. We would immediately recognize the check is fraudulent (drawn on an account we have no business relationship with). When we look at it online it looks like cash has been wired into our account (no hold), (instantly available funds), just like a wire transfer. We do not accept checks, which a banker ought to make an effort to know, understand their customers business. The account she deposited the funds into is our wire account and it is labeled as such in BofA’s system. Asked why we were not called, did it not look suspiscious she responded, ‘I was going to call you, I just got busy and it slipped my mind’. So to make a long story short, the Bank overseas finally figures out the check is forged and BofA simply goes into our account and takes over $100,000 and gives it back to them. They do not even so much as ask us, what kind of loss we have been exposed to because of their negligence. It is not my responsibility to determine if a check is forged, that is the banks responsibility. That is why holds are placed on checks. It took over two weeks for them to figure out the check was fraudulent. The final cost for this little bit of fun was $66,000 and we are now suing BofA to try and recover it. If you bank with BofA it is only a matter of time before you will suffer economic harm. These people are not only incompetent, but they do not care about protecting their account holders, only themselves.