How can banks get away with crap like this?

[BigToque]

My GF used to work for CIBC, so I know almost all of their methods of screwing the customer out of money with fees.

Eg.

You deposit cash into the bank on a friday for $500, then on saturday make a purchase for $500.

CIBC will put through all debits before the credits on monday morning. Because of this, you go below $0 and get charged a $35 overdraft fee, even though you deposited the money before the transaction.

How is this not illegal?

 

[fbrdphreak]

Well, if you don't deposit the money in before their same day deposit cutoff then you're a dumbass and deserved to get charged that.

 

[Sphexi]

A LOT of banks do this, there's a local bank that did it all the time, and would sometimes even hold your deposit an extra day for "processing", and every transaction you did they'd charge you that NSF fee, then a daily overdraft fee, etc.

My bank is a little bit nicer, if they end up doing it I can call them and they'll take the fees off.

 

[BigToque]

Originally posted by: fbrdphreak
Well, if you don't deposit the money in before their same day deposit cutoff then you're a dumbass and deserved to get charged that.

Are you retarded?

 

[djheater]

You did not deposit it the day before unless you have a receipt from the teller showing it went into your acocunt. Otherwise what you did is drop your money off at the bank after business hours for them to process on the next business day.

 

[JohnAn2112]

Washington Mutual will usually release some of the funds when you make a deposit. They hold the rest until the check clears. At least they do with my experience. Also, to avoid this, you can withdraw a certain amount when you make the deposit. Just use the cash until the check clears.

 

[BigToque]

Originally posted by: djheater
You did not deposit it the day before unless you have a receipt from the teller showing it went into your acocunt. Otherwise what you did is drop your money off at the bank after business hours for them to process on the next business day.

And on monday, they process debits made on saturday before credits on friday.

 

[buzzsaw13]

My bank automatically credits you after midnight on the same day if its over $100, sounds pretty bad from the way you describe it.

 

[isasir]

Originally posted by: Stefan

Originally posted by: djheater
You did not deposit it the day before unless you have a receipt from the teller showing it went into your acocunt. Otherwise what you did is drop your money off at the bank after business hours for them to process on the next business day.

And on monday, they process debits made on saturday before credits on friday.

Heh, banks follow LIFO rules.

 

[BigToque]

Originally posted by: isasir

Originally posted by: Stefan

Originally posted by: djheater
You did not deposit it the day before unless you have a receipt from the teller showing it went into your acocunt. Otherwise what you did is drop your money off at the bank after business hours for them to process on the next business day.

And on monday, they process debits made on saturday before credits on friday.

Heh, banks follow LIFO rules.

And I can't believe it isn't illegal. FIFO.

 

[sygyzy]

Most banks do this.

 

[spidey07]

Moral of the story "don't count your chickens before they are hatched"

Nothing illegal here, they're just abiding by the rules.

 

[trinketsummoner]

My bank (First National Bank of PA) actually clears every deposit i make at the time i make it, be it via atm or cashier. Ive paid in out of town checks even via an ATM at night and i can get access to that cash at that same point. Of course, you have to know your deposits are good, but FNB has been outstanding to me and i wont go anywhere else.

 

[djheater]

Originally posted by: Stefan

Originally posted by: isasir

Originally posted by: Stefan

Originally posted by: djheater
You did not deposit it the day before unless you have a receipt from the teller showing it went into your acocunt. Otherwise what you did is drop your money off at the bank after business hours for them to process on the next business day.

And on monday, they process debits made on saturday before credits on friday.

Heh, banks follow LIFO rules.

And I can't believe it isn't illegal. FIFO.

You're mistaken. They take all the after business transactions from the pool Fri-Sat-Sun and sort them debit then credit they then sort debits chronologically and credits chronologically but ALWAYS debits before credits. I'm pretty sure all banks do this.
Your mistake is in thinking they should regard FRI-SAT-SUN as regular days of business ... they don't, I've never been under the misconception that they did so I'm having trouble sympathising.

 

They do, because they can.

 

[FoBoT]

read the stuff you got when you opened your account, it is all disclosed in the mice type

 

[RbSX]

Originally posted by: Stefan
My GF used to work for CIBC, so I know almost all of their methods of screwing the customer out of money with fees.

Eg.

You deposit cash into the bank on a friday for $500, then on saturday make a purchase for $500.

CIBC will put through all debits before the credits on monday morning. Because of this, you go below $0 and get charged a $35 overdraft fee, even though you deposited the money before the transaction.

How is this not illegal?

They don't do that at TD...

 

[sygyzy]

What are you guys not understanding? This is not a logistics problem (is Sat a business day? Who cares). It's not a legal problem (by the way, many things are legal that are not "right"). It's not against the rules (who cares if you read the rules or not. Nobody is saying that it's not their right to do it).

The fact, is they do this to get you on late fees. If you were a bank and saw that a customer made a deposit then a bunch of charges, why wouldn't you process the deposit first knowing he'll need it to cover the charges. Instead, they process the charges first, then charge you $20 for every charge with non-sufficient funds, then filing your deposit. Do you know how many times you might use your bankcard over one weekend? Just five times and you are out $100.

Edit: Sorry. I used the wrong term. I didn't mean "late fees". I mean overage charges or insufficient funds charges.

 

[Chaotic42]

This thread makes me want to hug my credit union. If I deposit money, it's there instantly.

 

[mchammer187]

Originally posted by: Stefan
My GF used to work for CIBC, so I know almost all of their methods of screwing the customer out of money with fees.

Eg.

You deposit cash into the bank on a friday for $500, then on saturday make a purchase for $500.

CIBC will put through all debits before the credits on monday morning. Because of this, you go below $0 and get charged a $35 overdraft fee, even though you deposited the money before the transaction.

How is this not illegal?

that is one of the reasons i never use debit but then again if I was planning on making a $500 purchase i would never

i know people preach that credit cards are evil

but if you never carry a balance than credit > debit

better fraud protection
credit card is like a 30 day interest free loan
rewards
using a CC and paying it off builds credit

then again if I was planning on making $500 purchase and all i had was a debit card i would have just made the purchase in cash and not wasted any time depositing money into the bank to begin with

banks are out to make money i have no problem with this

 

[spidey07]

Originally posted by: sygyzy
What are you guys not understanding? This is not a logistics problem (is Sat a business day? Who cares). It's not a legal problem (by the way, many things are legal that are not "right"). It's not against the rules (who cares if you read the rules or not. Nobody is saying that it's not their right to do it).

The fact, is they do this to get you on late fees. If you were a bank and saw that a customer made a deposit then a bunch of charges, why wouldn't you process the deposit first knowing he'll need it to cover the charges. Instead, they process the charges first, then charge you $20 for every charge with non-sufficient funds, then filing your deposit. Do you know how many times you might use your bankcard over one weekend? Just five times and you are out $100.

Banks are in business to make money, not the other way around.

There is simply no excuse whatsoever for somebody having insufficient funds.

 

[Mayfriday0529]

Simple

change banks.

 

[AnyMal]

There is an easy way to avoid this hassle. When doing a deposit, do not deposit checks, instead ask them to cash the checks. Then turn around and make a cash deposit, it will be reflected in your account immediately.

 

[mchammer187]

Originally posted by: AnyMal
There is an easy way to avoid this hassle. When doing a deposit, do not deposit checks, instead ask them to cash the checks. Then turn around and make a cash deposit, it will be reflected in your account immediately.

that only works if your bank is the one that issued the check

try cashing a check for an amount greater than what you have in your bank

you will be denied

 

[Kelemvor]

Most banks will waive the fees if you cal them about it. If they don't I'd close my accoutn instantly and find a new bank. There's enough banks out there that want your business, it's not too hard to find one that doesn't charge stupid fees like that.