Old National Bank NSF RIPOFF BY OLD NATIONAL BANK Indianapolis, Indiana

I had a similar situation recently, ronnie g. I mistakenly scheduled my mortgage to be paid a day before my paycheck deposited into my account. Old National sent the payment and overdrew my account. I figured, "what the heck, my fault" and was willing to eat the overdraft fee. After some payroll snafu and a lot of other mitigating factors, I asked for a refund of the NSF fees. The manager reversed the fees for me, for which I was greatful. I did ask about the online banking sending out payments when the balance of the account is less than the payment amount. I was told that it was my reponsibility to insure the funds were available for a bill paid through online banking. Long and short, if the payment is scheduled, regardless of your balance, Old National will send the payment. If there are ten payments scheduled and you have no money, they will still send the payments and charge you NSF fees. If the amounts of your overdrafts are too high, the bank will charge you the NSF fees, cancel the payment to the debtor, and likely charge you a fee for cancelling the payment. Not to mention the charges you will receive from the debtor for cancelling the payment. I called the 800 number when the payment was processing because I knew the payment wouldn't clear without causing me to be in the red and they said they couldn't stop the payment. However, when the mortgage processed (posted) the bank called me and said they were thinking of reversing the mortgage payment because i was so far overdrawn. This didn't make sense to me because they said they couldn't reverse it prior to the NSF fees.

This week, my truck payment was sent to the biller earlier than usual (because of the MLK holiday). I didn't have the money to cover it when it started processing, Friday the 16th. I went to the bank on Saturday the 17th and deposited a check that would cover the truck payment. Well, because of MLK day, the bank is holding onto my money until the 20th and the truck payment is scheduled to come out on the 19th. I am probably looking at more NSF fees. I called them again and they put it back on me. I had some 20year old girl telling me how to manage my money. I asked her the same question, "Why does Old National Online Banking send money for bills when there isn't money in the account?" She told me they do that a service for the customer because some people would rather pay the $35.00 NSF fee than have their payment show up late. This is stupid. Changing Banks this week! I called a new bank, Star Financial, and they set me up with a great interest bearing account with no fees. I asked them about online banking. They said if there isn't enough money in the account, they don't pay the bill. Hmmmmmm, great idea, wish I had thought of that.

Overdraft fees have APRs ranging from 1,067% to 3,520%.

Explains why the bank likes them..encourages them..and will continue to if allowed. Some bank defenders claim that overdrafters are some kind of burden on the bank..the report seems to prove otherwise...since if these customers were so bad for the bank..why does the bank not close the account? And why does the bank cover the overdrafts to begin with?..well that is obvious. I guess the "risk" is worth the "reward..oh the banks know what they are doing..believe me.

Banks operating automated overdraft programs reported a median transaction of $36.

This tells us the reason the bank uses for re-sequencing (to process large transactions first) is total nonsense and unnecessary... according to the report and many customers.


Young adults paid the most in overdraft fees and were responsible for the most NSF transactions.

Because these are inexperienced bankers...very easy to fall into the trap. If the bank really wanted to prevent these overdrafts from occurring..they EASILY could..but then they would not be able to make all that profit...so why would they want this to stop?

Customers in low-income areas were more likely to pay recurrent overdraft charges.

Another "prime" target. The lower income customers were hit hardest by the recession..perfect time for the banks to strike. After all..the banks policies are set up to most easily overdraft customers who keep a low balance..their many tactics encourage this...and the bank can make the poor suffer more so the executives can buy another jet.


Customers were automatically enrolled in overdraft-protection programs.

Thankfully, most banks have decided on their own to stop this tactic voluntarily..before the pending lawsuits are done..and before the legislators let it rip..smart move by the banks actually..I am sure they did not want to change this policy..as when combined with the re-sequencing...nets them a fortune in profits.

Banks process large debits first; making overdrafts more frequent.

Correct..the FDIC is apparently smart enough to figure this out. As to wit..this HAS to be the ONLY reason the banks would continue to use this tactic these days.

Banks allow ATM and debit card overdrafts, but do not alert customers in advance.

No, they do not alert us. Which they should. Because how do they know the overdraft is not a result of error, fraud or theft? They just assume everyone wants to spend 35 dollars on a cup of coffee or a cheeseburger? Surely the banks are not that stupid..quite the contrary..this is NOT something the bank wants to "alert" anyone about..otherwise they will not be able to charge all the outrageous fees.

So I have been banking with Old National bank since I was about eight years old with my first savings account.  I am now 23 years old and married.  We have three money accounts with Old National.  One for me, one for my wife and a savings.  I was recently in Afghanistan for a year and my wife was using my account to pay certain bills.  With having so  many accounts with them she some how confused which card went to which account and by mistake used the wrong one about 4 times.  We had more than enough money in my account to cover what was paid for but not in hers.  We have never had a overdraft charge at all.  This was the first time.  I called customer service because I am a customer who needed service.  They told me the same thing they told you.  I had to call the local branch.  So I did but the manager was out.  So I had to call back.  With the 15 years of loyalty and even going there for my mortgage all they could do for me was take one of the four fees off.  Thanks for the same kind of support I have given you Old National.

..many banks recently are conveniently changing their policies "voluntarily" to stop doing these types of manipulations.

Now what some bank defenders may do..is come on this site and tell you that you are a criminal for overdrafting..and are financially irresponsible..and should just pay the fees and chalk it up as a learning experience... or leave the bank if you don't like it. Or that you are all at fault and must be a moron because you signed some kind of a contract with the bank that states you will allow them to do this to you.

However..their insults and belittling will never explain how the bank can take transactions that had the funds at the time of transaction...and were cleared previously..to be manipulated (or what I like to term "the bank altering time itself") for the sole purpose of maximizing fees.

Now you take responsibility for the house payment going through sooner then expected..so you are not looking for a free ride, and not looking to rip off the bank and it's customers. You are not a drug addict or a derelict..right? Just an honest hard working American..you had a payment that went through early..and the bank had the nerve to treat a customer like that for a single NSF..where you even in good faith deposited money the next day to cover it..and take full responsibility for the "legitimate" overdraft/NSF that occurred.

I am waiting for some jackass to come on here and say the steak dinner was "held" at the restaurant..even though it showed "clear". If this is the case..perhaps the banks need a lesson on what the word 'clear" means..or what the word "available" means..or what the word "courtesy" means...and what the word "protection" means...because like the way they alter and manipulate time in their favor..they seem to do the same thing with word definitions as well.

But soon I have a feeling..we will be seeing less and less of these type of reports here.