Citizens Bank of RI Citizens has no customer service Providence, Rhode Island

Make sure you don't spend more money than you have available in your account.  Yes it is really that simple and that is a sure fire way to avoid fees.  Since you said this happened a few years ago you may have just proven what a lot of people refuse to believe that this is a new policy with many banks.  Posting Highest to Lowest has been around for many years, regardless of what some people want to believe.

I read in the paper or on the internet a while ago that this policy is not ethical, not sure if they changed it though.

- Yes and it was probably written by someone who got hit with the fees because they spent more money than they had.  You will find even in response to your post that there are people that totally agree with you.  Telling you that banks are evil, you did nothing wrong.  They will even tell you that the banks days are numbered because they are changing their policies.  

But the fact of the matter is that even with all of the changes unless you take responsibility for your account and monitor your balance, odds are you are still going to get hit with fees.  Now, specifically in the case you mentioned, since the Mortgage payment would have put you into Overdraft if they posted the other transactions first.  They could have decided to just return the check to the Mortgage Company as NSF.  Who would you have blamed then?  The bank for not paying the check(that would have put you into Overdraft), the Mortgage company who now charges you a returned check fee as well as a late fee, or yourself who spent more than you had available?

I also found out that it costs less than $1 to process an overdraft on an account. How about that??

- I don't know where you "found" that information.  But I could see that as the reasonable direct cost to process it, but there are other "hidden" costs.  First when you overdraft you are not using your money anymore, you are using the banks money.  That money has to come from somewhere, and the bank does not get free use of the money that YOU are now using.

Here is a fresh lawsuit. There are plenty pending. some banks have decided to change some of the policies on their own..smart move but a day late and 40 billion dollars short.

If this law firm does not wish to add your bank to the suit...find another..no shortage..just google "bank lawsuits overdraft fees" etc.


Bank Customers Victimized by Alleged Abusive Bank Overdraft Fees Strike Back

Consolidated, Nationwide Class Action Lawsuits Filed in Federal Court Against Bank of America, Wachovia, U.S. Bank, JPMorgan Chase and Citibank
October 20, 2009 11:00 AM Eastern Daylight Time

MIAMI--(EON: Enhanced Online News)--Marking a substantial step forward in litigation over the banking industry’s abusive and excessive overdraft fee policies and practices, plaintiffs' counsel announced that bank customers have filed a series of nationwide class action lawsuits against Bank of America, Wachovia, U.S. Bank, JPMorgan Chase and Citibank. The complaints were filed in the United States District Court for the Southern District of Florida in Miami, where all federal lawsuits brought against the banking industry for abusive overdraft fees have been coordinated before the Honorable James Lawrence King.

    “The collection of excessive overdraft fees, usually around $35 per transaction, impacts millions of Americans each year and has become a multibillion-dollar profit center for the banks”

"The collection of excessive overdraft fees, usually around $35 per transaction, impacts millions of Americans each year and has become a multibillion-dollar profit center for the banks," explained lead plaintiffs’ counsel Bruce S. Rogow. "In many instances, these overdraft fees cost customers hundreds of dollars in a matter of days, or even hours, when they may be overdrawn by only a few dollars. Charging a $35 overdraft fee when a college student uses her debit card to buy a cup of coffee is unconscionable."

How Bank "Overdraft Protection" Works and Why the Abusive Collection of Overdraft Fees is a National Concern

Today, when customers open checking accounts, banks provide debit cards for the withdrawal of cash from ATM machines and the purchase of goods and services. Many bank customers are not aware that as part of the process of obtaining the debit card, banks automatically enroll their customers in "overdraft protection." The overdraft protection kicks in if the customer spends more than he or she has in the account to cover the purchase, up to a limit of a few hundred dollars.

Banks could simply decline to honor customer ATM or point-of-sale transactions if the account lacks sufficient funds, or could warn customers that if they go through with the transaction an overdraft fee will be assessed. In fact, until a few years ago, most banks simply declined debit transactions that would overdraw an account.

"Banks do not record charges and purchases on ATM or debit cards in the order they actually occur," stated plaintiffs’ counsel Michael W. Sobol of Lieff Cabraser Heimann & Bernstein, LLP. "Instead, banks reorder the charges and purchases so that the largest charge or purchase is the first one paid by the bank. This manipulative practice is intentionally designed, the complaints allege, to maximize overdraft fee revenue."

"If you buy your kids a $15 meal at McDonalds on your debit card and your account was overdrawn, that lunch actually cost you $50," added Mr. Sobol. "The bank won’t decline the debit transaction, nor will the bank tell you that you have overdrawn your account and is about to turn your $15 lunch into a $50 expense."

In 2007, banks collected more than $17 billion in overdraft fees. That number nearly doubled in 2008, as more and more consumers struggled to maintain positive checking account balances. In 2009, banks are expected to bring in up to $40 billion in overdraft charges from nearly 50 million customers.

"While all bank customers have been affected, these overdraft fee policies disproportionately affect young people, the elderly and the poor, who are most likely to maintain low account balances," noted Mr. Rogow. "Moreover, these fees have the tendency to create a domino effect, resulting in even more fees."

Further Information for Bank Customers

Bank customers assessed overdraft fees who wish to learn more about this litigation should visit www.bank-overdraft.com where they can submit their complaint to plaintiffs’ counsel.
Contacts

Lieff Cabraser Heimann & Bernstein, LLP
Michael W. Sobol, 415-956-1000
or
Bruce S. Rogow, 954-767-8909
Permalink: http://eon.businesswire.com/news/eon/20091020005332/en/fee/overdraft/lieff-cabraser