This is how predatory Bank of America is

[grasswire]

I opened a business account three weeks ago. I sent the debit card with a family member who was doing some business travel. The account got low, and a purchase of an espresso drink made it overdrawn. In the next three days, by re-ordering a dozen small purchases TWICE, the account is $300 overdrawn in overdraft fees of $35 each.

I was watching the online banking and saw that first overdraft. No further purchases were made. It was through re-arranging the order of items twice that the bank debited nearly three freaking hundred dollars.

I'm going in tomorrow and threaten to report them to the Better Business Bureau for predatory business practices.

[boston bean]

1. blood sucking P.O.S's nt.

[marmar]

2. Bankster of America's tactics would make the Mob jealous.

nt

[kalli007]

3. I HAD an account with them for years

and cannot tell you how many times they did this, it's pretty much standard practice. I always argued my way to the top until I got the fees refunded, then finally got smart and closed the acct. I saw a few months ago where a class action lawsuit was won regarding their overdraft fee practices.

[blueamy66]

33. I mentioned the class action lawsuit

to the last CSA I spoke to w/BofA and she didn't care. Just asked, "Can I help you with anything else?"

[The Court Jester]

4. I work in the Financial Services Industry

I work for a unique oompany that was founded and still exists to right wrongs in the industry. If you think that most of the companies in the industry are on your side, you need to think again. Most of the Financial Services industry is really just organized crime with really good connections in DC.

[Greyhound]

21. Bingo!

And welcome to DU.
:hi:

[myrna minx]

23. Welcome to DU, The Court Jester

:hi: We're glad to have you here.

[11 Bravo]

41. Welcome to DU, Jester!

[AllentownJake]

5. Yep

They are also in a lot of financial trouble right now due to their credit card business. The fees are one of the things keeping them alive. They know it's being watched right now because public opinion is now against banks.

You close off their predatory practices the firm would be bankrupt in 2 months.

[targetpractice]

6. You have to "opt-out" of overdraft protection...

It's all the rage, apparently...

As a courtesy the banks will cover your debit card purchases even if they overdraw your account... and charge you $35 each time. They consider this a "feature" that customers want. I discovered this because TD Bank changed their policy recently and I was stung like you. Luckily they reversed the charges when I complained I didn't know about the policy change.

I am a new BofA customer (a decision I regret), and happened to ask about their policy after being stung by TD Bank... Like them, BofA said I could opt-out of the overdraft protection... otherwise they would cover overcharges for $35 a pop. Thanks, but no thanks.

Call BofA customer service and ask to opt-out.

[blueamy66]

34. I was told by BofA

that I could NOT opt out. Her response was, "But you have already received a service that you need to pay for..it is not fair to the supplier of that service for you to not be able to pay."

WTF?

Can you all tell with my numerous responses that I hate BofA???

[bliss_eternal]

7. worked for them many years ago....

...and wouldn't recommend them to anyone for banking, credit cards, etc. i know there aren't many alternatives out there, and bofa's are abundant in most communities. but when asked, i've always attempted to steer people anyplace else.

[clear eye]

8. Heck, threaten to complain to your state's attorney general.

And mean it. The Better Business Bureau? Pfft.

[ooglymoogly]

46. No you are wrong....the BBB gets action.

Otherwise the complaint lays there in neon until other complaints are added to it and until it is satisfied. No one wants a bad rating and many cant survive with one (Many complaints = a bad rating) especially for a bank. However, the complaint must be well written and not frivolous and is just one of the spokes to a squeaky wheel.

[Shagbark Hickory]

9. Sighhh The BBB is not a regulatory agency!

They are not able to prosecute or investigate businesses. They are merely a means of mediating customer complaints and had you used the BBB to check out the Bank of America prior to opening your account there, I'm sure you would have opened your account elsewhere.

That said there were a hearing about this very subject last week and the bankers are fighting to prevent any reasonable consumer protections. As usual the bribes are a-flowin' so don't bet on anything favorable to the consumer happening.

[geckosfeet]

10. Get out asap. Find a credit union that offers the business services you need.

[Earth_First]

12. +1

[intheflow]

15. I tried opening a checking account at a credit union but was told

I could only open a savings account if I had bad credit! :wtf: I have bad credit due to being chronically under-employed and often late making payments, not from bouncing checks. I've also been charged $35 overdraft fees for going over my debit limit for the cost of a cup coffee, like the OP. So I have no option to leave the predatory banks. :grr:

[CrispyQ]

38. I've been on this site for 5 years

& I have heard the "go with a credit union" advice many, many times. I finally did just that. Why the fucking hell did I wait so long? I didn't want to go through the hassle. The final straw were some outrageous fees Wells Fargo charged me - over the top outrageous. I wish I'd done this years ago!!

BTW, the woman who helped me open the account said they are seeing an incredible increase in the number of customers moving from banks to CUs.

[AwakeAtLast]

11. I think all of the bigger banks do this

I have charged things and keep track of them. I have had some of them take upwards of two weeks to show. They appear when my balance is very low. I know I'm not going to overdraft because I keep track of it. They don't know it and think I'm going to make just one more charge, and then WHAMMO! Overdraft fee.

They are bloodsuckers, aren't they?

[druidity33]

13. they don't care about the BBB

threaten them with going to the State's Atty General. Or tell them about the viral Youtube video by the woman who decided she wouldn't pay her bill.

I'll reiterate what was said downthread... get out of there and find yourself a Credit Union or local Cooperative Bank.

Good luck.

[LynneSin]

31. I was going to say that complaining to a brick wall would be just as effective

BBB is best with smaller businesses - my friend used them when a local plumber really screwed her over. He was to replace a burst pipe but instead replaced her faucets and still insist she pay the bill.

[mullard12ax7]

14. See if they'll do anything about torturers while you're at it

It's bad business for the U.S. to let torturers go free and the policy unpunished.

[lonestarnot]

16. Comptroller of the Currency. Add them to your list for complaints.

[dmr]

22. I used the Comptroller of the Currency when I had a problem with Citibank

It was a huge problem. All the money in my account "disappeared", and all my outstanding checks bounced. The NSF fees were nearly 500 dollars!

The bank didn't know where my money went, and accused me of not having the money there in the first place - despite my bank statements saying otherwise.

The money was there one moment, and gone the next! No withdrawals, no scam artist stealing the money. It just 'disappeared'!

I couldn't get anywhere with the bank & and believe me I stayed on them like super glue. They strung me along, getting fat on fees, and on some occasions insisted they had never corresponded with me - while on other occasions, they found my numerous calls and written correspondences in their computer! What kind of bs is that?

After Googling, I found the Comptroller of the Currency; and gave them a call.

They immediately got on the problem - interesting thing is, once the bank knew who I had contacted, the very next day my money was back into my account, less the NSF fees. They felt they had a right to still charge me those fees. They never got away with that bullshit.

I'm now with a small local bank, who'll call you first and give you time to make a deposit to cover the transaction. We found that out when my son made a banking error with his debit card - they never charged him an NSF fee either.

[lonestarnot]

48. That is very good to hear! Bravo!

Thanks for sharing! Looks as though I may be experiencing similar actions! Thanks.

[Stevepol]

17. I had multiple complaints about BOA and finally got in a credit union.

I think the place fails to train its personnel well. I think the people working there are incompetent, which I think is a reflection of the ownership of the bank. I don't want to go into the reasons I think this, but it's based on many small failures on their part which drove me to w/draw my money and put it where it seems in better hands.

I've been very well satisfied with my credit union so far. They're more laid back and approachable but they're also competent. You can talk to them, but they know what they're doing too. They have no problem understanding what you want them to do, and if they can do it, they will. If they can't, they'll explain why.

[clear eye]

18. Here's a webpage for finding a credit union near you anywhere in the U.S.

http://www.creditunionsonline.com/search_usa.html Often credit unions allow you to join based on location, but sometimes you have to be employed by a specific employer or in a certain profession. Often they share ATM services w/ other credit unions so there are more locations. Their websites have all that info.

It's amazing how low the home equity lines of credit are from credit unions. Often the credit card rates are pretty low too, but that varies. I've never heard of a credit union playing games like you describe of "accidentally" double-charging a check card whenever the user strays a few cents overdrawn.

[Mimosa]

19. Why doesn't Congress reinstate the Usuary Laws? n/t

[Greyhound]

20. SOP for years at BofA. I'm sorry you got burned. n/t

[whopis01]

24. Call them up and demand they remove them. Refer to the Closson settlement.

https://clossonsettlement.com/index.htm

Bank of America recently settled a class action lawsuit over this exact issue. If you talk to them and bring this up, they will remove the excess charges. I have seen this happen recently with a friend of mine who runs a small business. It was virtually the same scenario as what you describe.

[grasswire]

44. thank you

the link to the documents is extremely useful.

"The lawsuit claims Bank of America encouraged its customers to use Bank of America debit cards and increased the number of fees charged to customers using Bank of America debit cards through the order in which such transactions are posted and the account balance information it provides. The lawsuit also claims that Bank of America authorizes debit card transactions that will result in overdraft fees; fails to warn customers that specific debit card transactions may result in overdrawn accounts; posts debit card and other transactions in high-to-low order; and provides account balance information to customers that is not current, accurate or as advertised. In addition, the lawsuit claims that Bank of America’s customer agreements are unconscionable, and that Bank of America does not provide customers with copies of account agreements until after they open their accounts. Bank of America denies these claims and contends that it has fully complied with federal law, any applicable state laws, and its customer agreements, and also contends that it has other defenses to the claims in the lawsuit. In agreeing to settle, Bank of America does not admit it did anything wrong. The Court has not decided the merits of the lawsuit or any of the defenses."

[whopis01]

49. you are very welcome. Good luck! n/t

[LeftHander]

25. It is called "stacking". Designed to maximize fees....nt

[mikelgb]

26. "I opened a business account three weeks ago."

that was your first mistake

why would you go near a BofA in this climate?

[no limit]

27. If you want your $300 back dont go in there threatening anything

if this is the first time you have ever been overdrawn you can simply call them and usually they will erase the fees. However, erasing those fees is usually up to the person you are talking to. And remember, these people you are talking to had nothing to do with those fees. So as long as you are nice to them and ask for them to refund the fees they will do it this time around since its your first time. But if you go in there threatening anything, or just being a dick in general, I gurantee you they won't get you the money back. And the people that work there care as much about the BBB as they do about the fact you got charged those fees.

Disclaimer: I am not by any means defending Bank of America in this, they are pond scum with policies such as this one. But the fact remains you signed a contract stating you agreed to those policies and I'm just trying to help you get your money back.

[grasswire]

37. you are wrong

No customer consents to the RE-ORDERING of the transactions. They may consent to the implicit overdraft protection where a bank covers a transaction. But they do not consent to the bank re-arranging the order of the transactions over a period of several days in order to maximize penalties. That is not disclosed.

[no limit]

39. The reordering of transactions is in the fine print. And I am not wrong

if he wants his $300 back thats the only way he will get it back.

He could just take my advice and simply call them and be nice which will put the 300 bucks back in his account. Or he could go make threats to people that had absolutely nothing to do with this policy and see how that works out for him.

But hey, what do I know.

[la_chupa]

28. I don't get it

I need a picture.

What did they do?

[Name removed]

29. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Stumbler]

30. US Bank did the same to me some years ago

Simply put, over a 3-day holiday weekend I made 8 purchases on my check card less than $20 each. On the first post-holiday business day I had one large sum charged to my account; my rent of $700. I knew that the final charge would overdraw my account, and was prepared to pay for one overdraft fee with my next paycheck.

Instead, two days later I get a notice in the mail telling me my account was some $300 in debt because of 9 overdraft charges at $35 a piece. Upon reading how they billed my account, I saw how they took my largest debt and applied it before any of the weekend expenses, even though it was chronologically the last debt put onto the account. Then they proceeded to charge $35 to each and every transaction during that 3 day period.

After an hour of haggling with my local branch, and several phone calls to executives, I finally got the 8 unnecessary overdraft charges wiped off my account. I later learned from a friend in the industry that such tactics are not only perfectly legal, but are used quite frequently to get extra money from those customers who don't fight back. She said I'd be amazed at how many people just pay up the difference without asking why or how. In the end I was lucky, but it scared the shit out me to know they could play such games with people's finances.

[grasswire]

35. US Bank has stopped re-ordering transactions

I saw that in the newspaper last week. That's cool.

[Stumbler]

45. Glad to hear it, thanks for the update

[blueamy66]

32. Yep, happens all the time.

They re-order purchases by purchase amount, so they can get you for the most $. Of course, the customer wants the biggest amount to clear first, as it is probably the most important. That was what the CSA told me. "If you're gonna clear them ALL, even though I don't have the funds to do so, why do I freaking care which one you clear first? Don't try to sell me that shit."

I am slowly moving my money from them to American Airlines Credit Union. I love that they offer online chat help and I don't have to wait, on hold, for 15 minutes when I call for help.

[walldude]

36. Not just them.. All banks do it.

I've been fucked over by the "rearranging" of deposits and withdrawals a number of times...

[Cetacea]

40. They do this because of an overdraft protection clause in the fine print.

That is how they cover themselves legally. Most people have no idea that they signed up for "protection" when getting a debit card. I learned this the hard way ($250 in fees for a few items under ten dollars on a weekend)

Debit cards are supposed to reflect and respond to the amount you have in your checking account. Originally people used them to avoid bouncing checks or using credit cards.

[dana_b]

42. they did that to me too

and my kid. I went in to talk to someone and they pulled some b.s on how the online numbers don't really refect what is coming in first, taken out, etc. And do you notice that the charges are always done right away but that deposits (even cash) take days to credit to your account??

I'm switching to a credit union this week. Fuck these bloodsuckers.

[8 track mind]

43. had the same thing happen with Chase

The Mrs. and i have been chase customers for 5 years. Our mortgage is through Chase and we have several accounts with them with not one single overdraft since we opened them. Two months ago i lost track of my balance on my debit card and made a couple of purchases. The wife noticed that i was overdrawn the same day, and simply transferred some money from one of our other chase accounts to cover the pending charges. She did this before 3PM CST.

No biggie, right?

Nope...... two overdraft charges. $70.

The wife called Chase customer service, explained what happened, how we have never had an overdraft in five years, and how she transferred the money before 3PM so the account would be in the black. They wouldn't reverse the charges, no way, no how, tough luck. The wife told them to go fuck themselves, and opened up an account with a credit union the next day.


Why didn't we do this earlier?????????????????

So, if you can do it, GO WITH A CREDIT UNION!!!!!!!!!!!!!

[anonymous171]

47. Did the same thing to me. Bankers are parasites. nt