Thread: Overdraft Fees - Ugh
January 10th, 2008, 10:33 AM #1Junior Member
- Join Date
- Nov 2007
OK, my son's paycheck gets direct deposited into his account. If he makes a payment on his credit card the same day the direct deposit goes in, the bank will run his payment first before adding the direct deposit. This usually causes a NSF fee of $35. The payment does go through (because the direct deposit was done the same day) but the bank will tell him that all debits will go in first before his credit. They say all banks have the right to do add debits before any credits, regardless if it comes in the same day.
He's learned to wait until a day after his direct deposit before he tries to make any payments, but I'm finding that more and more people run into problems like this. It's too bad we can't do anything about it.
Or can we? Anyone know?
January 10th, 2008, 10:58 AM #2Banned
- Join Date
- Dec 2007
Hi, I understand your frustration, however, most of us on here are trying to figure out how our credit FICO scores work, how to improve ones credit, and which cards to apply for based on ones own history. Most of the people I spoke to on here are gaining info on their credit and credit cards. [eidted]
January 10th, 2008, 12:45 PM #3
Hi LP25, I am not for sure which bank that you are talking about, but Mike gave me this link for a similar issue that I had at BOFA
The banks were I do my business always use your deposit before debits unless there is a check involved. In your case you have a money transfer or direct deposit, and I find that weird unless the charge was in route before the actual deposit. I know how those fees can get under your skin, ewww I hate over-drafts.
I hope this helps.
January 11th, 2008, 03:04 PM #4
LP25, I have an account with Bank of America and they put my money first before any charges. Let's say you have 3 pending charges waiting to be deducted from your account right. So if you make a deposit while those 3 pending charges are there, the day that you make the deposit, it will go ahead of your pending payments as if you made the deposit before your card was charged for those 3 pending payments. I don't know how direct deposits work in terms of being cleared before your pending payments, but they SHOULD work the same way.
January 11th, 2008, 03:06 PM #5
LP25, what bank does your son have an account with? He should be working with Bank of America. They have very good customer service. I've worked with Washington Mutual and they have rules that just don't make sense to me.
January 11th, 2008, 03:26 PM #6the day that you make the deposit, it will go ahead of your pending payments as if you made the deposit before your card was charged for those 3 pending payments.
January 11th, 2008, 03:39 PM #7
Meya, I don't think we're talking about the same thing. Your talking about the credit being posted to your current balance but I was talking about in what order it shows up on your account. I know that checks aren't posted to your balance until they are verified and that cash is always posted to your balance right away. Thanks for the heads up though. My dad has worked with BofA for 25 years and he hasn't had any problems with them.
January 11th, 2008, 03:56 PM #8
Oh, ok. I know that LP25 was talking about funds being available to cover a draft on the same day. When I said checks, I was talking about direct deposit checks comming in on the day that a draft does. For example, Drafts that were due to kick off on December 3rd (12:00am) will not be reconized by a Direct deposit that was due to be payable on December 3rd (12:00am) because they were already in route. But if you deposited Cash on December 2nd before branch hours closes, it will pay off anything that kicks in for Decmeber 3rd (12:00am) if there is enough funds available.
If you deposited a work check, personal check, or third party check in the bank on December 2nd, all of those funds are not automatically posted into your account the same day and if any drafts were comming in on December 3rd (12:00 am) it better not be no more that what the available blance is (not the account balance because there is a huge difference between the two) becasue here comes an overdraft charge.
January 11th, 2008, 04:10 PM #9
For some reason, I remember checking my account online every other Friday at 3am to see if my direct deposit came through and I remember it being added to my balance as soon as it came in. I don't know if the rules have changed now because I haven't had a direct deposit for 1 year now.
January 11th, 2008, 06:43 PM #10
It was probably there, but the time frame is between 12:00am- 06:00am. So I believe you (not saying that you were wrong), once mines was not there until 4:30am and I was a mad mama-jamma.
January 11th, 2008, 10:21 PM #11
What company was the direct deposit coming from? Mines was coming from Sears.
January 12th, 2008, 04:21 AM #12
It does not makes a difference who it was comming from, but mines was Office Depot. Bofa keeps its rules!
January 12th, 2008, 11:11 AM #13
Well I guess that's a good thing. It's better than changing their rules or else it would p***the customer off!
January 12th, 2008, 11:11 AM #14Junior Member
- Join Date
- Jan 2008
If my bank ran the debits before the credits, I would switch banks immediately. My bank is actually a credit union, and they are very consumer oriented.
January 12th, 2008, 11:35 AM #15
Hello! I'm with you on that one.
By Eldarwen in forum Credit CardsReplies: 8Last Post: January 24th, 2009, 07:22 PM