Quote:
Originally Posted by disneysteve
As a general comment (not directed at you cicy), overdrafts are NOT a problem with the bank but rather a problem with the user. It isn't the bank's fault if someone overdraws their account (unless it was due to some type of bank error, in which case the bank should correct it without penalty).
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When banks intentionally mess with the timing and order of deposits and withdrawals, I'd call that a problem with the bank, but it's one that wouldn't be a problem if not for the user-caused problem of living paycheck-to-paycheck.
But I've had this happen to me and others:
Have $20 in bank. Deposit $600 through a payroll check from a well-known local business. Wait four days. Go to gas station, supermarket and spend more than $20 at each.
A day or two later in the mail get a couple overdraft notices in the mail. Go to bank and request transaction logs, and it looks like this:
01/01 beginningofday Balance $20
01/01 noon Deposit $600 (not cleared) Balance still $20
01/05 noon gas station -$50 Balance $-30
01/05 12:15 grocery store -$100, balance $-130
01/05 12:30 overdraft fees, balance -$190
01/05 12:31 deposit cleared, balance $410
This would happen repeatedly (because I was naive enough to think it was a fluke the first few times). Every time, they would hold the funds on a local payroll check for as long as they possibly, legally could and hope that I'd try to spend some of it. The moment I did, they'd slap a few overdraft fees and then minutes later clear the check.
While this may be within the law and the user agreements, I'm not going to say they did "nothing wrong." That's pretty darn immoral in my world, and a good reason why many people who put themselves in bad financial circumstances learn to distrust banks.