Use a credit card for all your purchases. Deduct amount spent from check book and consider it spent. When you get your monthly statement from credit card-write a check from your checking account. You should have this money already because you deducted from your balance-right. No NFS fees and no credit card interest this way. If you charge your resturant meals then there is no fear of being charged more than what you spent, same thing with buying gas-you are charged only amount that you spent. No pending charges and no holds on extra money by your Bank. If a merchant makes a mistake he voids the charge and rings up the transaction again. No ho ... more >>
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Grandma, I think he's talking about other charges.
I know that gas stations will put a "hold" on your card from anywhere between $50-$75.
What it seems the OP is stating is that if the actual amount of the charge was $35, the bank holds $75 (which the person has no control over or is not always told about the pending hold). The bank then charges and OD fee for the full amount, even if the correct amount was $35 and there was more than enough actual $ to cover the charge.
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True. But if he stop using his debt card and used his credit card none of this would happen. When you use debit cards you are asking for trouble. Banks invented debit cards to make money. If you don't use debit cards then no hold is put on your checking account to get you in trouble in the first place. And why would you use a debit card to buy gas knowing that they are going to put a hold almost double what you spent? You would have to know that you have enough money in your account to allow for this. I just don't know how you younger people allow Banks to steal from you with their extra charges. Can anyone explain this to me? This goes again ... more >>
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Grandma005, you have great alternatives to this issues but my post isn't about alternative or money management. My post is about how we, as a group, need to step up and stop this type of activities and other activities that are unethical. If we make adjustments, it doesn't stop it, we just lay down and say Ok do what you want to do, my king.
What BoA is doing is WRONG on every level and I feel it's time we stand up.
Haveing a bank account and make "charges" againt it is normal money management practices. The bank charging fees against what is pending and not knowing if the charge(s) is/are going to go through and post is not norm ... more >>
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Excellent info jonjaktez. It's amazing what these banks get away with these days. Those fees are not only unduly harsh but they hit the least among us... working people living from payday to payday. Where's the outrage? The Federal Reserve last weekend bailed out Bear Stearns to the tune of 30 billion dollars. Corporate welfare is alive and well. Where's the outrage? I will do as you ask and write my congressmen. Take care!
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Wow, I thought I was the only one experience this. Usually I don't get many NSF fees because I have a deposit or etc.. covering it the next day or that day. Since when ever it started everytime I go over even when the transaction is pending I'm getting NSF fees now. Its making me mad, even when i get a NSF fee for a transaction that was made 3 days ago but the merchant hasn't submitted it and i got a NSF fee for it and it was when I had money in the bank but something else came out like today and it says "Well we see your account as negative and so that pending transaction gets a fee too"...
What? I called bank of america all they tell me ... more >>
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The bank has no control over what amount the merchant places on hold in your account. If the merchant places a hold that is more than your available balance, the bank charges an NSF. Simple concept.
What you can do is don't use a check card/debit card for these types of purchases. Believe it or not, cash is still accepted by merchants.
Don't spend more than what is available to draw against. There is no more float time to spend away then try to deposit money into the account to cover it.
The banks don't cause your account to overdraw, you do.
The government doesn't have to hold your hand and protect you from the big bad banks. ... more >>
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Robf you're missing the point. It's not about money management. It's about you being held responsible for something that is not in your control. And yes I know cash is still accepted, duh!
They are charging me NSF's for transaction that never put me in the red and I mean never. I've gotten them back but after spending 30 minutes on the phone. My time is too important to spend on the phone all the time getting fees refunded becuase BoA is trying to screw me and everyone else over.
I'm a big GIRL not boy and I manage my money perfectly.
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gee has it occured to only spend the money you actually have access to?
"Robf you're missing the point. It's not about money management. It's about you being held responsible for something that is not in your control. And yes I know cash is still accepted, duh!"
"I'm a big GIRL not boy and I manage my money perfectly."
if it is not about money management, what could it be? and no you do not manage your money well. if you did, we would not be here right now.
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Robf: as jon said, you ARE missing the point.
madconsumer: "and no you do not manage your money well. if you did, we would not be here right now." If you understood the review you certainly would not have made that statement.
The bank is charging NSF fee on holds, no money went anywhere at that point. This IS wrong and it is not the customers fault. Pure, unadulterated corporate GREED!
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If there is a hold on the funds, even it it's too much, the bank HAS to assume that full amount is going to be charged against the balance. And that's the point of a hold - to grab the money and hold it until the charge is finalized. If that pushes you into the red, how is that the bank's fault? Blame the merchant that held more than they were entitled to.
The best solution has already been mentioned - get rid of debit cards. I can't see the fascination people have with these things - all we hear about is these types of problems that people keep having - one errant transaction and before you know it you are hundreds of dollars in the h ... more >>
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tnchuck, nsf fees on money onholds means they are spending money that is not available.
if no money went anywhere, then why would the bank charge nfs fees?
i did not miss-understand a word. people need to learn to manage their money.
"BoA has started charging overdraft fees on pending transaction (not posted transaction) when you go into the negative in your available balance."
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Thank you but I am NOT incurring fees since I DO manage my money.
BoA can't prove that the accounts went into the negative. They will tell you to back step. They will tell you that it takes 3 days for a pending debit card transaction to clear the bank. Well that is not accurate. I've had transaction clear in 1 to 3 days so how is someone suppose to back track?
A pending transaction is not guranteed to post. The banks as well as the consumer knows this. If you spend the money then of course you should not spend what is not there to spend but if you don't spend it but the merchants says you did then you're screwed. How is that et ... more >>
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That's my point! Stop using debit cards!! Use cash or credit cards. There is no hold with these. Once a week go to Bank - take out enough cash for what you can afford to spend. Put money in envelope and when money is gone then you are finished spending. Period. You do have control this way. You need to watch Dave Ramsey show. Don't let the Bank charge NFS fees on holds to start with. Hugh Jorgen is right. Then don't let the merchant have control over your money. When you let a merchant go into your account you are given them control. Take back your life and stop using debit cards for purchases.
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mad, you just don't seem to get it.
"if no money went anywhere, then why would the bank charge nfs fees?" - The issue is they ARE charging the fee. The hold was greater than the actual transaction. Money was NOT spent that was not there.
I don't think any amount of explanation will get through to you.
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i have been with bank of america for many years.
i am 100% postive on how bank of america works with regards to accounts. i suspose it is you that fails to understand.
perhaps i fail to understand why someone will blame the bank on their lack of spend tracking.
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The issue seems to be with merchants holding more than the purchase. The bank is justified in the respect that once that pre-authorization has come in (the pending amount) they are legally obliged to pay the debit when it hits, whether there are funds or not at that time. The sad truth is that if you run your checking balance down low, you probably shouldn't use your debit card, write a check instead. To most people, debit cards are not a good friend.
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'...if you don't spend it but the merchants says you did then you're screwed.' OK, I'll agree with that. But why is your complaint against the bank and not the merchant? It's for convoluted situations such as this that I've never used a check/debit card. Instead, I use a credit card for any purchase I can. That way I'm using someone else's money until my CC bill is due. After spending X number of dollars on the card, I get a check mailed to me. I get the better of two worlds--and no overdraft fees.
I agree with grandma and Robf--poor money management!
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Right on Ponie. I just received a check in the mail for $50.00 for using my credit card. And since I get 5 points for every one dollar spent at grocery stores it is easy to get. It is about $25.00 a month in free money for using my credit card every month. No overdraft fees and best of all I get a summary statement from my credit card that tells me exactly how much I spent and what I spent it out on.
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grandma, thanks for the reminder. I went to the site and ordered the same for myself. Using your CC for almost all purchases doesn't take long to qualify for another check. I've even charged as little as $1.50 for a couple of candy bars. Only place I use cash is at my friendly Dollar Tree store. But I think they've started accepting CCs also. Will have to check it out the next time I need 3-4 items that because I browse too much, end up costing me $15-$20. :)
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Let me makes this clear. I'M NOT RACKING UP OVERDRAFT FEES. I MANAGE MY MONEY!!!!!! This is stickly about the policy!
I have an issue with the policy because the bank (whatever bank) is going to screw over the customer when it's not the customers fault. This is just a bad policy. BoA cannot prove that the customer was overdrawn in bank...red flag...how can the customer prove that their account wasnt overdrawn? BoA is going to make the customer pay for merchant's mistakes...red flag. BoA is going to make the customer pay fees for an amount that the customer didn't actually spend...red flag. A bank card can be a good thing if you man ... more >>
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Everyone else is not saying that you are a poor money manager. What we are saying is to stop using your debit card. Don't let the Bank or merchants have control of your money. Don't allow the merchants mistake to become your mistake. If the merchant makes a mistake on your credit card you have the credit card to fight for you. The Bank does not care. They love NSF fees regardless of who made the mistake. It is money in their pocket and out of your pocket. You just don't get what everybody is trying to tell you. If you don't want advise then don't ask.
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I was never asking for advice. I posted information. But when most of the people here are saying "poor money management", I take it as they are saying I have poor management skills. If I'm wrong then I'm sorry but that's how I read it and it seems other did too.
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I have a good idea jonjaktez....lets take our money to a different bank like Wachovia who processes their accounts like BOA used to...I've been with BOA for 20 years and its time to move on.
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Jon
I agree completly with all you've said. I too have had the very same "experience" with BOA.....I had money in my account over the past weekend, and the bank, in all it's stupidity paid all purchaes in DECENDING ORDER (BOA pays this way in order to get funds to overdraft). I made several DEBIT purchases using my card (they tell me the money is on hold when it's done this way) what a bunch of you know what that is. BOA charged me fees PRIOR to posting just like they did to you.
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Simple answer, don't spend what you don't have. Since debit card purchase immediantely deduct the amount you use, it will effect the transactions that will post to the account that night. Suppose you had $200 in your account, and you have 5 tranactions totalling $50 that will post that that night. Because you possibly spend lets say 210 on a large item, that item will take up to 3 business days to post to the account. Since those funs are on reserve for that purchase, those funds cannot be used for other items, hence you have no more funds available for your purchase that will post that night, therefore incuring overdraft fees. Isn't that a ... more >>
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What I find frustrating is when, over a weekend you deposit a check and then make several purchases and have several "pending" transactions that are more than covered by this check, but are charged overdraft fees because Bank of America doesn't recognize your check until the next business day. To me that is dishonest. They can recognize pending transactions over a weekend from say a debit transaction, but they can't recognize my "pending" deposit that more than covers ALL my fees. How is that bad money management on my part? I think it is the bank being sneaky and dishonest.
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I recommend removing your funds from BoA and put them into a "not for profit credit union". That's what I did when I finally had enough of being fee'd to death by "Bank of Ameri-Gouge you". They figured out that fees are the only way they can make money from the poor and middle class folk. So for as long as we all keep paying the fees it will only just get worse. The power of the consumer is all power we have...
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I live in Detroit and ever since I lost my job last March and had to take on two minimum wage jobs to make ends meet, dealing with BOA has been a nightmare. It all started when they bundled 8 $2-dollar transactions and waited as long as possible to post them, leaving a $240 overdraft fee even though I deposted money before they posted. So I cash my next check (sorry, but have to eat!) and check my balance afterward ...what was 200 of underpaid labor turned into $50... This will have to last me for another week, so I figure I can afford mcdonald's right? Something to eat? Wrong! That $7 combo turned out to be $40 because BOA simply wasn't done ... more >>
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BoA class action law suit
http://www.clossonsettlement.com/
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(03/18/2008) 
