Banks and personal issues:(........

[melo0115]

I'm in need of an explanation to all you bank employees or anyone with advice who would care to chime in. I recently became negative in my bank account due to overdrafts. I called my banks customer support center and they end up telling about a certain process banks use when it comes to companies I made certain purchases at, and that they need their money at certain times so they pull it out as it comes, and at the time they needed the money i had insufficient funds<< something in the order of that, I'm just confused because if you add the amount I needed for the purchases and match it to the amount i had left in my account it could of clearly covered all the expenses except for the last purchase, but the fact that they added the 25 OD fee between each purchase took away from what could be covered by my personal money. I understand I spent my money irresponsibly, but feels like they are running game on me, I was on a four day vacation in Padre and tried to make sure I didn't spend to much so I left my other cash back at my house. I should of been up on my account while I was out there, but to much was going on and I failed in that fashion. Pretty much what I'm hoping NT can help me out with is the understanding of why it's set up like this or to tell me I'm tripping out and what they were doing is justified, we all know banks have been on the OD fee hustle for a while and they did step regulations up but still there's room for error, I'm either going to get OD protection added on or just cancel the ability for me to use more then I have in my account similar to the form of me using solid cash......

Here's a visual, starting at the charge of 67.50 with 176.60 left in the account. The four charges including the 67.50 total 199.71 not including the OD fees, So without the OD fees 23.11 is that amount I didn't have to cover my purchases. I understand its a way for banks to create revenue and they get grimy sometimes, but can someone look at the pic and explain why the 25 OD fees came in between the actual purchases??????? Thanks for the help NT<<< BTW just for info I'm not a newb I formerly had the SN KanyewestJayz4life<<< But during the switch i guess it was lost in transition.....

 

[mr j 858]

Let me guess you are doing your personal banking with Bank Of America?

If so that was your first mistake.

Second you should have signed up and setup overdraft protection on your checking out.

 

[lightweight champion]

Your bank charges you for going over and for making purchases after going negative.
It's their way of saying, "we'll allow you to buy what you want, but for an extra $25."

You didn't have enough to pay for the $56.90 so the bank spotted you that cash. Think of the $25 OD fee as interest.
You didn't have enough to make the $32.25 purchase so the bank spotted you again. And again, another $25 OD fee/interest.

Grimy? Nah. Excessive? Yes. They're helping you make the purchase you want/need but you're helping them more than they are you.
And Mr. J you're wrong. I know that ain't BofA because that OD fee is less than the $35 BofA charges.

Also with OD banks won't charge it to you if you cover the expenses the same day you make them. But they will charge you an extra/extended OD fee if you haven't covered them within a time frame, most likely 5 days.

 

[mr jordan04]

It's a business/hustle
You learned your lesson. I've seen people accrue $9,000 + in fees in a 12 month span :x

 

[antbanks81]

In the future, I would suggest a second account with cash for emergency transfer, especially when you're out of town. I bank with Chase, and they wil give you the choice to cut your card at 0 or continue to spend into the negative

 

[nazdrowie]

You learned your lesson. I've seen people accrue $9,000 + in fees in a 12 month span

wait, wut no way. how is that even possible?

 

[crcballer55]

You learned your lesson. I've seen people accrue $9,000 + in fees in a 12 month span

wait, wut no way. how is that even possible?

I saw many people with the OD protection maxed out and would then bounce checks at $35 each. While not common, it's entirely possible because some people just don't know how to manage money. We used to have one client come in almost every day at 4:47 and try to make a deposit for his business. We eventually caught on that he was just kiting money from his accounts at multiple banks and shut him down.

OP- Typically banks will clear the largest purchase first and then charge the NSF fee for the remaining items after that. If I'm looking at your account right, you should have at least gotten credit for the first item and charged the NSF for the others.

At the very least, get an OD line of credit for your account. Preferably, pay for things in cash and tell your bank to reject any items that would overdraw your account. And a MUST... Don't do business with BoA.

 

[frenchblue23]

If you had chase, they would waive the OD fees with a phone call.

Also with OD banks won't charge it to you if you cover the expenses the same day you make them. But they will charge you an extra/extended OD fee if you haven't covered them within a time frame, most likely 5 days.

If I recall, it's 15 days for Chase on the extended OD fees.

 

[Deleted member 37467]

It looks like you got hit w/ 3 OD fee's, when you only OD'd twice.

I could be looking at it wrong, though.

 

[lexlieno]

Been working at a bank for 3 years now, if you OD it's on you.  Be responsible with your money next time. Fees are how banks eat, so whenever you OD even if its for a second, you will be hit.

 

[mmg]

This may be off topic but I remember a few years back there was this bit thing with Bank of America and fees, basically they would charge you the latest amount first if you went over, that way to get the most fees on of you.

 

[stillin729]

wait you spent more money than you had and it's the banks fault? just confirming via cliff notes

 

[mr jordan04]

You learned your lesson. I've seen people accrue $9,000 + in fees in a 12 month span :x

wait, wut no way. how is that even possible?

Stupidity. When I saw it I was like :x x 1948303983737

 

[(*Fin)]

OP- Typically banks will clear the largest purchase first and then charge the NSF fee for the remaining items after that. If I'm looking at your account right, you should have at least gotten credit for the first item and charged the NSF for the others.

Used to work in retail banking and had to explain this to clients all the time, IMHO its grimey as hell. On the whole, "Oh we assume your most expensive debits are probably the most important so we clear those first, not in the order you made those transactions." In the end its still your responsibility to cover your expenses with enough funds but I feel for folks because these fees hurt folks with less income the most.

 

[stopit5]

You can set up your debit card to reject overdrafts.....


I do it with my bank, I do the math in my head of my current balance and rarely get rejected, but a lot of times the bank ends up paying for one purchase that I didn't have funds for and since by law I have it setup not to overdraft I wont get charged a fee.

Only time you'd get overdraft fees if its electronic fund transfers making you negative.

 

[smokey13]

Been working at a bank for 3 years now, if you OD it's on you.  Be responsible with your money next time. Fees are how banks eat, so whenever you OD even if its for a second, you will be hit.

Don't be a Richard. He already acknowledged he was irresponsible. He wants to know why he got charged OD when after the transaction he didn't have a neg balance n non of his other transactions were big enough to make it neg either.

 

[runningfishy]

I'm in need of an explanation to all you bank employees or anyone with advice who would care to chime in. I recently became negative in my bank account due to overdrafts. I called my banks customer support center and they end up telling about a certain process banks use when it comes to companies I made certain purchases at, and that they need their money at certain times so they pull it out as it comes, and at the time they needed the money i had insufficient funds