Screwed by Bank of America. . . . Charged $105 overdraft fees for charges

that should have been debited out of an existing balance!

As tax day was approaching, my husband transferred $5,000 out of his IRA to cover our 2009 due taxes.
Since we hadn't even completed the taxes, we dropped the money into a Money market account at BofA.

Then my husband sent a check to the IRS to cover our taxes on April 12
I made a transfer (on line) from our money market to our checking account (still at BofA) at 11:00 pm on April 13 to cover the IRS check. At the time I made that transfer. . .no charges were pending for ANYTHING, and there was already a balance of $1,400 in our checking account.

On September 14, around 12:00 pm, I began to receive e-mails notifying me that my account had an overdraft, then a second, then a third, then a fourth. . . .for a total of $140.00 overdraft fees!

What happened is this: When I made the transfer from my Bof A money market account to my BofA checking account at 11:00 pm on April 13, THE TRANSFER WAS DEBITED that very day from my money market account. . . .BUT HELD IN LIMBO in Bof A coffers. . .until it was credited to my BofA checking account on April 14 in the afternoon. . .just AFTER BofA was able to charge, not one, but 4 overdraft fees!

In the mean time, 2 small debit transactions and one check (totaling $85.00 all together) were received by BofA. . .and also a larger check made to the IRS.
At the time all those transactions were received by BofA, there was PLENTY of fund to cover the 3 smaller transactions (the balance in the account before the transfer was $1,400). . .but not to cover the larger IRS check (because the money that had been debited from my money market account was still in "limbo" within BofA. . .and had not been credited to my account!

So. . .maybe it was my fault and I deserved the $35.00 overdraft for that ONE larger check. . .I didn't plan ahead and didn't transfer the money for that one IRS check soon enough!

But. . .why charge me FOUR overdraft fees for a total of $140.00, when the money was in the bank to cover the 3 smaller transactions???

Well, the answer from BofA is: "our policy is to debit your account with the biggest charge first. . .to protect you. . .so that the biggest charge is not rejected!"

And I am saying. . .your policy sucks, and is borderline fraudulent!. . . .If you had debited my account of the 3 smaller charges first. . .IT WOULD NOT HAVE BEEN OVER DRAFTED!. . .By debiting the "biggest" charge first, you purposely put my account in overdraft and were then able to charge me for an additional $105.00!

The "nice" manager at BofA was "kind" enough to give me credit for ONE of the overdraft. . .leaving me in the situation of paying $105.00 for overdraft fees that SHOULD NEVER HAVE OCCURRED!

What would you suggest I do???

It is not just for the money. . .it is for the principle! I am able to advocate for myself and I can afford to loose an extra $100.00. . .but it is for all those people who may NOT be able to advocate for themselves and who may NOT be able to afford to loose $100.00!

Please help with suggestions! Thanks!

That's really the only solution. They will NOT change this policy - they make millions out of it every month.

That's your only choice.

But beware, this is standard policy in most banks.

and there's not a damn thing you can do about it, except switch to a credit union.

be considered in the reform also???

I have had a couple banks do this to me in the past. It's a scam. They will hold a deposit, they will change deposit and withdrawal days and times, they will take the biggest charge first so that you have to pay on the three smaller charges instead of the one big one. And there isn't much you can do. Thank deregulation.

The manager should have the authority to reverse at least some of the charges.

Move it all, the money market and the checking and any other accounts you might have. If you can join a credit union, go there, otherwise pick a smaller, locally owned bank for your business.

Check the stability of any banks you are considering: http://www.bankrate.com/rates/safe-sound/bank-ratings-search.aspx

If BoA questions why you are moving your accounts, tell they why - and tell them it is for the principle.

these steps as of tomorrow!

But, please, spread the word around!. . .I think BofA does need some "publicity!"

I had my everyday accounts at an S&L and had never had them put a hold on any deposits - ten business days. Suddenly, they started putting the maximum hold allowable by law on every deposit, no matter the source, even transfers from one account to another at the same branch. This caused me to accrue over $200 in overdraft charges in two days - I only found out that soon because I made a routine deposit and my available balance was -$500+ even though I had deposited over $2500 in the previous two weeks.

When the officer at the S&L told me what they were doing, I immediately went home, figured out what was outstanding, what my balance should be, drove back and withdrew everything over that amount from the S&L - in cash. As I left I told the officer and the teller they should start applying for new jobs since that place would be closed within a month. It was closed two weeks later.

Since back then, the local credit unions had no branches convenient to me, I went to a small locally owned bank and opened new accounts. They have been terrific over the years and they have grown to a regional bank. I will stick with them as long as their policies are decent.

BoA sucks big time.

It helps that I'm not the only one!

This is the kind of "business practices" that are so close to being fraudulent (and pry on the most vulnerable individuals!) that they should be addressed in a reform!

But where to go from here?!!!

Ariana Huffington is one person behind it, but there is a website with information -


More info:

How To Switch Banks - And Why You May Want To Move Your Money: MSNBC
http://www.huffingtonpost.com/2010/01/22/how-to-switch-banks---and_n_433120.html

The how – and why – of switching banks
http://redtape.msnbc.com/2010/01/the-how-and-why-of-switching-banks.html

the game is called "stacking" and most banks have taken to doing it.

Trusting any of the bigger banks or regional banks is not wise anymore, and I am sorry to say even my
community bank did this to us.

It is still legal, unfortunately.

Banks will not change until they lose enough customers.

These probably added $70 in fees.
If they were store purchases, you can put a stop to this on August 15th.
New fed rules allow you to opt out of the scam known as debit bounce "protection" on all existing accounts.
If you change banks between 7/1 and 8/15 you can stop this abuse by refusing to accept it when you open the account.
These new rules would have saved you $70 and the decline at point of purchase would alert you to the problem.

I can't wait until August 15th when I march into Crapital One and tell that arrogant, abusive manager to get that sh*t off my account.

With hold funds to maximize their fee revenue. The big banks employ very good computer programmers to write code to figure out how you use your money and adjust how the credit deposits in time to maximize their fine revunue. Banks used to be profitable on interest, those days are long gone.

That happened to a friend of mine. They charged him $20 for no reason. He saw it online and called immediately. The customer service rep said that it was a mistake and reversed the charges, but I wonder how many people simply didn't notice. Many people don't balance their checkbooks, and they figure if there's a $20 difference, it was due to a math mistake or an ATM withdrawal. I'll bet BofA made lots of money on that $20 charged to a lot of people.

Have you been down to your local branch? Sometimes, managers who know you will work things out. Sometimes, the online stuff doesn't work right. There was one day I remember when the transfer function didn't work online. I needed to make an immediate transfer and I got the branch manager to do it.

I have first "discussed" this issue with a "chat on-line" Bank of America employee. . .who basically gave me a phone number to call!

Then, today I called that phone number and spoke with a "run of the mill" employee. . .and then asked to be transferred to a manager. . .who "allowed" a refund of $35.00 in a "gesture of good will!"

I do want to go to my branch office, but it is about 25 miles from where I live, so it may take me a couple of days!

I'd go to the branch and talk to someone you know there. Get the manager to help. If you don't get any satisfaction there, I'd ask how high up the chain you need to go and FAX those people.

If you get no satisfaction, you might also contact a local politico. These banks have taken a ton of taxpayer money. There should be at least one state rep willing to take on these greedy whores.

My wife didn't know about the overdraft and used the debit card to buy a few small things at different stores. When I saw the fees, they were more than the charges. I asked BoA if the could waive them, they said no, and I said close my account. They didn't care in the least.

I was hoping to get some cooperation!
Still, my changing bank may not affect THEM, but it will give me the satisfaction of having taking steps to demonstrate my disgust toward their fraudulent practices!

Wachovia is not the greatest, but much more fair than BoA.

But believe me, the company is well aware of the large number of people moving money out of their bank. Just recently saw an article on that, major banks have been affected - especially BoA - by people moving to credit unions.

So you might not get immediate personal gratification of someone caring, but as part of a larger trend, it's hurting them.

.

I would suggest going with a different bank as soon as possible, even then it might take you a while it took me three fucking years to finally be rid of those blood sucking scumbags.

Used to be a good bank, but they went the Blockbuster route and try to make their money off of late fees.

If you have a decent attorney general his/her office will harass them into giving you your money back or at the very least LEAVE A PAPER TRAIL on the bank. A paper trail can be the most damning thing. It doesn't seem like much but when more and more people write to complain it can have a great impact in the long term.

Next. Move your money to a local credit union.

that is an inevitable consequence of having a (near) zero interest rate percentage Fed policy for years on end. When the costs of borrowing money are very low, then the rewards for saving it in interest bearing deposits will be very low, too. There is no fat for the banker to skim.

Since banks can't make enough money on direct lending, they make it on fees and penalties --and usurious credit card rates (and, of course, on fees and penalties on credit card accts) and on fraudulent mortgage backed securities, and derivatives.

BofA has been doing this to thousands of customers a day for years. They have the most bulletproof legal contracts available, and there is little that you, an attorney general, or your lawyer can do about it. Even if you sue them, it's in the fine print of your original banking agreement that you'll be stuck paying their lawyers fees if you lose. And you WILL lose. And they have EXPENSIVE lawyers.

BofA makes most of their money from penalty fees, so they have no interest in helping you. They will often waive one or two fees as a "courtesty", but they will NEVER waive more than that. BofA reps who have taken pity on callers and waived fees in the past have been fired for their generosity, so the people you speak with are forced to decide between showing mercy and having a job at the end of the month.

Do what I did. Move your money elsewhere. BofA is a thug corporation with a fee structure specifically designed to shake you down for as much money as possible. There is no good reason to bank with them.

Try a nice credit union or small community bank...

three weeks ago.

We had NO money until today. Poorer than I have ever been.

Our daycare check got processed in front of several other charges and then they were all reprocessed.

20 overdrafts at $35 a pop.

My wife's payday was today. Mine is at midnight. We got our state tax rebate back today. WHEW!

and I mean BROKE- our daughter never knew the difference because my wife has so much meat in the freezer (we still ate beans with veggies for a couple of nights) and veggies frozen. The cats DID know the difference as we couldn't get kitty litter for 2 weeks- I blended in some clay litter I mistakingly bought a while ago. Smoking is tough on such a budget let me tell you (think I should quit?). I mean we spent a total of about $4 last weekend. Amazing what you can get by with and amazing how much food we actually had in the house.

Trust me--their policy about deducting the largest charges first is NOT about "protecting you". It's about sucking you dry of as many overdraft fees as possible.

...what you screwed yourself by cashing out of your IRA to pay your taxes will make the $105 you pay BOA look like chump change, you have to pay quite a nice penalty plus you lose the tax shelter of having that $5K in the IRA

BOA could not have played "gotcha" if you were capable of a minimal amt of advance planning...i have in some years had an income of less than $10K and i have never paid an overdraft fee, and it really isn't any mystery as to why, it's because i transfer my money into a checking acct 1 week to 10 days before i will be writing the checks that go out...if i'm broke i don't kid myself that i'm in the money and go around running up charges on debit cards, i find some canned beans in the back of the freezer and some change in the sofa to keep going or i sell something -- i don't bust my IRA and charge some little niggling stuff on the debit card and otherwise guarantee that my temporary embarrassment funds will be an ongoing disaster

april 15 has been federal income tax due date for as long as i've been alive and probably longer, it's difficult for me to understand how somebody can wake up on april 12 and realize, oopsy, maybe i should put some damn funds in my bank acct to pay my taxes

it's a pay as you go system, you are really supposed to be paying quarterly taxes if you expect to have a large tax liability-- if you've had a large tax liability due on april 15 in previous years and still don't pay quarterly taxes to keep up, then you will quite likely find yourself receiving a bill for additional penalties at some point in the upcoming months

people may not plan to fail but they sure do fail to plan

is BOA a bad guy? maybe they are, but they've never pulled this particular trick on me, they've only pulled it on people who somehow don't realize that they're going to have to pay their bills until whoopsy it's way too late

as others have said, the interest rate is nearly zero, banks have no way to make $$$ now other than fees, any bank you use will zap you with fees if you don't fix the real problem -- your inability to plan ahead

oh, and ffs, stop using debit cards for small payments, use cash, if you write one check instead of four checks, you're not gonna get hit for overdraft fees for four checks

kiting checks -- writing checks for money not yet in the bank -- is technically a crime so i'm not sure how much sympathy you're gonna get from a lawyer or your district attorney or some of the other fine folk you're being told to complain to

you got $35 back as a goodwill gesture, seems fair enough to me since you're the one who overdrafted the account

in theory we now live in an electronic world and it seems like checks should clear instantly but they don't, i still see a huge improvement over the olden days when you really had to leave 10 days to 3 weeks for a LARGE check to clear

also these days i'd think twice before switching accounts, banks don't have to accept new customers who are undesirables, and trying to swap banks right after bouncing three checks, i don't think you'll get a very good deal ? someone upstream mentioned it took them 3 years to get "free" of BOA, have you asked yourself why? it's prob. because they couldn't find another bank that would accept them, without requesting even higher fees

that said, i did recently close a BOA acct but only AFTER receiving a better offer for bonus plus fee-free services -- no monthly fees, no fees for bill pay etc

(kind of a saving account) at the Bank. . .the same bank that charge me those unfair overdraft fees!

My IRA is in the safe (safer?) hands of Fidelity! And by the way I am over 59 1/2, so I can withdraw from my IRA without a penalty if I need to.

As I said before. ..I did NOT access my IRA account to pay my taxes. . .I used money that was in a MONEY MARKET (a type of saving account with low interest earning) at the same Bank of America branch. . .I prefer to leave my money in the money market account and transfer it as needed to my checking account, rather than to keep a big balance in my checking account.
This is why I usually keep an average balance of about $1,000 to $1,500 in my checking account, and transfer money out of my saving for bigger expenses (LIKE my tax bill).

I believe the planning was correct. . .although I admit that I was TEN MINUTES late in making the transfer . . .for the first time in 7 years!!!

I admire your ability to deal with your finances, but I do not think it is fair for you to automatically assume that I do not know how to deal with my finances.

Actually, your transferring money into your checking account 10 days ahead of writing a check has WASTED a lot of money for you, and provided a lot of interest free money to your bank! No wonder they love you!

Like Lyric said, i was a contracted telephone CSR for BoA for about 6 months... just long enough to get sick of the abuses i saw heaped upon those least able to afford them.

The policy of posting paid-out items "highest to lowest" in order to "keep those important items, like mortgage payments, or car payments" is policy in every state except Nevada, who knows a scam when they see one. I saw this happen hundreds of time, usually to people who didn't understand the insider mysteries of debit-card "holds" and their expirations (PM me if you have a question about this, because it's complicated), or how long it was going to take a deposited check to become part of their available balance.

And yes, unless the customer was in the "Priority" or "Private Banking" echelon, we were only allowed to reverse 1 overdraft fee within a six-month period. As usual, the people who least need the help are the ones who get their asses kissed.

These people are pirates.

I had to quit, because despite the fact that i received numerous awards and compliments from my customers, i could feel my humanity being sucked out of me.

MindAndSoul: If the bank manager where you do your in-person banking is unwilling to make good on this mess they caused, call the number for the "Customer Care" department, and demand they do so.

So I do know first hand how it is the most disenfranchised that get taken for a ride all the time.
This is why this incident bothers me so much. . .I am a "premier" client with BofA, and I am able to advocate for myself. I am also lucky enough that the unfair fees that were assessed are not going to change my budget for the month. . .I can afford that much!

But I am thinking of all the people who are living from pay check to pay check, who are unable to articulate, even to understand in some instances, what is being done to them and that may even see their credit suffer. . .or the additional expense of these unfair overdrafts snowball into a real financial hardship!

This is why I want to spread this experience around. I appreciate your answer and your assistance in keeping this issue to the front line as long as possible!

We have that on our bank account and it sure comes in handy.

I really keep a close watch on my accounts, and it is (usually) no problem! This was just a one time incident. . .which makes me feel even more sorry for people who have to juggle "end of months" pain every time they look at their bank account!

They lie in wait, anticipating every little mistake. Then they pounce.

They seem to get away with much more than we allow them here in Canada.

B of A.

Go into the bank on a busy day....Friday around 4:00 and raise your voice saying you're transferring to US Bank or whatever.

I can't believe people still bank with B of A. :wtf:

... do not bank with Citi, BoA, Chase or any other big national bank.

There is NO reason to, all of them suck and they all have the IT to screw you with fees. No matter where you are there is a small local bank.

But. . .maybe we could ALL help those "too big to fail" banks becoming "small enough to fail!"

But I do think you made some mistakes of your own. Waiting until 11pm on the 13th to do a transfer wasn't a good idea; the time to do it was on the 12th when your husband wrote the check, or earlier. By 11pm the bank is likely already doing their nightly processing and your transfer won't go through until the next day. You found this out the hard way. Better banks will usually "http://www.bankingquestions.com/accounts/q_memopost.html">memo post" transfers between accounts so you don't have to wait, but those get wiped out during end of day batch processing when all the transactions get finalized. I usually plan out four business days for transfers to post because I am transferring between banks. In between accounts at the same bank you should at least give them a day.

It doesn't matter if you have enough to pay for the smaller checks. You could have 500 one cent checks come in and you will pay $35-$50 for overdraft fees on each one. The financial crooks purposely designed their software to screw people. They know most people won't complain and a lot won't even notice. Capitalism is an amusement park for predators.

There are a lot of people who are unable to advocate for themselves. And there are predators lurking around every corner to take advantage of them. Busy people, people who are caring for sick relatives, people overwhelmed, overworked, etc are all prime targets. The people who are more prone to be victimized are those who can least afford it, and are usually people who are the most generous with their time, and giving a lot to their fellow man. Conservatives love a predatory-based economy. They want to eliminate all regulations on businesses so they can prey on more and more people. But don't conservatives get screwed by businesses? Don't they get unnecessary charges? But I guess when they get screwed they smile and smoke a cigarette enjoying the abuse they just received from an abusing company. It's like they are in love with abusers.

It doesn't matter if you have enough to pay for the smaller checks. You could have 500 one cent checks come in and you will pay $35-$50 for overdraft fees on each one. The financial crooks purposely designed their software to screw people. They know most people won't complain and a lot won't even notice. Capitalism is an amusement park for predators.

There are a lot of people who are unable to advocate for themselves. And there are predators lurking around every corner to take advantage of them. Busy people, people who are caring for sick relatives, people overwhelmed, overworked, etc are all prime targets. The people who are more prone to be victimized are those who can least afford it, and are usually people who are the most generous with their time, and giving a lot to their fellow man. Conservatives love a predatory-based economy. They want to eliminate all regulations on businesses so they can prey on more and more people. But don't conservatives get screwed by businesses? Don't they get unnecessary charges? But I guess when they get screwed they smile and smoke a cigarette enjoying the abuse they just received from an abusing company. It's like they are in love with abusers.

to "forget it" and go on with the same old, same old!

I want to spread this experience for all the people who have been screwed like that before and haven't had the means, the time, or the ability to fight back!
So, any help I can get to spread this as widely as possible would be good!
Thanks!

It doesn't matter if you have enough to pay for the smaller checks. You could have 500 one cent checks come in and you will pay $35-$50 for overdraft fees on each one. The financial crooks purposely designed their software to screw people. They know most people won't complain and a lot won't even notice. Capitalism is an amusement park for predators.

There are a lot of people who are unable to advocate for themselves. And there are predators lurking around every corner to take advantage of them. Busy people, people who are caring for sick relatives, people overwhelmed, overworked, etc are all prime targets. The people who are more prone to be victimized are those who can least afford it, and are usually people who are the most generous with their time, and giving a lot to their fellow man. Conservatives love a predatory-based economy. They want to eliminate all regulations on businesses so they can prey on more and more people. But don't conservatives get screwed by businesses? Don't they get unnecessary charges? But I guess when they get screwed they smile and smoke a cigarette enjoying the abuse they just received from an abusing company. It's like they are in love with abusers.

OK. Four words.

Join a credit union. I left B of A in 2004. Good riddance.

I had that happen, and mine totaled something like 80-85 bucks. I went to the closest branch, sat down and told them:

1. I felt that if they were not going to take the money from my savings if there was not enough in the checking, that a debit transaction should be denied rather than this overdraft bs. That I had not agreed to, nor been advised that that is what would happen.

2. I recieved paper notices in the mail, 3 of them, all at once. The notices advised that I'd have 3 days to make a transfer to avoid the fees, but that time had already passed.

That was that, they credited the money, I learned something about how it worked, and I've been keeping a closer eye on my checking account online.

It's the only thing they'll respond to.

line of credit for if you overdraft.

that you closed the accounts. My son had a situation similar to yours, and decided to leave BofA. The teller did the usual, bored, "Oh please don't go" routine, but eventually closed his accounts (checking and savings). Lo and behold, the next month he got an overdraft notice on the savings account. He did not have a minimum balance to meet his service fee, and he was charged $75. My son went in breathing fire and told them he closed the account, they said no you didn't, blah blah blah. My husband (an attorney) went in with him and suddenly, oh yes, he did close the account but didn't close it all the way (?). After loud, angry threats by my husband, they closed the account (all the way this time!) and removed the $75 fee "as a gesture of goodwill". My husband closed our accounts with them right then.

I always though they were just taking advantage of a 17 year old boy, but sadly they seem to treat all of their customers this way.

you should move your money to a local CREDIT UNION.

BoA NOTORIOUSLY SUCKS.