is this a Deceptive practice of this Bank?

[luckynucky]

What is the name of your state?tx
I have an account with WellsFargo. I had made an advace check to one Credit card and my bank paid that amount even though I did not have sufficient funds in my amount to cover that check. I had about $20 in my account and the check was for $350. My bank paid that amount and charged me a Overdraft fee and my account went from $20 to -$365. There were two other small charges on my ATM card for about $15. When they got posted to my account, the bank also charged Overdraft fee of $35 on each.
I remember very well that I had made a $150 check to someone few months back, and I did not have sufficient funds then too but same bank did not pay that small amount and returned that check and charged my about $50 in NSF fees. The same check got deposited again next week and my bank charged another $50 for NSF.
I feel that Bank has done deceptive business by paying to one and not paying to other.
Do I have any legal recourse to this?

 

[cmorris]

Why are you writing checks/using your debit card if you do not have the funds to cover it?

What documentation do you have from when you opened the account?

 

[smorr]

Many banks do not accept "post dated" or as you put it, advanced checks even if you have overdraft protection. Overdraft doesn't necessarily mean that you can write checks or use your debit card without the bank charging you a fee for these overdrafts either. The charges you incurr by taking advantage of the overdraft dwindle your account. Eventually, the bank will no longer (which may have already happened) honor your overdraft privileges. Sounds like you've done this before (and often). I have to admit, I've written checks for bills and mailed them a few days before I know the money is in my account, but don't mail more than two days in advance and I have automatic deposit. Nevertheless, that's still playing Russian Roullet with my account but I do this only occasionally. If I were you, I'd seriously think of spending less because if you keep this up, you'll always have this problem. Oh, and the short answer to your question. You don't have much recourse against your bank. I believe they're within their rights to charge you these fees.

 

[Lookingahead]

No, banks can do that. If you don't want the fees charged, you shouldn't write checks or make ATM withdrawals on money that's not in your account.

My bank provides me with $1,000 overdraft. I have gone into that, knowing that a direct deposit will be coming in. But, I know that I'll get charged $22 for each overdraft. It's okay in an emergency and I know my direct deposit is only a few days away, BUT those $22 charges add up and I don't have money to throw away, so I try to avoid it.

On my ATM slip, if I have a balance of $50, the slip will actually show Balance $50, Available Balance $1,050.

 

[LaLuna Girl]

Please, please never go off your balance at an ATM machine

I work for a large financial institution and the reason I say that is (usually) the ATM information is refreshed once a day. If you have been out making purchases with your Check Card the ATM will NOT know that!

That's why it's important to keep an accurate register.

Just so you know, the bank does have the discretion to pay a overdraft ( and charge an OD fee) ***OR*** they can reject the check and charge you a rejected check charge.

Naturally, the latter is preferable...so you don't have your merchant's breathing down your neck and charge their OWN fees. But eventually the bank runs out of patience with your negligent bookkeeping and starts to reject checks.

Bottom line, don't spend money you don't have and ALWAYS check to make sure the funds are available (different banks have different rules). Even if you have direct deposit--check first--I tell my customer's that 30 seconds on the automated system or talking to a banker can save you $30.. (or more)!!!!!

 

[teflon_jones]

this is perfectly legitimate on the bank's part. you need to keep track of your purchases. ATM card purchases, checks, and ATM withdrawals don't take effect until the end of the day when the banks computers batch process all of them. in general, automatic debits and checks take precedence in terms of processing order, while deposits take effect last. since things don't get processed until the end of the day, you can withdraw money from your account that won't exist at the end of the day. does it make sense? well, to the banks it does, and they make the rules. it sounds like your bank did what was within their rights. keep better track of your balance!

 

[LaLuna Girl]

Is this a deceptive practice of this bank???

At the financial institution I work for, in processing, they always credit the deposits first and then debit your account for whatever comes through.

However, debit card purchases are on hold as "pending authorizations" almost immediately, so the funds are considered unavailable in your account.

Of course, all banks have different polices and procedures, so if you are unsure contact a banker, or better yet, actually READ the information they provide when you open your account. If you have an account that you are unsure of policies on, contact your bank and they will be more than happy to send a replacement copy of your account information!