Money Being Held After Online Purchase

[Susan9608]

What is the name of your state? Texas

I made an online purchase at www.oldnavy.com on 10-25-07. The order was delivered the following day on 10-26-07. Then, on 10-27-07, my bank's fraud department called me to notify me of some suspicious activity on my account. Old Navy had billed me twice for the same amount, $522.27.

By doing this, they put my account into a negative balance, which cost me an insufficient funds fee of $35.00.

I called Old Navy's customer service, and they told me that it's their policy when an order is initially placed to place a hold for that amount of money on the customer's bank account. 7 days after the payment has gone through, the hold is lifted.

Is it an acceptable, legal practice? It seems to me like they're essentially using their customer's money as a loan. In my case, my payment cleared the same day, so they received their $522.27 on 10-25-07, but they continue to hold another $522.27? Something about that doesn't seem right.

After talking to the customer service representative and that representative's manager, they finally agreed to contact the bank and have the hold released. Unfortunately, the money still has no appeared back in my bank account, and I'm still being charged the $35.00 insufficient funds fee.

This just seems to me to be a very shady practice. My questions are: Is this legal? If it is, do I have to just suck up the $35.00 insufficient funds fee? If it is not legal, can I ask Old Navy to cover the insufficient funds fee?

 

[Help34Friend]

Sounds strange to me.

I find it odd that this was done by a legitimate company (Old Navy). In fact, a lot of your story doesn't add up.

1) You were billed on the day of purchase, but then, I suppose your order shipped the same day. Normally, most orders are shipped the next day or 2-days later.

2) You received your order the next day--that's unusual (unless you requested next day shipping);

3) In my experience, when I check my bank account immediately after ordering something online, I see transaction I just made, but a day later, it's gone--until the item I ordered ships. But, that initial transaction is just a bogus one, which ensures the merchant that I have funds in my account to cover the item ordered. This is done by all legitimate businesses--even offline businesses where I've paid with my credit or check-card. It's not a "hold."


So, what happened to you is, you were DOUBLE-BILLED. Call your bank's fraud department, and file a complaint against this company. Your bank ought to demand repayment of the double-billing event from the Old Navy merchant.

If I were you, I would request your $35.00 overdraft charge be reimbursed by Old Navy, since they unlawfully caused it.

Oh, and don't buy from Old Navy anymore--they don't appear to be behaving appropriately for a "legitimate" business.

 

[VeronicaLodge]

I've often had double pending amounts on my account from both online retailer and stores/restaurants where i have used my debit card. Its always "pending" and doesn't cause me to have an overdraft at my bank. I always just wait to see what clears, and its always only one charge.

You should switch to a bank that doesn't throw you into overdraft for pending charges.