bank updates and nsf/charges due to lag time

[brown917eys]

What is the name of your state?north carolina

is there an agency that regulates banking update times, penalties and fees allowed for nsf, returned items, complaints, etc.?

my bank of 30 years just merged with suntrust and i have had a terrible time due to the scheduled posting/updating of accounts being from 2-5 days after the transaction - even if done as an over-the-counter withdrawal/deposit in a bank branch office. if you happen to do something on thurs after 2:00pm, the update won't reflect (via branch, 1-800 automated service and/or ATM) until the following tues. in the meantime, you can withdraw funds or use the debit card as if the transaction(s) on thurs and/or friday were not done, i.e., use money you may not really have available.

this has caused me to go negative twice already. i am used to trusting the system to prevent me from hurting myself. i have incurred over $200 in overdraft fees.

is this normal?

 

[Veronica1228]

What is the name of your state?north carolina

is there an agency that regulates banking update times, penalties and fees allowed for nsf, returned items, complaints, etc.?

my bank of 30 years just merged with suntrust and i have had a terrible time due to the scheduled posting/updating of accounts being from 2-5 days after the transaction - even if done as an over-the-counter withdrawal/deposit in a bank branch office. if you happen to do something on thurs after 2:00pm, the update won't reflect (via branch, 1-800 automated service and/or ATM) until the following tues. in the meantime, you can withdraw funds or use the debit card as if the transaction(s) on thurs and/or friday were not done, i.e., use money you may not really have available.

this has caused me to go negative twice already. i am used to trusting the system to prevent me from hurting myself. i have incurred over $200 in overdraft fees.

is this normal?

There are many agencies that regulate banks such as the FTC, the FDIC, state banking commissions etc. There are rules governing when a deposit should be made available to you such as Reg CC, but it doesn't sound like your bank is in violation of that.

The only way to avoid overdrafts is for you to record every transaction in your register and balance your checkbook regularly. Your bank is not responsible for you being overdrawn.

 

[brown917eys]

over-the-counter transactions (at branch office)

i understand and agree with your advice on avoiding an overdrawn situation, but...

when requesting an over-the-counter withdrawal, should not it be denied if the available balance is less than the requested amount (and i have not authorized 'bounce-protection')? i requested $25. i thought my balance was $30, but i was in error - it was only $20, which is what was reflected on my account at the time of the withdrawal.

am i still responsible for them honoring this withdrawal, thus creating the overdrawn status (and nfs charges)?

thanks.

 

[Veronica1228]

i understand and agree with your advice on avoiding an overdrawn situation, but...

when requesting an over-the-counter withdrawal, should not it be denied if the available balance is less than the requested amount (and i have not authorized 'bounce-protection')? i requested $25. i thought my balance was $30, but i was in error - it was only $20, which is what was reflected on my account at the time of the withdrawal.

am i still responsible for them honoring this withdrawal, thus creating the overdrawn status (and nfs charges)?

thanks.

I don't know why the bank would give you money if the funds aren't there unless their system was down or if you have ODP which reflects in your available balance.

Either way, yes you are still responsible.

 

[brown917eys]

no ODP - but can i get out of some of the fees?

as i said above, might i avoid the overdrawn status fees since i do not have ODP and have not authorized them to do anything to create an overdrawn condition?

is that not part of the services a bank is supposed to provide? is it not part of the banks implicit function to manage your money efficiently and avoid expensive errors?

if not, what and/or where is their liability as a service provider?

thanks.

 

[Veronica1228]

as i said above, might i avoid the overdrawn status fees since i do not have ODP and have not authorized them to do anything to create an overdrawn condition?

is that not part of the services a bank is supposed to provide? is it not part of the banks implicit function to manage your money efficiently and avoid expensive errors?

if not, what and/or where is their liability as a service provider?

thanks.

Was their system down? When you made the withdrawal did you get a receipt that showed your balance to be negative?

They have not broken any Fed Regs or Acts so you have nothing legal to fall back on. You would just have to try and work with them since it is their policies that you are dealing with.

 

[wayne-o]

Veronica is the banking expert on here so I'm sure what she says is right. Most banks have a funds availability policy that would let you know when your money would be available. Speak to the bank manager about the situation when they gave you a withdrawal when there was not funds to cover it. My bank has been really good about fees when the situation was "iffy".

 

[efflandt]

If you are living so close to the edge that a $25 withdrawl causes an overdraft, wouldn't it be in you best interests to check your available balance before making a withdrawl (on-line or from wherever making the withdrawl)? The bank may not care because they make more charging the overdraft fee. I forget what the fee is to check your balance from an ATM (maybe $1).

 

[Ladynred]

My bank doesn't charge anything to check a balance at their ATM's

Another option -- change banks. There are other large banks in the southeast that you can deal with .. Wachovia and Bank of America are 2 of them. At my bank, if you make a deposit or withdrawl after 2PM, the transaction doesn't post until the next business day. Why a transaction on a Thursday would take almost 3 business days to post seems a bit extreme. I do know that a lot of banks don't actually PROCESS the day's transactions until midnight or so, even if you made your transaction at a branch office.

Bank mergers are a major pain in the butt sometimes, so if you're not happy with the new owners, it may be time to just move on.