How can banks get away with crap like this?

[Mayfriday0529]

Obviously the bank is not good for you.

I have a 500$ overdraft protection, when i deposit a check the money is available immediately. The overdraft is there to cover the deposit check or if you go over on a purchase.

 

[BooGiMaN]

ive never had this happen, i have overdraft protection but i have also seen the online statement reflect the debit, the overdraft fee, the deposit and the overdraft fee credited back in that order...

 

[AnyMal]

Originally posted by: 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

Never had that problem at my local 5/3 Bank

 

[mchammer187]

Originally posted by: AnyMal

Originally posted by: 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

Never had that problem at my local 5/3 Bank

so i write you a personal check for 10,000
and you only have $500 in the bank

your bank will cash that no questions asked?

 

[jtvang125]

You wouldnt need to worry if you make sure you have enough funds in your account at all times.

 

[kranky]

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.

Or, you can ask the teller to credit your deposit as cash.

There are lots of things banks do for certain customers that they don't do for the people with $500 in a three-month old account who use their bankcard 100 times a month. There's nothing wrong with being that kind of customer, but you have to realize a lot of banks won't mind socking you with all the fees they can muster.

You need to know your bank's rules for crediting deposits, what time the business day cutoff is, and what constitutes a business day. If you know those and act accordingly, you can't get screwed no matter WHAT wacky rules the bank has. It's not as they hold a deposit day after day, hoping you'll overdraft your account. When the rules say it gets credited, it will be credited.

It's risky business to rely on instant crediting of noncash deposits to avoid overdrafts.

 

[archcommus]

There's a difference between your "balance" and your "available balance." Simple enough, they're not doing anything wrong.

 

[BigToque]

Originally posted by: archcommus
There's a difference between your "balance" and your "available balance." Simple enough, they're not doing anything wrong.

It certainly isn't ethical.

 

[archcommus]

Originally posted by: Stefan

Originally posted by: archcommus
There's a difference between your "balance" and your "available balance." Simple enough, they're not doing anything wrong.

It certainly isn't ethical.

There's nothing ethical or unethical about it, it's a normal business process. If YOU would check your available balance after making the deposit, either online or by calling, you would notice that it has NOT INCREASED until the bank processes it on Monday. That's the bank's way of telling you, yes, you made a deposit, but it's not available to spend yet. So if you spend it anyway on Saturday, that's your own fault.

 

[spidey07]

Originally posted by: Stefan

Originally posted by: archcommus
There's a difference between your "balance" and your "available balance." Simple enough, they're not doing anything wrong.

It certainly isn't ethical.

Welcome to the real world.

Seriously.

Why on earth would a bank behave any differently?

Hmmm, I don't cannot verify the validity of your funds so I will hold until I can. You overdraw on funds not verified = you are a crook or an overdraft.

Look at it from their perspective.

 

[OrganizedChaos]

bank isn't the prob, the prob is that your spending all the money you have and thus have no 'buffer'.

 

[Koing]

I make sure I have more then enough £££ for what small purchases I make so I cover myself. I try not to run my account low and just make sure I a few hundred £££ left.

But yeah I see your point. They are in a business to screw you over.

Koing

 

[moshquerade]

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?

i am sure they have a written disclaimer for such an event happening so their a$s is covered.

 

[Koing]

Originally posted by: moshquerade

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?

i am sure they have a written disclaimer for such an event happening so their a$s is covered.

They almost certainly will do!

In England cheques cashed in from the same bank will be availble the next day

Koing

 

[HardcoreRobot]

its more important for them to settle their debts to other people than to you, thats why debits are first

they dont do any banking on the weekends

 

[Wizkid]

Wow... some of you guys are getting screwed by the bank. I just complained to the bank a few years ago and they removed the hold from my debit card. I deposited a few 10k cheques into the ATM and the entire amount is always available immediately. I spend it all about 30 mins later (transfer to VISA) and never have any problems. As long as you have a good relationship with the bank they are usually able to remove some of the holds on new deposits.

 

[Kenazo]

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?

Stefan, time to switch to PC Financial. I've never had that happen to me yet. (even though they're a branch of CIBC)

 

[dullard]

Originally posted by: Stefan
How is this not illegal?

There are strict federal guidelines on this. It is all written out in the Expidited Funds Availability Act.

Short version: depending on the source of the check, federal law states that banks have up to 11 days to deposit the check. If you spend it sooner than the 11 days you are risking being overdrawn, late fees, bounced checks, and even possibly being arrested if the bounced check is large.

Long version: read this link.
[*]Government checks must clear by the end of the following business day (total 2 business days including the business day that you deposit it).
[*]Local checks from the same bank: 3 business days total.
[*]5 business days total for most non-local checks.
[*]5 business days total for most ATM deposits.
[*]9 business days total for certain check exceptions. Since 9 business days always includes one weekend, this becomes 11 normal days.

If you don't like this practice, you need to fix federal law. The reason for the law is to give banks time to do most of the work needed to ensure the money will be there to transfer to your account. Note: Forged checks require more time, since there may be money to transfer but the check itself was illegal. In that case, I don't know the exact time limit the bank has to prove the check was a forgery - it may be months or possibly years for the check to fully clear under federal laws.

 

[Cynicist]

I just got screwed by my bank. (palmetto bank in SC) Several times I've had nsf charges when I can clearly see that before and afterwards my balance was above $0. I called them about it and mentioned the first nsf charge, which I found out was because of a request I made (so its my fault) which is understandable.

However I asked about a second one and she could not tell me what the denied charge was or how much it was for, before apparently I was overdrawn and charged. In her exact words, "I dont have access to that information". Then how the ****** do you have access to the info above it? Needless to say I'm cancelling my account and switching banks...

 

[waggy]

I fully agree with the OP. i hate banks that do that. That being said there is nothing you can do about it. seems like every bank does it.

I was with a local bank for 20 years now. I would have a $500 buffer (quicken says i have 400 but the bank says i have $900 etc) that way i do not bounce any checks. BUT someone got a hold of my debit card number and cleared me out. They refunded the money but didnt want to refund the 4 checks i had out that bounced. At $20 a pop that ticked me off.

i asked them to clear them and they refused. So i said fine give me money orders for my money in savings accounts, checking etc. After that they said they would waive the $80 but at that point i didnt care. i switched over to my wife's credit union at work.

while a pain to switch i stuck with the bank for along time. I had a good deal of money in it for most of the time (grandfather left a bunch when he died) and they want to dick around with $80? pfft. the bank was 30 min away anyway heh.

 

[erub]

Easy, use a credit card, pay it off in full each month

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

I don't understand why so many ppl are scared of them, especially at college it seems nobody likes to use them, they all swear by their check cards

Then they get mad when somebody places a hold for too much on their acct and they can't use it, or they (gasp) have fraudulent charges made and maybe sends them into NSF funds