• Report: #358239

Complaint Review: Bank Of America

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  • Submitted: Fri, August 01, 2008
  • Updated: Mon, August 04, 2008

  • Reported By:South Boston Massachusetts
Bank Of America
http://www.bankofamerica.com Boston, Massachusetts U.S.A.
  • Phone: 800-841-40000
  • Web:
  • Category: Banks

Bank Of America Exorbitant Overdraft Fees Process Largest Transaction First No Opt Out Courtesy Pay Boston Massachusetts

*Consumer Comment: You don't listen anyway

*Consumer Comment: Steve why must you put people down

*Consumer Comment: The REAL "simple fix" is called a CHECKBOOK REGISTER!!

*Consumer Comment: Deadbeats don't have bank accounts.

*Consumer Comment: You really are not as important as you like to think you are

*Consumer Comment: simple fix

*Consumer Comment: What If a company makes a unauthorize

*UPDATE Employee: Overdraft Fees are designed to teach people to NOT spend money they don't have...

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Bank of America charges exorbitant overdraft fees. I have been charged overdraft fees on transactions as small as $.02. They also:

1. Prey on the most vulnerable, usually the poor, who can least afford to pay these fees;

2. Process the largest transaction first when posting transactions for any given business day so that the consumer ends up paying more overdraft fees. For example, if you had $100 in your account, the bank would first process an $101 charge followed by two smaller charges of $5. So you would get charged 3 overdraft fees in this way. If they processed the 2 $5 charges "first," then you would only receive 1 overdraft charge;

3. The bank has a history of being very strict about waiving these fees. Google Bank of America overdraft fees Boston Globe. You will find a memo corporate sent to branches advising them not to waive fees;

4. The bank does not offer an opt out mechanism for so-called "courtesy" pays on overdraft items. E.g. you cannot tell the bank to just deny any charges that would result in overdraft and thus the overdraft fees;

5. The bank does not disclose its revenues from these fees, but we can surmise that the bank makes huge profits on these fees again typically from the most vulnerable from a financial perspective, e.g. people living on the financial edge paycheck to paycheck.


I would recommend that anyone in the Boston area or beyon openh a Fidelity MySmart Cash Account. They don't charge overdraft fees, they waive fees that any bank charges you for ATM cash withdrawls, no fees for checks, etc. They also pay interest on your deposits, and you may get access to your direct deposit one day earlier than you would with a traditional bank. The only disadvantage, and literally the only one I've found, is they will take 4 days to clear even an in state check that you present for deposit. However, direct deposits clear immediately.

If anyone can suggest another local bank that does not have these overdraft fees, please add a comment. I would like to close my BOA account and open an account with another local bank e.g. for depositing checks, etc. But 95% of the banking is done through Fidelity.

You can also find more about this Fidelity account in the Boston Globe archives.

I would also be very interested in any legislation, class action lawsuits, or public relations campaigns against BOA or other institutions that charge these predatory fees that resemble fees from loan sharks, or payday lenders.

BOA is basically a legalized loan shark in this regard. I have more respect for a traditional loan shark for at least they will admit they will wrip you off. The spin BOA puts on these practices is deplorable and just as bad as any criminal or actually worse than organized crime or a petty street criminal!

Boston1
South Boston, Massachusetts
U.S.A.

This report was posted on Ripoff Report on 08/01/2008 03:38 PM and is a permanent record located here: http://www.ripoffreport.com/r/Bank-Of-America/Boston-Massachusetts/Bank-Of-America-Exorbitant-Overdraft-Fees-Process-Largest-Transaction-First-No-Opt-Out-Cou-358239. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 8Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Comment

You don't listen anyway

AUTHOR: John - (U.S.A.)

as proven by your ignorant, incorrect, fraudulent replies when knowledable people tell you the way it is as well as you not leaving when people tell you to. When are you going to leave like you promised in your fraudulent schneider thread?

Deadbeats don't have bank accounts.

Which lie is it:
1) You allegedly have a bank account and refuse to pay those you owe
2) You have no money as your excuse in the collection threads and just beat people out of services anyway?

One of these HAS to be a lie. Though not surprising.
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#2 Consumer Comment

Steve why must you put people down

AUTHOR: Charles - (U.S.A.)

Steve why must you put people down. This will turn people of real quick & they will not listen to you or your advice. People don't appericate you calling them names.

Companies do make unauthorize transactions causing people to be In a mess to be introuble with there banks. These businesses love to mess up people & they do It on purpose.
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#3 Consumer Comment

The REAL "simple fix" is called a CHECKBOOK REGISTER!!

AUTHOR: Steve - (U.S.A.)

I get so tired of all these dimwits who cannot keep an accurate checkbook register and/or manage the 3rd grade task of managing a checking account.

It simply amazes me.

Simple solution to NSF fees.

Keep an accurate checkbook register.
DO NOT use online banking to determine your available balance.
Stop spending money that is not posted to, and available in your account.

STOP FLOATING TRANSACTIONS!!

I have never paid an NSF fee in 30 years of banking!
It is a CHOICE!

I choose not to pay them.
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#4 Consumer Comment

Deadbeats don't have bank accounts.

AUTHOR: John - (U.S.A.)

Which lie is it:
1) You allegedly have a bank account and refuse to pay those you owe
2) You have no money as your excuse in the collection threads and just beat people out of services anyway?

One of these HAS to be a lie. Though not surprising.
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#5 Consumer Comment

You really are not as important as you like to think you are

AUTHOR: John - (U.S.A.)

'Something bought 3 weeks ago that the bank held on to untill my balance was low, then they processed the larger items first, then the smaller ones making my balance rise.'

--You can think all you want that they are paying someone to sit there and JUST monitor YOUR account - as this is the only way your ridiculous conspiracy would even remotely work - but that just sin;t the case. You, yourself stated you are spending based on what the online balance is and THAT is where YOU are wrong. It is by what your register says that allows you what to spend.

'Criminals.'

--Yes you would be for passing bogus transactions as if you actually had the money.

I would love to see the olden days of double fees. That would really get idiots that overspend pissed.
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#6 Consumer Comment

simple fix

AUTHOR: Ad4 - (U.S.A.)

A simple fix for all of that?


Bank of America (and all other banks) should just be forced by the law to NOT approve a transaction that there isn't money for. Then customers will be happier and fewer people would be willing to close their accounts.

I've had the same NSF nightmares with BOA, It's like this

1. I spend money on a few transactions, I go online to check my account activity, I see 3 things, 2 pending transactions for 14.85 and 13.90 done as credit, and 48.55 done as a debit and it shows 22.70 out of the 100 dollar deposit left.

Then the next day I make a 13 dollar purchase and go check my account and it shows OVERDRAFT charges on the purchases of 14.85, 13.90, 48.55, and 22.70, so that's FOUR OD's.

How?

Something bought 3 weeks ago that the bank held on to untill my balance was low, then they processed the larger items first, then the smaller ones making my balance rise.

Criminals.
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#7 Consumer Comment

What If a company makes a unauthorize

AUTHOR: Charles - (U.S.A.)

What If a company makes an unauthorize transaction. But why should banks make you pay the price If you didn't authorize the transaction & the business caused you overdraft fees.

Why do still want to get the custormer introuble for what the business did & close there bank account this isn't fair. The business has to pay you back all the non sufficent fee charges.

But banks want to punish the custormer & that Is not fair.
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#8 UPDATE Employee

Overdraft Fees are designed to teach people to NOT spend money they don't have...

AUTHOR: Anonymous - (U.S.A.)

I am a telephone customer service agent at Bank of America. I come on this site and laugh daily at all the complaints of the OD fees that our bank charges. Truth is, virtually every bank has overdraft fees. Bank of America is not a money loaning service, and when you cannot manage your own money and be responsible and keep track of your purchases, that is how money gets overspent. You are spending money that you do not have, so really B of A is lending you that money in a way. The fee for letting you borrow that money is the OD fee.

On the topic that you cannot 'opt-out' of us paying your overdraft, you ABSOLUTELY can, but then this is whats going to happen when you continue to spend your money frivolously and not track your own purchases:

1. You have $30 dollars in your account and a check comes in to clear for 35.00. That check will be presented to your account for payment, and then be rejected for NSF (non sufficient funds) and returned to the person you wrote the check or payment to.

2. You will STILL get a $35 charge for having us process the payment and get an NSF fee.

3. On TOP of our fee, companies and businesses charge a returned item fee, which is solely their discretion.

4. That company will keep trying to collect the money you owe them from your account, so each time they send it in for payment and you still don't have the money there is another $35 NSF fee on your account.

So....you can clearly see the 'opting-out' of us paying the Overdraft for you and charging a fee is stupid, as it is very obvious that you would incur more charges in the long run that way. It is a customer courtesy for us to lend you the money that you have overspent and that is why we charge you the fee. If you called us to opt-out, then you would be up here writing rip off reports then complaining that Bank of America didn't pay off your 4.94 charge at Starbucks and returned the payment and charged you $35!

Also, in regards to the refunds of those fees.....we as associates HAVE NO SAY on whether or not you get the OD or NSF fees back. There is a computer program that runs the fees, and it runs the information on your account including how many times in the past 90 days and 1 year you have had NSF or OD occurrences and your average balances in the account, and it pops up and says whether or not we are allowed to reverse the fees. If it is not a bank error or an authorization error from the merchant, and they are valid charges that you made on your account, the fees will be charged, period.

Bottom line is that people need to learn how to manage their money. Technology has come leaps and bounds since the days of only writing paper checks and it taking up to a week to clear from your account. People have gotten so used to 'floating' money either through checks or using their debit card as 'credit' and hoping it doesn't go in for a few days. The times have changed, and you can no longer do that. When you swipe that card, your money is put on hold to be paid to that merchant, it's already gone. Don't spend money in your account that is not there!
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