Posted on 01/26/2009 4:30:36 PM PST by rabscuttle385
If you were hit with an overdraft fee from Bank of America (NYSE:BAC) (or one of the banks it acquired) between 2000 and 2007, you may be in for a little cash.
Bank of America recently settled a class-action lawsuit that alleged it (and by extension, Fleet Bank, LaSalle Bank and U.S. Trust Company, which it acquired during that period) changed the posting order of transactions and embarked on other activities in order to increase the revenue it received from non-sufficient funds fees, overdraft fees and similar charges. The lawsuit, which was settled for $35 million, also alleged that the bank failed to warn customers that certain transactions were triggering fees. Even though Bank of America denies any wrongdoing, it is agreeing to pay up to $78 per account holder.
(Excerpt) Read more at smartmoney.com ...
So great, now idiots who bounce checks are getting free money.
As an idealistic law school student, I actually thought that a tort-based class action suit did some good for the public at large.
Indeed, at one time that was the case.
Today, the representing attorneys make millions while members of the class get a check for $3.00 and there is little to no change in the practices that made up the underpinnings of the suit itself.
Makes me sick.
They have paid this lawsuit before (and will usually refund you the fees if you complain enough, and don’t let it become a habit), BUT will they dis-continue the practice?
You obviously don't realize the sorts of dirty tricks that the big banks play with their customers.
Post transactions in certain ways to maximize overdrafts, drop signature-based debit card purchases off the account between authorization and final posting, games with funds availability rules, etc. For example, back in the day (2005) when I was a Bank of America customer, I put cash into my checking account and then moved it into my savings account online when I got home. And yes, the transactions posted in such a convoluted way that I got slapped with overdraft fees and low balance fees (most of which I got waived).
The fact of the matter is that consumer banking regulations are excessively complicated and banks are essentially fleecing households of money.
Yes and no... BofA was sited for doing some rather nasty things... For instance, if you made a cash deposit to cover checks, they would process the checks BEFORE crediting your account with the deposit, when they occurred on the same day. Another thing they would do would be manipulate the order of transactions, in order to maximize the insufficient funds fees.
I once had a problem where they tried to charge me a late fee on a credit card payment, but I had proof that the check had been processed BEFORE the due date. I've since gone to only making my payments with BofA using electronic transfers.
Mark
You are right, if you bitch and moan they will reverse the charges.
No, it is a return of fees charged by BoA due to their practices designed to generate fees.
They are known to hold deposits and charge accounts so that they can maximize NSF fees.
Then instead of one large check bouncing, they’ll work it to make several checks bounce.
It isn’t “free” money, it is simply a return of some of the fees wrongly charged.
Not quite... Start with an account with a $100 balance. Deposit $1000 in your BOA account this morning; do it in cash, at a teller. Your balance shows $1100, and that’s what the receipt from the teller will show.
Now that same day, 5 hours later, use your debit card to buy something for $900.
BOA will, when processing the transactions will consider the purchase as “earlier” than your deposit, so that you had only $100 when you purchased, meaning they did an “overdraft protection” for the other $800 you didn’t have.
Essentially they would consider all withdrawals happening first thing in the morning REGARDLESS of when they happened, and all deposits as happening at the end of business, regardless of when they actually happened.
I don’t know if they are still in business but there was a California couple that lived for the class action suit.
They hit mortgage and credit card companies hard. Fleet lost and laid of thousands. Then I got a check fo 39 cents. I kid you not.
I am glad to see BoA whacked with this, however.
Then apply the customer's deposit.
Been there and done that. Deposit or transfer cash funds in the morning...pay bills online in the afternoon...see overdraft fees of $120.00 the next day. Yeah...they can play games even with the simplest of transactions.
The formula is quite simple:
Never write checks that total an amount more than the amount of cash that you have in your checking account.
Or you can run your finances by writing hot checks (stealing).
No, this really is a scam. If they put your charges in order, they would probably get one overdraft fee for the item that went over the limit. And that would be fair.
But BofA likes to pay off the big charge first, leaving a whole bunch of small items, each with its own overdraft fee.
Do you need a reading lesson or did you not bother to read the posts?
That is why there is a sign posted at the teller window and driver thru that reads "Money deposited after 3:00 will not be posted to your account until the next business day.
Again, simple rule, Do not spend more money than you actually have in your account.
Several years ago, I had $2500 in a BOA account with a $3k deposit that should have been added in first thing friday morning, giving me a balance of $5.5k, MORE THAN ENOUGH to cover $3800 worth of checks that were clearing on the same day.
HOWEVER
BOA took the checks out FIRST (even though the deposit had been transmitted thursday evening and was sitting there waiting)..they took out the clearing checks in order from highest to smallest (4 small bounced checks produce more revenue than one big one), THEN gave me the deposit..
I threw a tantrum like a 2 year old, in a BOA branch..in order for me to quiet down in front of customers, they refunded the check fees, admitting “an administrative error”. Once they gave me the funds back, I immediately closed the account and moved to wachovia..NEVER had that problem there..
those were the last checks I ever (non)bounced..
Look at my previous post.
I put cash into my checking account.
I then went home and transferred funds into my savings account from my checking account.
Bank of America's computer systems moved money back and forth between my checking and savings accounts in highly contorted ways (my savings was set up for overdraft to checking at the time) that ended with an overdraft fee AND a savings account low balance maintenance fee.
Try explaining how I got slapped with fees anyways, including a low balance fee on my savings account that I discovered too late to contest.
$78 bookmark
Yes, I understand BoA’s procedures and will not defend BoA.
However, there is no reason why a person should spend more money than they actually have.
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