RustyOrgan
Joined: August 02, 2006 at 05:01 AM UTC
Posts: 1518
Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 03:37 PM UTC
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This just happened to me. As of today I'm out $175 ($35 x 5) and I have ANOTHER 4 or so incoming $35 overdraft charges. Keep in mind that at no time did my account ever go into overdraft! Bank of America is now charging overdraft fees when items go into PENDING and not when they POST as the bank has done previously. Therefore their online banking gives an inaccurate snapshot of current activity.
For instance - Let's say you have $10 in your account and you purchase a $12 lunch. Once back in the office you check your online banking and see that the $12 pending charge would put you into overdraft. On the way home you make a $20 cash deposit to cover the pending charge. In the past this would not have incurred any overdraft fees - this is no longer the case! Now Bank of America charges the $35 as soon as the purchase is made regardless of whether or not it will eventually post or fall off as some authorizations are later reversed such as when a restaurant authorizes your account for an anticipated tip or when a gas station puts a temporary hold on your card.
I called Bank of America and they basically told me to "Take off, you hoser!"
The consumerist has a nice article on this deceptive practice:
http://consumerist.com/tag/overdrafts/?i=5011987&t=bank-of-america-lets-charge-three-overdraft-fees-to-the-account-flush-with-cash I'm going to try my luck at writing a letter as it worked in a similar situation:
http://consumerist.com/5009230/polite-letter-gets-bank-of-america-to-refund-overdraft-fees
Relaxer
Joined: October 15, 2001 at 05:01 AM UTC
Posts: 5410
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 03:38 PM UTC
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This is so easily solved. Just always have a billion dollars in your account, and you never have to worry about pesky fees.
brokensocscene
Joined: December 12, 2005 at 06:01 AM UTC
Posts: 9016
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 03:43 PM UTC
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Rusty, you are not out $175 YET since you have ZERO BALANCE RIGHT NOW! But you will be once put your next paycheck in there :D :eek:
elj
Joined: October 09, 2003 at 05:01 AM UTC
Posts: 5970
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 03:53 PM UTC
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Originally posted by RustyOrgan:
For instance - Let's say you have $10 in your account and you purchase a $12 lunch. Once back in the office you check your online banking and see that the $12 pending charge would put you into overdraft. On the way home you make a $20 cash deposit to cover the pending charge. In the past this would not have incurred any overdraft fees - this is no longer the case! Now Bank of America charges the $35 as soon as the purchase is made.
This sounds entirely fair to me. If you don't have any money and want to wait to pay, then use a credit card.
Rhett Miller
Joined: November 15, 2001 at 06:01 AM UTC
Posts: 17762
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 03:57 PM UTC
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What is "overdraft"?
RustyOrgan
Joined: August 02, 2006 at 05:01 AM UTC
Posts: 1518
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 03:57 PM UTC
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I'm just saying that when a bank makes a change such as this they should put some effort into informing their customers. Bank of America is always barraging us with offers we have to either accept or decline but when it comes to important policy changes such as these, they try to keep it as quiet as possible. If you read the Consumerist article I think you'd get a better idea of the practice.
RustyOrgan
Joined: August 02, 2006 at 05:01 AM UTC
Posts: 1518
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 03:59 PM UTC
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Originally posted by wanderlust j. marshmallow:
Rusty, you are not out $175 YET since you have ZERO BALANCE RIGHT NOW! But you will be once put your next paycheck in there :D :eek:
That's the thing though! At no time was my account balance zero!
godsshoeshine
Joined: September 18, 2003 at 05:01 AM UTC
Posts: 4826
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:01 PM UTC
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something similar happened to me with chevy chase and they reversed it
miss pretentious
Joined: April 23, 2007 at 05:01 AM UTC
Posts: 1775
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:13 PM UTC
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I'm wondering why you would purchase a $12 lunch if you knew you only had $10 in your account.
You know, that's why they have internet banking and whatnot.
Rhett Miller
Joined: November 15, 2001 at 06:01 AM UTC
Posts: 17762
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:21 PM UTC
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ding ding ding
If I had $10 in my account, I'd be trolling the trash for scraps, not buying a $12 lunch.
Originally posted by miss pretentious:
I'm wondering why you would purchase a $12 lunch if you knew you only had $10 in your account.
You know, that's why they have internet banking and whatnot.
elj
Joined: October 09, 2003 at 05:01 AM UTC
Posts: 5970
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:22 PM UTC
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Originally posted by miss pretentious:
I'm wondering why you would purchase a $12 lunch if you knew you only had $10 in your account.
Exactly! Just because your bank has, out of their infinite largesse, not charged you before when you spent more then you had in your account if you fixed it quickly, doesn't mean they're rat bastards for doing to now.
Imagine the good old days when there were no banks and you had to pay cash for anything: what do you think would've happened when you tried to buy a $12 lunch with only $10 to your name?
elj
Joined: October 09, 2003 at 05:01 AM UTC
Posts: 5970
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:23 PM UTC
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Also, as a sexual assault survivor, I find it offensive that "rape" is downgraded by being likened to the charging of a $35 insufficient funds fee.
sweetcell
Joined: July 18, 2006 at 05:01 AM UTC
Posts: 22608
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:25 PM UTC
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BofA is really, really fee-happy. i tried calling BofA to reverse overdraft charges, and their line was "those fees are stated in the terms of service so you signed up for them". can't fault them, really, other than having horrible terms of services. what exactly am i getting for those $35?!? it's almost exploitation. i closed my accounts there. unfortunately, other banks aren't that much better. at least i get no ATM fees at PNC, which is a plus.
Originally posted by RustyOrgan:
I called Bank of America and they basically told me to "Take off, you hoser!"
must of thought you were canadian. how embarrassing for us.
Originally posted by miss pretentious:
I'm wondering why you would purchase a $12 lunch if you knew you only had $10 in your account.
when it happens to me, it's because i don't have enough money in my
checking account. also, sometimes charges take a while to appears on your card… so you look online in the morning, see you have $$$, go buy something, then a charge from a few days back emerges, and all of a sudden you're in the red and out $35. sucks.
i also have a joint card with the missus, and if one of us uses it without telling the other, buying $50 of groceries can end up costing us $85. sweet.
RustyOrgan
Joined: August 02, 2006 at 05:01 AM UTC
Posts: 1518
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:28 PM UTC
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You guys are fucking retarded. Read that Consumerist article… I don't think you can grasp the complexity of the situation!!
RustyOrgan
Joined: August 02, 2006 at 05:01 AM UTC
Posts: 1518
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:30 PM UTC
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When I raped that dude he described it in the police report as akin to his dealing with Bank of America and SPECIFICALLY SIGHTED their $35 fees. True story.
miss pretentious
Joined: April 23, 2007 at 05:01 AM UTC
Posts: 1775
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:32 PM UTC
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Originally posted by RustyOrgan:
You guys are fucking retarded. Read that Consumerist article… I don't think you can grasp the complexity of the situation!!
Actually, you are retarded for spending more money than you have. Be a big boy and learn how banks and money work.
<img src="
http://icanhascheezburger.files.wordpress.com/2007/03/specialcat-pam.jpg?w=604&h=422" alt=" - " />
Also, you should probably brown bag it tomorrow.
elj
Joined: October 09, 2003 at 05:01 AM UTC
Posts: 5970
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:32 PM UTC
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Originally posted by RustyOrgan:
SPECIFICALLY SIGHTED their $35 fees.
"Right there, officer, number 3 in the lineup. That's the $35 who touched me!"
miss pretentious
Joined: April 23, 2007 at 05:01 AM UTC
Posts: 1775
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:33 PM UTC
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Originally posted by RustyOrgan:
When I raped that dude he described it in the police report as akin to his dealing with Bank of America and SPECIFICALLY SIGHTED their $35 fees. True story.
cited?
vansmack
Joined: October 04, 2001 at 05:01 AM UTC
Posts: 19725
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:45 PM UTC
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While I don't symapthize with Rusty's particular situation, I do know what the article is talking about (and it's NOT rusty's sitch).
I've been a happy BofA customer for 20 years, but I have seen this change described by consumerist. Recently, we switched the majority of our savings cash to ING (better interest rate). When Smackette and I bought a new car (on a Saturday), we wrote the check and while waiting for the car to be brought around, we transferred the money from ING to BofA (Saturday afternoon). The money was transferred from ING that evening. Toyota deposited the check at around noon PT on Monday.
BofA decided not to post the transfer until COB Monday, depsite having the money in their possession and left in pending for two days.
BofA refused to honor the check and dinged us for $35 (which of course we didn't pay after a polite phone call). Toyota was cool about it and put the check through the next day with no additional charge. They said BofA does stuff like this all the time - their theory is that BofA's computers are programmed to find instances like this to make money.
My advice to those of you living pay check to paycheck is to (1) find another bank or (2) pay the $30 fee for overdraft protection and get a free BofA credit card with a low limit to use soley for overdraft protection. They'll get their $30 one way or another, but at least you can limit the damage.
RustyOrgan
Joined: August 02, 2006 at 05:01 AM UTC
Posts: 1518
Re: Consumerist: Bank of America Changes Overdraft Policy To
June 11, 2008 at 04:50 PM UTC
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Originally posted by vansmack:
While I don't symapthize with Rusty's particular situation, I do know what the article is talking about (and it's NOT rusty's sitch).
I've been a happy BofA customer for 20 years, but I have seen this change described by consumerist. Recently, we switched the majority of our savings cash to ING (better interest rate). When Smackette and I bought a new car (on a Saturday), we wrote the check and while waiting for the car to be brought around, we transferred the money from ING to BofA (Saturday afternoon). The money was transferred from ING that evening. Toyota deposited the check at around noon PT on Monday.
BofA decided not to post the transfer until COB Monday, depsite having the money in their possession and left in pending for two days.
BofA refused to honor the check and dinged us for $35 (which of course we didn't pay after a polite phone call). Toyota was cool about it and put the check through the next day with no additional charge. They said BofA does stuff like this all the time - their theory is that BofA's computers are programmed to find instances like this to make money.
My advice to those of you living pay check to paycheck is to (1) find another bank or (2) pay the $30 fee for overdraft protection and get a free BofA credit card with a low limit to use soley for overdraft protection. They'll get their $30 one way or another, but at least you can limit the damage.
My situation is EXACTLY the same as the one in the Consumerist article. Maybe i used a poor example as an illustration..
