• Report: #236631

Complaint Review: Southwest Airlines Federal Credit Union

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  • Submitted: Tue, February 20, 2007
  • Updated: Sun, February 25, 2007

  • Reported By:Dallas Texas
Southwest Airlines Federal Credit Union
2430 Shorecrest Dallas, Texas 75235 Nationwide U.S.A.

Southwest Airlines Federal Credit Union Charging $25 overdraft fees for preauthorizations and the actual charge for the same transaction ripoff Dallas Texas

*Consumer Suggestion: My Credit Union does same thing.

*Author of original report: Reversed the overdrafts

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My Credit Union started charging me overdraft fees for transactions that involve a pre-authorization for the purchase and then the charge for the purchase when the purchase is shipped. If the actual charge appears before the pre-authorization expires, the Credit Union deems my account in overdraft and charges me $25.00. The charge and the pre-authorization are clearly for the same purchase. I only move the amount needed for the transaction into checking just prior to the order to limit my liability. Now my financial institution is taking advantage of me.

Dallas, Texas

This report was posted on Ripoff Report on 02/20/2007 07:47 AM and is a permanent record located here: 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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#1 Consumer Suggestion

My Credit Union does same thing.

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

I have two credit unions and both do the same thing. They all seem to use the same banking program which results in many transactions being held for double the amount. Also, it usually happens on the weekends and especially long weekends (actually that's when you notice it the most). It doesn't happen just with online transactions, it happens with all credit/debit transactions, whether you use your pin or not. Look out for this:

When you go to a merchant and they swipe your card (or you swipe it), the hold is placed on your account. If the merchant runs their batch that night, the charge gets "soft posted" to your account. It is listed as a "Pending Withdrawal" on your online banking and is subtracted from your balance. However, the hold against your account is not removed so it is still held off the balance after the "soft post". In essence, it is being held twice.

For example (this actually happened to me tonight). I had a $100 balance and $100 available balance (number changed). I went into a store and charged $10 (actually debited because I used my pin). When I got home, my balance was $100 and my available balance was $90. That was correct and the way it was supposed to be. Hours later I checked my account again. The $10 charge was "soft posted" and listed as a "Pending Withdral". My balance is now $90 and my available balance is $80, resulting in a double hold of my $10 charge. Christmas weekend really stunk because I made $100's of charges that weekend and everything was double held. It fixed itself on the next banking day.

Be on the lookout for this practice. Although I don't agree with it, the credit union is still better than commercial banks.
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#2 Author of original report

Reversed the overdrafts

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

The Credit Union did refund my overdraft fees after a series of conversations that proved fruitless to explain why something is overdrawn when money is sitting in the account. I would like to thank Southwest Airlines Credit Union for doing the right thing. I will also stop using a new online retailer who obviously has a billing issue.
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