• Report: #232393

Complaint Review: Banking Industry

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  • Submitted: Wed, January 24, 2007
  • Updated: Sat, March 10, 2007

  • Reported By:Algona Washington
Banking Industry
Auburn Washington Auburn, Washington U.S.A.
  • Phone:
  • Web:
  • Category: Banks

Sound Credit Union,and The Rest Of The Banking Industry ,Charged me courtesy pay fees because funds were "on hold" to clear the transactions? Auburn Washington

*Consumer Suggestion: Items on Hold

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My starting balance on my checking account was @ $279 and some change. I had made some point of sale purchases, as I have been trying to only use my debit card so that it's easier to track my buisness expenses.

Through the week I had made a number of small purchases ($4,$5,$10,$33,ect.) After I made a $100 deposit, I saw that it only brought my account to -$270. I called the call center and they explained that when I made my purchases, they put a hold on that amount of money, so everytime I bought something, that much more was unavailable, but the money was still there.

When Monday came around, and everything went through, I had no "available" funds because they were on hold for the purchases I had made, but the original $279 was still there. That part I understand, but when the purchases went to clear my account, they charged me a $25 courtesy pay fee for every one of those purchases.

If the money was only not available to me because it was on hold to clear my purchases, then why was I charged $225 in fees to clear them. I had to call the bank on three of my breaks at work to try to reason with them that this was not right and didn't make sense.

I got lucky and the manager reversed my fees for me, but said he was making note to not ever do this for me again. And if I wanted to take on anyone about this procedure, I would need to take on " the whole banking industry". I just don't get how this practice is legal. If I make a $10 purchase, and that $10 is put on hold to clear, then it should clear.

Melissa
Algona, Washington
U.S.A.

This report was posted on Ripoff Report on 01/24/2007 09:38 AM and is a permanent record located here: http://www.ripoffreport.com/r/Banking-Industry/Auburn-Washington-98001/Sound-Credit-Unionand-The-Rest-Of-The-Banking-Industry-Charged-me-courtesy-pay-fees-beca-232393. 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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0Author 1Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Suggestion

Items on Hold

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

I work at a financial institution, not this one but I will try to explain what may have happened. When you make a purchase with plastic, like a debit card, the merchant either is online and takes the money immediately OR they will get an authorization and the funds are placed on hold.

What is suppose to happen is when the actual charged comes through and posts the hold will drop off, or the hold expires if the actual charge is not done. If your charge posts and the hold is still on your account the bank should be able to figure that out and reverse your fees. This will happen and though it is no fault of the banks, or yours it is our responsibility to do that.

This can happen when: you go to let's say Costco to buy gas, they will put a hold on your account (before you pump) for $100.00. You only purchase $30.00 in gas. The $100.00 is on hold even though you only spent $30.00. In the meantime you spent more funds overdrawing your account, but not really, just on paper as that $100.00 is not valid. Normally when the charge comes through the hold drops off, BUT most systems look for a dollar amount so there is no match and the hold may have not expired yet. Gas stations do cause the majority of problems like this, just because they set their system to hold a set amount, often $75.00 to $100.00. There are some cooperative gas stations out there that only hold $1.00 to verify the account is open. However, they are taking a risk as if they get approval for $1.00 and you charge $60.00 and when that $60.00 hits your account and you don't have it they could take the loss. They do it to protect themselves as they do not know ahead of time how much you may charge.

It only takes one of these incidents to snowball and once the fees post that really hurts. Check to see if your bank has an effective date for the transactions and a post date... and then ask them about the holds and to explain how you can find out if you have holds on or not. Once I can see that a hold was on for the same transaction that posted and that is the reason for the overdraft, I reverse fees, no lecture or questions asked. This can be confusing. If you keep a ledger/register and deduct all checks/and debit/POS charges as soon as they are done this can still happen but not as often.

I find that when records are not kept and the charges take a few days to post that consumers go off of their on-line balance which can be wrong as it is just like having an outstanding check. hope this helps!
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