The truth is, all banks do NOT do this. Do yourself a favor and see if you can open up an account with USAA federal savings bank.  They credit all your deposits first, THEN take out the debits.
I opened an account with BB and T a few short months ago and am closing it because of other, equally terrible customer service issues and bank mistakes. Your money is NOT safe with BB and T.

I don't know if you took into account the fact that, when you use the debit/check card the amount processed is immediately withdrawn from your "current balance" and then shows up as your "available balance". I was charged an overdraft fee for a $10.00 debit made on Oct. 23, because the bank basically told me that, at the time that the paperwork was presented to them I didn't have the funds in the bank to cover it. I can see why I didn't have the funds to cover it, because the bank deducted it twice , once on Oct. 23 and again on Nov. 4, when the paperwork was presented to the bank. This overdraft created the same problem that this gentleman ran into, in that it created multiple overdrafts totaling to about $140.00, in my case.

I lodged a complaint with my local branch and was given the same run-around this gentlemen was given. Now, since BBT is a series of "Regional Banks", I called the Corporate Offices at 1-336-733-2000 and spoke to Ms. Myrtle Lindsay. Ms. Lindsay told me that she would have someone call me about this. Ms. Lindsay was as good as her word and had a Regional Branch Operations Manager call me about this. After a lengthy discussion with this manager, I was able to explain to her what I was seeing. She was able to pull up the account and the transaction being discussed. After reviewing what I had said and looking at her records, she agreed with me and refunded all of the overdraft fees, she also said that she would bring this up to the corporate levels. I kind of doubt that this has ever been discussed at the corporate level.

I would recommend that this gentleman contact the corporate offices and file a complaint with them, maybe he can get some action from that approach.

All banks are like that, that's why I don't trust them. Bank Of America did that to me a couple years ago. $20 in purchases ended in over $200 in overdraft fees because they did the same thing. I actually saw it in a news report about 6 months ago about how banks order the stuff in highest amounts first so to get as much money out of you as possible.

The same thing happened to me. I owe $600 in overdraft fees on $500 spent. How does that happen? I have no idea! I get my paycheck direct deposited into my account. It shows up on Fridays.

I went out over the weekend and made a few purchases and now all of a sudden, my money is ALL gone and I owe $600 in overdraft. I did the math! It makes no sense. I didn't even spend the money I had in my account otherwise I would've been spending like $1200+ over the weekend.

The biggest charges went through...but the smaller $5 or $7 charges for coffees etc. did not so they each get a $35 service overdraft fee attached. So let's divide $600 by 35 to see 17 charges. Seriously? I didn't even make 17 transactions over this short period of time.

I don't care what it takes. I am not paying this money back to BB&T. If I sacrifice a bad charge on my credit report--I don't care! I REFUSE to comply with this abusive practice.

I sent an email to Customer Service lodging my complaint. I was told that the bank was 'sparing' me from embarrassment when I didn't have money to complete transactions...Well I would rather get a declined card than owe $600 in overdraft fees.

If the MONEY is NOT there then why does BB&T allow you to shop and spend???

Good for you to sue them in small claims.  I recently had an experience similar to yours with US Bank in Kentucky.  They deduct the largest amount first (a bank policy..not a govt requirement) because "that way your car payment or mortgage doesn't bounce".

This allows them to hit you up for every small charge with NSF's.  The truth of the matter is they would pay the car or mortgage payment...and it would be an NSF and leave you a negative balance.  So they're just lieing, basically. Banks don't return items today...they simply pay them and keep you with a negative balance as long as they can so they can charge you $6 or $7 per day it's negative (after 3 days).

Congress is already addressing the "deduct the highest charge first manipulation".

Due to the endless complaints and pending law suits, pressure from congress..and due to the fact that our economy is in a state of collapse..there are some policy changes coming. By next year I predict ALL the major banks will follow suit..many have "voluntarily" adopted these changes already.

One is the right to opt out of the courtesy overdraft protection service..and the other is the end of re-sequencing manipulations for the intent of maximizing the number of fees that can result from a single overdraft.

If ANYONE here is with a bank that does not change these policies..leave that bank..you have better choices now..and will have more in the future.

Now of course it is up to us to manage our finances with personal responsibility..but if you have been hit by the lousy economy and now keep a very low balance in your checking account..you NEED to make sure what little money you have is truly protected. After all you don't want a check that is taking an unreasonably long time to clear..or unexpected electronic payments..merchant error or fraud..an over site or accounting error etc. to clean you out.

YOU ARE EXACTLY CORRECT. TEHY ARRANGE IT SO THAT THEY DEBIT WHATEVER WILL CAUSE THE MOST OVERDRAFTS FIRST. IF YOU HAD 100 DOLLARS IN THE BANK AND MADE 99 1 DOLLAR TRANSACTIONS AND 1 100 DOLLAR TRANSACTION ( LAST) THEY WOULD DEBIT THE HUNDRED DOLLARS FIRST THEN OVERDRAFT YOU FOR 99 1 DOLLAR TRANSACTIONS.

HERE IS HOW THEY GET AWAY WITH IT AND YOU CANNOT PROVE THEM WRONG

" THEY SAY THAT ALTHOUGH THE 1 DOLLAR TRANSACTIONS WERE DONE FIRST AND THE 100 DOLLAR TRANSACTION WAS DONE LAST THE 100 DOLLAR TRANSACTION WAS SENT IN BY THE VENDER 1ST AND THE DOLLAR TRANSACTIONS WERE BATCHED A FEW DAYS AFTER YOUR PRUCHASES. THUS THEY GOT YOU.

NOW THE KICKER, REFUSE TO PAY THEM AND THEY SHUT YOUR ACCOUNT DOWN (THEY LOSE NOTHING BECAUSE IT IS JUST FEES NOT LIKE THEY PAID A CHECK THAT DIDN'T HAVE FUNDS AVAILABLE) THEN THEY REPORT YOU TO THE COMPANY THAT OVERSEES STUFF SO WHEN YOU TRY TO OPEN AN ACCOUNT AT ANOTHER BANK YOUR REFUSED BECAUSE BB&T HAS A REPORT YOU OWE MONEY ON A CLOSED ACCOUNT.( NO EXPLANATION SO IT LOOKS LIKE YOU SKIPPED ON A OVERDUE BALANCE OR SOMETHING) SO YOUR STUCK ALL THE WAY

I don't think the original poster is "financially careless" to the point where they need advice on how to avoid overdraft and NSF fees. I also believe most people understand what causes OD/NSF fees,,and are aware that if they overdraft..there will be fees.

Electronic deposits will not do much to prevent fees although agreed it is faster then waiting for a deposited check to clear..it can still cause problems. Such as it being impossible to stop if you do not wish it to be deposited for whatever reason..such as a dispute with the bank, merchant or a third party.

Writing checks should not be a problem either. Me personally do all my bill paying electronically..and my paycheck is direct deposit..but since I am completely debt free..it is easy for me to manage my finances..now this doesn't mean circumstances never arise that cause problems..there are a lot of shady people out there and scammers..but for some people they actually keep better track of their funds by writing checks. But once again if someone is 'fianacially careless"..is it really going to make a difference?

Now Cj..when you stated " Use your debit card instead. Any transactions done are reflected right away in your available balance"

This is where most people are geting into trouble if you read through the thousands of ripoff reports. Not only are some banks not posting transactions in a timely manor..but they are re sequncing and manipulating them to cause more fees..and additional fees for transactions that in all actuality had the funds available at the time ACCORDING TO THE STATEMENT. So if you really want to help people to avoid fees..the worst advice is to request they trust the bank or any statments from the bank. Most..not all..but most banks have it set up to where what you would call "financially careless" and I would say the 'targeted" young, poor and elderly/disabled on fixed incomes most likely to overdraft..and for a plethora or reasons.

When you state to limit card use to larger purchases, and use cash for smaller purchases...this is very good advice. But...for many people it is a matter of convenience to use a debit card at times. For example if I am stuck in traffic I may need gas before I get home or to my bank branch. I am in the middle of no where so I am not going to get off and look for a bank branch. So my choice is pay a fee at some ATM..or just use the card for gas..maybe a snack and coffee and back on the road. That is one of the purposes for a debit card..convenience..at least that was a selling point to get the debit card..but then again the bank told us the same hype about online banking..and now we know it is unreliable and inaccurate to trust..so yes...we all need to be careful with our accounts..but yes also..we can not trust the bank..kinda sad. Of course if I had cash in my pocket to begin with..this point would be moot..but sometimes you need to use the card for a small purchase.

As far as your suggestion to "set up an overdraft protection of some type"...for myself..the best overdraft protection EVER was when I walked into the bank..and had them put in writing that I opt out or "decline" overdraft protection. Now my card will be declined at the point of sale or an ATM if funds are not available. And for the "financially careless"...there is not better way to prevent the $35.00 soda pop. For someone who is good with their finances..and has a savings account as well..then an overdraft transfer service is good insurance. Unfortunatly most of the people getting fleeced by these banks are barely making it paycheck to paycheck during this economic crisis..much less have a savings account.

My particular bank has an overdraft service (if you enroll) that will transfer funds due to an OD from savings to checking for a fee of $12 if the account is under $10,000..and free if $10,000 or over..so yes for some consumers I could see doing this,depending on what the particular bank has to offer..as unlike what I see many reply here..not all banks are the same.

First off I will say that large banks do  take advantage of the financially careless.  However, you can stay out of fee trouble just by doing a few simple things. First and foremost, have your funds electronically deposited into your account. That way no funds are held and you dont have to worry about "waiting for your check to clear".  Second, avoid writing checks if at all possible. Checks can and are paid with no advance notice to you and can screw up your account beyond all repair.  Use your debit card instead. Any transactions done are reflected right away in your available balance. Third, limit your card use to larger purchases and use cash to pay for smaller purchases. That will make it easier for you to keep track of your spending. Fourth and finally, set up an overdraft protection acocunt of some type. This way if you do slip up and spend more than you have to spend, it wont cost you nearly as much, maybe a few bucks in finance charges or transfer fees versus 35 bucks a pop for od fees.

H.R. 946, introduced in the US House of Representatives on February 8, 2007, would increase regulation of overdraft loan programs. The proposed legislation would Amend the Truth in Lending Act (Regulation Z) to clarify that overdraft fees are covered, require written consent before enrollment in the overdraft loan program, require financial institutions to warn the customer when an ATM withdrawal will trigger a fee, and prohibit financial institutions from changing the order of check clearing or delaying the posting of deposits solely to increase overdraft fees.

This bill was referred to committee in April 2007 and died in committee. As of February 2009, the FDIC was taking comments on the issue.

And remember..if you don't have a linked account..overdraft protection is nothing more then a short term loan. Does this give the bank the right to manipulate and re sequence transactions SOLELY for the purpose of creating additional fees? I think not.

Looks like the OPs fees were caused by 5, 10 and 20 dollar purchases. So the "courtesy" the bank did by posting the largest transaction first causing the avalanche of fees on transactions that HAD the funds at the time of transaction..tell me... which transaction did the bank think was the mortgage payment?

And don't listen to the merchant "holding" or "authorizing" BS..believe me..when the card is swiped..the bank knows it..regardless of what is supposedly "held"..electronic transactions occur at nearly the speed of light...even if you use a check at the grocery store these days...before the food is bagged..believe me the bank knows about the transaction.

...and that's it.  See, when you use your debit card, the money is not taken from your account so that the merchant can verify the transaction.  BTW, it's a great reason they do this, so you don't pay for fraudulent transactions associated with your debit card.  What it means though is that you will not have that money available even if the money isn't removed from the account.

Yes, banks sort transactions from highest to lowest and debits before credits.  This is a situation where using a check register is imperative; you need to keep track of your money spent.  Insofar as to whether this is legal, the answer is YES.

If you don't understand the difference between your account balance and your available balance, the difference between them has to do with pending transactions.  In most cases, your account balance will be higher than your available balance if you use a debit card.  However, the determination as to whether you overdraft your account is based on your AVAILABLE balance, not your account balance.

The only time your available and account balance will remain the same MOST of the time will be when you STOP using your debit card.  There is a lesson here and that is using your debit card is NOT FREE.  It cost you $350 without you even knowing it.  If you happen to be completely confused, my advice would be to STOP using your debit card - right now.  You haven't grasped the idea that this thing is costing you lots of money and all of the math in the world isn't going to help because this isn't a math issue.  It has to do with understanding how money flows into and out of your account with a debit card.

Hey, I read the report about the 4 nsf's from over the weekend. It's not a tactic to try and get as much money from the customers as possible.. The reason they pay biggest to smallest is because they figure that the bigger items are more important than the little 1.00 or so.  Just think of it if it was your mortgage payment along with like 3-4 other stupid little charges.  Then they would pay the little ones and then the most important one would get returned and then you would probably have more problems with your mortgage company.. Fee's

Another solution would be to get Overdraft Funding or Protection.. basically tie another checking or savings to your current checking incase you are short in your account it can pull from the linked account and save you the head ache of fees..

 It is great.  Dont get me wrong... If I would have been in that situation I would get pissed too.  And normally when you use your card it shoudl already take it out of your balance..

 dont know if this helps you at all.. and no they wont go bankrupt. They have been around Way too long and are way too succesful... one of the oldest banks. and are one of the 5th largest in the US.