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by rustynickel

Last Post 8 days, 7 hours Ago


Banking Woes
Feb 9, 2008 | 12:51 PM
Category: News
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Banking Woes?

 

 

This seems to be a pretty good cross section of ideas and thoughts.  I’m wondering  about something.  Am I the only one who seems to be having trouble with a bank or credit union screwing me out of my hard earned money?  As stated in my bio, I really don't have two nickles to rub together.

 

 

Recently, I’ve taken to having an automatic withdrawal for my automobile insurance taken out monthly rather than writing a check each month.   This is not a paltry amount.  It comes to over $400 each month. 

 

 

The first month that they deducted this – on the fifteenth of the month as agreed in writing with the insurance company – everything went fine.  The second month, the amount was recorded as being taken out on the twentieth by the bank.  Then I noticed that there were seven small checks, all for about $30 or so, that bounced.  Each with a charge of $33.00.

 

 

I questioned the bank and was told that sometimes these things just get crossed and they agreed to charge off the return check fees.  This amounted to $231.00. 

 

 

When I questioned why the amount was being deducted on the twentieth instead of the fifteenth as had been originally arranged, they explained “that it sometimes took a little extra time for them to get around to making the automatic deductions.” 

 

 

The third month, the same thing occurred.  Unfortunately, I failed to catch it the first week or so and the same thing happened to me.  When I noticed, I went to the bank to straighten things out.  Same excuses, except they refused to ignore the return check fees, stating that this was a recurring situation and they just couldn’t ignore it again.  This time the fees amounted to $330.00, they forgave $100.00, but still charged me $230.00.

 

 

I feel that they arranged it to happen this way so they could charge late fees.  And, if these are actually “automatic deductions” why in the world are they having to manually process them in the first place?

 

 

Has anyone else had this problem or is this just an isolated incident?  Or, do I need to change my bookkeeping procedures or just change banks?  So far this change in my paying for insurance has cost me over $230.00 in fees.

 

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Member Comments Total Comments: 10
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KellerKowboy read my blog view my photos
Feb 9, 2008 | 1:20 PM

Rusty, I don't like the way banks "earn" their profits, but I'd sooner think your beef is with the insurance company. You have a signed agreement with them and perhaps that agreement allows the date of withdrawal to float. Solve that problem and "Presto" - no more bank charges.
Day2 read my blog
Feb 9, 2008 | 6:40 PM

Change banks. I agree the practice seems a bit profit-driven by your current bank. I disagree with the comment above because if it was the insurance companies fault then why did the bank credit you back the overcharges in the first place. In some instance, this is an admission of guilt on their part. Your bank should work for you not against you. if you're not getting this level of service, move on.
rustynickel read my blog
Feb 9, 2008 | 6:56 PM

Thanks Day2 - I sort of had that feeling but just wanted to see if there were others out there who had experienced a similar situation.
My wife seems to think that the bank sort of holds on to the smaller checks until the automatic withdrawal comes in and then they pay the larger amount first, which then causes the smaller checks to be insufficient. I'm sort of inclined to agree with her on this.
Is this sort of thing done? And, if it is, how legal is it? You would think that someone would have screamed before me. Don't 'ya think? Or is it just the little guys like me that get screwed in this setup?
Day2 read my blog
Feb 9, 2008 | 7:01 PM

I think you are right that timing with bank transactions can be a profittable opportunity for them. for example, one time I made a deposit in the morning. Later that day, I wrote a few checks. The bank paid the checks first putting my account into a tail-spin and posted the deposit AFTER. They eagerly raked in a hundred dollars in over-charges! This made me think twice about their intent to do what is right for me. I concluded they did what was right for them! Seems the same has happened to you, regretably...
leegrimsley read my blog view my photos
Feb 9, 2008 | 8:45 PM

Learn a lesson from this.

NEVER EVER authorize ANYONE to automatically deduct something from your bank account.

I don't care what bank it is, they will yance you nine ways from Sunday, given the opportunity.

And Bank of America is one of the biggest perpetrators.

Takes them a lot of cash to bail out Countrywide
LesleyAnne read my blog view my photos
Feb 9, 2008 | 10:45 PM

I have 6 seperate automatic withdrawls to my account every month and I have never experienced the problem you are having. It sounds like maybe you are using your balance to determine what you have to spend, and when debits have been deducted out of turn or not deducted when scheduled you think you have more money than you do. I have always kept a strict check book so that I know exactly how much money I have, if something is supposed to come out on the 15th, then I deduct it from my register and regardless of when it comes out the money is there. Ultimately it is your responsibility to make sure sufficient funds are in your account to cover all debits to that account. The only way to do that is to keep track of it yourself, online and telephone banking is not real time for the most part, a manual register is the only way to go. Not spending more than you have will save you all those overdraft fees. If you have sufficient funds for all that you are withdrawing and all that is automatically withdrawn, then the order in which it is deducted should make no difference.
terrellmom read my blog view my photos
Feb 10, 2008 | 6:22 AM

if it is suppose to come out the 15th they should not be taken it out any sooner. i'd contact my ins. company. they should be responsible for any damages done to your account for taking it out earlier than agreed
scottbee1948 read my blog view my photos
Feb 10, 2008 | 10:00 AM

I agree with LesleyAnne. If you have the money there on the 15th it shouldn't matter when they deduct it. You need to keep a closer record.

You can"t write checks for more then you have deposited, they will bounce every time. lol
rustynickel read my blog
Feb 10, 2008 | 2:40 PM

While I certainly am open to any and all suggestions, and appreciate any help, it is just hard for me to understand why it is just now that I've begun to experience a problem with my bank account. I've NEVER had a return check in my life - until I allowed the automatic withdrawal. And, as far as keeping track, how is it possible to track your finances when the bank or the insurance company, or whoever, can make the deduction whenever they feel like it?
Klutzy2508 read my blog view my photos
Feb 10, 2008 | 4:15 PM

I usually go online and pay bills that way. A lot of times, it will take the bank 2 - 3 days for processing. If I have a withdrawal on the 15, then I might see it on the 15th, or I might see it on the 20th.

Since I use Quicken to keep track of my banking transactions, I've set it up to automatically withdraw the funds from my register, so that I don't have overdrafts.

I've had this occur before, so I know it can get very expensive, in a hurry.

Hope you get things worked out. Good Luck.
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rustynickel

Rusty Nickel just about describes me. I'm a bit rusty and don't really have two nickels to rub together. Just trying to get along in a world of riches. I'm living in a champagne world drinking water and trying to keep my head up above that. I've a couple of "rotten kids" who have a couple of "rotten kids" and I admit that I probably had a hand in making 'em that way. I love dogs, kids, fast cars and lots of good food. Love to cook, but hate to clean up afterwards.

Member Since: 2/3/2008


 

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