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Bank of America Online Banking Complaint - Bank of America Online Banking fee fraud
Complaint
As a consumer from your state, I felt it was my responsibility to bring to your attention the following incident.
Bank of America knows that customers use online banking so as not to have to keep track of their paper receipts with a calculator. Clients depend on the accuracy of the balance shown online, and often check that balance on days that they make transactions. Bank of America (MD) Online banking purposefully does not show the true daily available balance on users’ online statement. A posted transaction will appear instantly then disappear for a few days, fooling the user that the available balance shown is up to the minute or even the day. Then BOA allows (instead of denying) transactions to post based on the erroneous balance and simply charge overdraft fees, although it was their mistake in reporting the wrong balance.
So, BOA depends on being able to charge Huge overdraft fees racking up on Online Banking customers who depend on their online banking daily balance to be correct and accurate. Transactions that post on a certain day show up instantly, then the available balance listed is assumed to be just as instant. But, the following day, and days after, the transaction is no longer shown and the available balance has reverted, unbeknownst to the client, who feels free to use their debit card, without having a register, to track spending otherwise. Other online banking that I currently use, will show the transaction, and the available balance up to the minute and that available balance can be depended upon to be accurate and updated every day no matter how many transactions are posted and how many days pass.
Please do something about the dangerous practice that Bank of America has developed. Only people who can least afford it, will be financially harmed by it. Especially those of us who are accustomed to checking our online balance (sometimes several times a day) in order to stay within our debit card limit. If the online balance can no longer be relied upon, we might as well go back to checks and check registers, and check fees, etc. Other banks are doing it right, so should BOA.
I have contacted several CSA’s by phone and requested that Bank of America refund the fraudulent fees, but they have so far refused, saying that I should keep a register and that the online balance does not reflect “pending” transactions, even though they have already posted. I would like my monies refunded, and BOA punished for this fraud.
As a resolution, I would like the following:
I want all the fees they fraudulently took refunded to me and the account closed.
Please contact me if you need more details regarding this incident.
Bank of America knows that customers use online banking so as not to have to keep track of their paper receipts with a calculator. Clients depend on the accuracy of the balance shown online, and often check that balance on days that they make transactions. Bank of America (MD) Online banking purposefully does not show the true daily available balance on users’ online statement. A posted transaction will appear instantly then disappear for a few days, fooling the user that the available balance shown is up to the minute or even the day. Then BOA allows (instead of denying) transactions to post based on the erroneous balance and simply charge overdraft fees, although it was their mistake in reporting the wrong balance.
So, BOA depends on being able to charge Huge overdraft fees racking up on Online Banking customers who depend on their online banking daily balance to be correct and accurate. Transactions that post on a certain day show up instantly, then the available balance listed is assumed to be just as instant. But, the following day, and days after, the transaction is no longer shown and the available balance has reverted, unbeknownst to the client, who feels free to use their debit card, without having a register, to track spending otherwise. Other online banking that I currently use, will show the transaction, and the available balance up to the minute and that available balance can be depended upon to be accurate and updated every day no matter how many transactions are posted and how many days pass.
Please do something about the dangerous practice that Bank of America has developed. Only people who can least afford it, will be financially harmed by it. Especially those of us who are accustomed to checking our online balance (sometimes several times a day) in order to stay within our debit card limit. If the online balance can no longer be relied upon, we might as well go back to checks and check registers, and check fees, etc. Other banks are doing it right, so should BOA.
I have contacted several CSA’s by phone and requested that Bank of America refund the fraudulent fees, but they have so far refused, saying that I should keep a register and that the online balance does not reflect “pending” transactions, even though they have already posted. I would like my monies refunded, and BOA punished for this fraud.
As a resolution, I would like the following:
I want all the fees they fraudulently took refunded to me and the account closed.
Please contact me if you need more details regarding this incident.
Comments:
Posted by sanford31031 on 2004-06-23:
I'm so glad that people can now go online and check their balance every 5 minutes. When working at a bank, the same people would come in everyday to get a printout and aggravate the hell out of us tellers. If what you say is true, BOA is wrong, but there is a thing called a register, use it! Keep up with your own balance and this will not happen.
Posted by elizzi2002 on 2004-07-13:
Whenever you make a debit card purchase that amount SUBTRACTS from your balance but does NOT post the same day! The debit will NOT post until that vendor requests payment from Bank of America. If they do not do so within a certain amount of time that debit hold will drop off the account, however, if you are keeping accurate track of your account you will know that you have already spent that money! It is your responsibility to know what you spend not BOA's! Do not rely on online banking, the balance a teller gives you or an ATM balance. Only YOU know your true balance because only YOU know where you have spent money.
Posted by Hockeman on 2004-07-27:
The two prior comments left are acurate but one sided... mabey BOA employees! Fees... i understand getting but $33.00 every time? I had a bill payment inadvertantly go out and as a result my account was overdrafted 5 times for a total of $33.00 of small charges. It resulted in $165.00 worth of fees. Rediculous!!!
Posted by trasmus on 2004-12-30:
We try to teach students in our school system the they are responsible for their actions. They, them, those, the person who performs the actions. You are reponsible for checking your balance and keeping your register. You are responsible for knowing what you have in the bank. You. You. You. Quit blaming a bank for your error. If you want to keep your account at a level that is dangerous you will suffer the consequences of your actions. My wife keeps 3 accounts balanced online and two of them constantly have barely $2 in them. She never overdrafts because she watches the account and keeps her register. If you don't want to do this much work then you need to keep a savings account that is linked to your checking to prevent overdraft charges and fees that you know are going to come but were just to lazy to write it down on your schedule or your check register. And don't keep only $5 in your savings account. lol. And believe me I am not a Bank of America Employee. I can't stand Banks and the monopoly they have become. But that does not mean I am not going to be lazy and think I have no consequence for my actions.
Posted by Chefotto on 2007-06-26:
Letter to the OCC: Bank of America charging overdraft fees even when the account shows an actual positive balance.
Bank of America is charging overdraft fees on accounts with a positive balance by debiting them when checks are issued via online banking rather than when they are cashed.
My online banking account is linked to a private account and a business account. It defaults to the private account, so that a check for $4,400 intended for the business account was sent to the private account. Discovering the mistake a day after the checks were issued (but not cashed) I immediately transferred $5000 into the account.. On-line banking showed a deficit of about $1,500 on a previous balance of about $3,000. Checking with BofA online banking customer service I was informed that an overdraft fee of $35 would be charged for each overdraft.
Contacting the recipients of the checks to make sure that they had been able to cash them, however, I was informed that the checks had neither been received nor cashed, which means that the account has a current real balance of over $8,0000, which more than covers the amounts of the checks written. A second call to Bank of America online Banking Service confirmed, however, that $35 per each of the five overdrafts would be charged in fees for uncovered checks despite the ongoing positive balance.)
Bank of America debits the account at the moment a check is issued. While I have resolved individual problem through assertive demands, I am sure others do not fare as well (my cash balance is usually rather high and Bank of America can be reasonable under those conditions). This practice, if legal, is outrageous and needs to be examined. Please tell me you will.
Bank of America is charging overdraft fees on accounts with a positive balance by debiting them when checks are issued via online banking rather than when they are cashed.
My online banking account is linked to a private account and a business account. It defaults to the private account, so that a check for $4,400 intended for the business account was sent to the private account. Discovering the mistake a day after the checks were issued (but not cashed) I immediately transferred $5000 into the account.. On-line banking showed a deficit of about $1,500 on a previous balance of about $3,000. Checking with BofA online banking customer service I was informed that an overdraft fee of $35 would be charged for each overdraft.
Contacting the recipients of the checks to make sure that they had been able to cash them, however, I was informed that the checks had neither been received nor cashed, which means that the account has a current real balance of over $8,0000, which more than covers the amounts of the checks written. A second call to Bank of America online Banking Service confirmed, however, that $35 per each of the five overdrafts would be charged in fees for uncovered checks despite the ongoing positive balance.)
Bank of America debits the account at the moment a check is issued. While I have resolved individual problem through assertive demands, I am sure others do not fare as well (my cash balance is usually rather high and Bank of America can be reasonable under those conditions). This practice, if legal, is outrageous and needs to be examined. Please tell me you will.
Posted by customerXXX on 2007-07-11:
To Sanford 31031 and trasmus : you both refer to checking online balances in addition to keeping your own register. I'd really love to know - What is the point of checking your online balance at all if you are keeping your own register?
To elizzi2002 : You say not to rely on the online banking, atm or even the teller. It's nice to think that we are not meant to trust the people who are holding our hard earned money. What is the point of giving over our money to an institution that can't be trusted?
To elizzi2002 : You say not to rely on the online banking, atm or even the teller. It's nice to think that we are not meant to trust the people who are holding our hard earned money. What is the point of giving over our money to an institution that can't be trusted?
Posted by quovadis on 2007-07-20:
I would like to tell my story.
I used to have an MBNA BUSINESS credit card, that was taken over by Bank of America.
Now BOA sent me two new Business credit cards, and i try to use online banking to see by balances and conduct the company business online.
First of all, i can't see temporary authorizations on my statement as purchases ocurr.
The debits and credits are posted 3-5 days later.
So i have to wait to see if a payment went through.
The total alloted credit line is wrong. It actually shows the wrong figures.
I have set up the online banking to send me email alerts. I often receive emails stating that our credit card balance exceeeds the threshhold set.
When i call customer service they clearly state that the balance is nowhere near the threshhold.
When i make a minimum payment due, the amount stays online to be paid again.
Sometimes i have paid that minimum payment multiple times hoping it would disappear...when i call customer service they tell me no minimum payment is due...
This is to say, that BOA online Business Credit card section is really not working.
It is making my life very miserable to say the least, and a lot of wasted time calling the online banking customer service.
Their typical response is "we are working on it" we know online banking has some flaws...
I used to have an MBNA BUSINESS credit card, that was taken over by Bank of America.
Now BOA sent me two new Business credit cards, and i try to use online banking to see by balances and conduct the company business online.
First of all, i can't see temporary authorizations on my statement as purchases ocurr.
The debits and credits are posted 3-5 days later.
So i have to wait to see if a payment went through.
The total alloted credit line is wrong. It actually shows the wrong figures.
I have set up the online banking to send me email alerts. I often receive emails stating that our credit card balance exceeeds the threshhold set.
When i call customer service they clearly state that the balance is nowhere near the threshhold.
When i make a minimum payment due, the amount stays online to be paid again.
Sometimes i have paid that minimum payment multiple times hoping it would disappear...when i call customer service they tell me no minimum payment is due...
This is to say, that BOA online Business Credit card section is really not working.
It is making my life very miserable to say the least, and a lot of wasted time calling the online banking customer service.
Their typical response is "we are working on it" we know online banking has some flaws...
Posted by inthamix on 2007-08-03:
thank you ever so much, msmall and customerXXX and Hockeman. I am relieved to finally hear from someone on this site who does not appear to be paid, or brainwashed, by the banking industry. i posted a very legitimate, but complicated, complaint re. WaMu yesterday. I was assailed with nasty, insulting folks (yes, I did stoop to calling one of them a smartypants after he insinuated pretty bluntly that I wasn't very bright). people who seem to wish a bank would hire them, or who did work for a bank .... or I suspect people who go onto these sites purely for the sick joy of having a chance to lecture and insult complete strangers. I sincerely feel that it's questions like yours, and like mine, that have any chance of getting us anywhere in this society. this mindless repetition of bank policies, which basically amount to telling us, "don't trust the bank" ..... where is that getting us at all? watch out in particular for Ponie ... only in this to practice hurling insults ....
Posted by maaddmax on 2008-05-02:
Wow, I had this exact same issue happen to me last month, and after calls and letters of complaints all I have gotten is the same response as you. I asked what the purpose of their advertisements and use of online checking if I cannot trust the balance shown. Their own commercials show people online in a cafe watching as thier transaction goes through and showing up instantly online. I had purchases from several days previous hit my account just before midnight, when my auto deposit would come in. I checked all day and night to make sure my balance was positive and if it did go negative I still had time to take a loan from family and deposit it.
Posted by Scott on 2012-08-01:
BOA's website and text banking is just flat out unreliable!! Thats the underlying problem. Their system has failed me many times. I dont know if everyone is familiar with BOA's text banking feature. I simple text with a 3-letter command and BOA can update you with account info. I texted asking for my balance, it told me I had $578 in my account, but when I logged in online minutes later, it showed $2894 in my account. ??? Just the other day, I went online to balance up my account and there were charges that were there 5 days ago and now they are missing... came back the next day with a different amount. How can you possibly manage your account when the bank cant? I dont have all day to sit here and watch over everything. If the bank is going to create and release these banking systems, then must be reliable.
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