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1. MBarrettMiller
   Member Profile

   

   Recently, on 1 October, a friend ordered new checks from his bank.
   He wasn’t paying attention to the pending charge and wound up over drafting his account by $3.31.
   On the 3rd of October he called the bank to tell them he had goofed and there would be a fairly good deposit that coming Thursday the 6th. He informed them that there would probably be around $36.00 worth of charges coming in before he could make the deposit. He was told he would be charged $25.00 plus $8.00 a day until Thursday.
   Outrageous, but manageable!
   On Thursday he went to the bank to make a cash deposit of a few hundred dollars. He didn’t have a deposit slip so the teller had to look him up. While standing there he told the teller he was a few bucks over if that helped her identify his account. After a moment she said she had found the account and he was actually $232.00 overdrawn.
   He was stunned but not too stunned to pass her the cash, which he knew would be used to balance the account. He stepped back asking if she could do a print out, as he had no idea how his account could be in such dire straights.
   She printed him a couple of pages so he could see what was going on.
   Well, there were eight debits at $25.00 a pop and four at $8.00. When he asked one of the people sitting at a desk what was going on he was told those were standard overdraft charges.
   He staggered out of the bank to find a phone and call his branch. When he finally got to an officer he told them there would be a large automatic deposit on the 11th and would they consider reducing the accumulated charges. He was told that was not possible and charges would accrue until the account was back in the black. After a bit of conversation he was told that out of courtesy to his 23 years with the bank they would consider reversing some charges when the deposit arrived.
   On the 11th his automatic deposit came in to be reduced by $328.00 for the accumulated charges.
   He called the bank asking if they could flip the charges to his old line of credit so he could access the full amount of the deposit. He was told no that wasn’t possible. When he asked about reducing the charges he was told that if he looked at his statement they had already reduced them by a considerable amount.
   Okay, lets make this simple; you borrow $30.00 for nine days from your bank. You are okay paying a fee but are you okay paying a total of $328.00 for the pleasure? That converts to a 1,100% interest charge for borrowing $30.00 bucks for nine days!!!!!!!!!!!
   Yes, 1,100 % unless my math is faulty.
   If your bank has a breaching Orca on its masthead you might consider running for your life.
   My friend has ventured over to where the stagecoaches roam in hopes he won’t be crushed by runaway horses.
   1,100 % !!!!!
   The European banks drove the little guy out of the system decades ago. That is why so many in Europe use their local postal office to buy money orders, pay bills, make phone calls etc.
   With the Republicans vowing to take down our Post Office you can see the day when you’ll be banking at a FedX, postal, bill paying, payday check cashing office with a giant symbol of the $ outside where the old flagpole stood welcoming you to the Post Office-
   Ah, anything to protect those who praise money above all. The job creators who only charge you what the market demands of them to turn a profi.t
   Good luck-

   Posted 7 months ago #         

2. shed22
   Member Profile

   The "stagecoach" and the "american flag" are no better. Possibly worse. With that said, these fees are a penalty for mismanagement of ones finances, not usury.

   Posted 7 months ago #         

3. HunterG
   Member Profile

   

   I'm actually looking at moving from the "Running" bank to the no other branches anywhere I know of, across from Thriftway. Anyone have any feed back for them?

   Posted 7 months ago #         

4. WD
   Member Profile

   If you mean the little bank across Fauntleroy from Thriftway... there's also a branch just north of the Alaska Junction. And that bank has problems too, although their workers are really nice people. Their system isn't as advanced as the big banks and I personally had a problem with them sitting on deposits while the debits just whizzed through their system. I've moved to the stagecoach.
   But, be warned: At any banking institution, if you don't have overdraft protection which generally has a small price tag attached, you will be charged daily for an overdraft. Banks have become ruthless and almost predatory in the ways they ding you for fees. Calling won't stop fees, because they've automated their systems to charge fees once the accounts go into overdraft. And, they all post debits before credits... even if a debit and deposit land at exactly the same time.

   Posted 7 months ago #         

5. kootchman
   Member Profile

   How is this the banks fault? You get paperwork with your account.. which in great specificity tells ya what they do if you bounce a check or go into overdraft. The bank manager can override that fee in 10 minutes if you are an established customer. Buy overdraft protection. It costs banks money to do retail banking.

   Posted 7 months ago #         

6. metrognome
   Member Profile

   I am a little confused about how the fees were accrued, but the rate is excessive for the amount involved.

   This is why I use credit unions and have both saving and checking accounts at the same institution. I also established a personal line of credit so I can immediately take out a loan in case of an emergency. As I made a similar, altho less costly mistake, a number of years ago, I use a spreadsheet as my check register and regularly check my balance on-line. As a precaution, I deduct at least $100 from my zero balance so there is some cushion in case of error. I think I also signed up to be notified about low balances, etc. (altho I may be thinking about credit card notifications.)

   kootch has a point, despite his siding with the banks. Most of us don't pay attention to the small print, assuming it won't affect us ... until it does.

   Posted 7 months ago #         

7. kootchman
   Member Profile

   The big print giveth... the small print taketh away. I took the critter in for her first "car loan".... which has a "ghost' checking account should her optimism not meet her intention. Ahh... the paperwork.. so I said to her.. if you don't understand it,..bring it home BEFORE you sign it.... trembling hands of anticipation do not good consumers make. She misses a payment? wait till dad steps in... that will be usury by any definition.

   Posted 7 months ago #         

8. chrisma
   Member Profile

   

   This has been Standard Operating Procedure at every bank that I've ever had an account with, and even my current credit union charges overdraft and returned item fees, and frankly, this is one of the things to ask questions about when setting up an account.

   When I was with B of A, I had overdraft protection tied to my credit card with them, and that worked fine the one or two times it was needed.

   Looks like BECU does something similar, but unlike most institutions, they will decline a debit transaction if you're in overdraft. Paper checks might be a different story though, since more than one institution is usually involved.

   It sucks, but it usually only takes one round of this kind of thing for most people to take sufficient care not to let it happen again.

   Posted 7 months ago #         

9. Yardvark
   Member Profile

   

   I'm actually glad that I'm finally agreeing with kootchman. It's all in the small print and you need to read it. Even though what this bank did was predatory lending by most any definition, you still bought into it when you signed away.

   If you're too bothered to read the fine print, which is totally understandable, you need to at least trust that when there are mistakes or errors, your bank will value your business and you enough to work with you to overcome the difficulties. Like kootchman says, it's a quick correction if the bank likes you. I've got myself into similar situations and been able to talk to someone who eventually made the necessary corrections to keep me as a customer. At a good bank, you don't need to have a large account to count.

   Find a bank that you trust and don't be afraid to move your account. It's no guarantee that it'll solve all problems, but it definitely helps.

   Is there a rule against telling us which bank this was, MBarrettMiller? Perhaps exposure on this blog could help them find a resolution.

   Posted 7 months ago #         

10. AdmiralJaneway
    Member Profile

    To avoid a witch hunt, the bank with an orca logo does NOT have a branch in West Seattle.

    Posted 7 months ago #         

11. MBarrettMiller
    Member Profile

    

    The person I know that this happened to was not whinning and looking for someone else to pay. He was just stunned by the level of charges.
    Bank claimed they had a new policy that only allowed them to reverse one od charge.
    This was receive on our company email.
    "...I,ve seen this picture before. My daughter had a similar problem with WAMU she never knows what is in her acct she uses her debit card to get coffee in am and one of these put her overdraft and a 25 dollar fee. She never knew she was od for a week or so just kept using the card (the bank kept authorizing it because of the small ants each time) so each cup of coffee ended costing some $30 total mat she overdraw with these purchases was something like $20 but the charges were over300..."
    Okay, people dont pay as much attention as they should and should get some charge for their lack of citizenship but $300 plus plus plus-seems a bit much even for a country that worships money....

    Posted 7 months ago #         

12. shed22
    Member Profile

    MBM ... I absolutely agree with your last post. Banks should not allow access to unavailable funds and then charge overdraft fees for the loan(s). They should block the account until sufficient funds are available.

    Posted 7 months ago #         

13. DBP
    Member Profile

    More posts like this, please. Thanks.

    By the way, M, do you have a first name or nickname you go by? "MBarrettMiller" seems so formal.

    Also, please be aware that whenever you post a complaint on this forum about excessive punishment, entrapment, and the like, you can count on a handful of people coming back with: "You should have followed the rules." —As if the rules were even at issue!

    Suppose I were to relate a story about how I was driving through Buzzcock, Washington* when I got popped for going 10 miles over. My punishment? —Two years breaking rocks at the Buzzcock Quarry. Plus, I have to marry the mayor's daughter. (To be served concurrently.)

    I know I can always expect at least a few responses along these lines:

    ● Hanging is too good for you, filthy speeder.

    ● You really should've read the Buzzcock Municipal Code (Section III, Part 7) before you drove through the town.

    ● Quit yer whinin', boy. I seen the mayer's dawter. She ain't so bad.
     

    ***************************************************************************************

     
    *No disrespect to the town of Buzzcock. Them's good people what lives there.
     

    Posted 7 months ago #         

14. MBarrettMiller
    Member Profile

    

    I am sure the good citizens of Buzzcock thank you for the positive ink.

    Posted 7 months ago #         

15. Forest
    Member Profile

    

    According to a reliable friend of mine, a long intricately detailed (who's going to mention exactly $232 overdrawn?) tale about someone else's experience is most often a forwarded spam letter or urban legend. Especially when it fails to put in details like, say, the name of the business the whole story is supposedly about.

    Posted 7 months ago #         

16. Magpie
    Member Profile

    

    Another reason to go with a Credit Union. instead of these crazy overdraft policies that most banks have, you can usually get a line of credit attached to your checking account that is quite cheap and good to have in case of the occasional overdraft. They might have a small fee to access them (under $5) and a relatively low interest rate.

    There is a relatively new banking regulation that requires you opt in on debit card purchases. If you chose not to opt in, the bank cannot charge you a fee for an overdrawn account on a debit purchase. of course, you risk being embarrassed by a declined transaction. Remember, you have a choice! If you opt out, your debit transaction will be declined, but you don't risk a bunch of fees that end up being ridiculous.

    Several years ago, while out of town, my daughter went to check her balance at a US Bank ATM. She had to agree to a $3 charge before she could see her balance. Turned out, she only had $2.80 in her account. For 20 cents overdrawn on an inquiry, they charged her $30. as soon as she came home and discovered this, she called them and they refused to refund her money. needless to say, that account was moved to a different financial institution.

    Remember, do not opt in for debit card fees or you could pay $30 for a coffee. This doesn't you on NSF checks or ach transactions, but it will on debit card transactions.

    Posted 7 months ago #         

17. Yardvark
    Member Profile

    

    If you're not satisfied with your current bank or have been looking to switch over to a local bank/credit union, you're apparently in good company:

    http://idealab.talkingpointsmemo.com/2011/10/bank-transfer-day-protest-attracts-massive-facebook-following-as-well-as-bank-trolls.php?ref=fpb

    Remember, remember, the 5th of November.

    Posted 7 months ago #         

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