Report: #1323082

Complaint Review: US Bank

  • Submitted: Wed, August 17, 2016
  • Updated: Wed, August 17, 2016
  • Reported By: NeverAgain — Long Beach California USA
  • US Bank

    Nationwide
    USA

Show customers why they should trust your business over your competitors...

US Bank has set policies and procedure in place that induces a high chance for overdraft fees to be issued. Over the last 6 months there are a number of occurences that has resulted in high costs, and put me in dire circumstances that ended up affecting my reputation, stress, anxiety, and affecting aspects of my life due to the financial consequences of fees.

1.  I never opted for overdraft protection and wanted any transactions with my debit card to be declined when I do not have enough funds to cover it.  Time and time again, the transactions would go through and I would then be assessed a $36 insufficient funds fee that sets me back more and more each time that it happens into the future.

2.  The Available Funds amount in the mobile app is usually not correct - by a large margin.  I would make a purchase that is within the limits of stated Available Funds only to find out the next day that I am in the negative due to inaccurate accounting and inconsistent holds that didn't occur to let me know that I have less available funds.

3.  Their funds transfer options are deceptive.  On their website, they have 2 options for funds transfers to another bank account.  The first is Pop Money, which takes 3-5 days to transfer funds.  This is an unusually long window of time and is not reflective of the needs of people.  People need the money as soon as possible and with current technology, shouldn't take 5 days.  And once initiated, the funds to be transferred are HELD, no longer available for spending.  But it is in limbo for 5 days!  No one has access to the funds during that time.  The second option isn't called Pop Money but I found out the hard way that this is the ONLY option; it's all Pop Money.  They try to make it seem like another option and faster than Pop Money.  I was out of the country and 3 days prior to coming back, I initiated a transfer with the latter method.  Well they held $1000 to be transferred and I found out 3 days later that it wasn't successful.  So guess what, the system is set automatically to send it out AGAIN.  So the $1000 that I needed so desparately was in limbo for 5 days and I had no access.  It made it to the destination account this second time (of course US Bank messed up the first time) but I had to borrow money from 2 people to make it through the 5 days.  And for whatever reason, this bank stops almost all money transactions over the weekend.  If you don't make the cutoff time on Friday, you are SOL until Monday.  I was stranded at LAX for 4 hours trying to borrow money and waiting for someone to deposit into my account during that time.

4.  Funds aren't released in the order that the transactions occur.  I went on Wells Fargo's website to initiate a car payment on a Friday.  Wells Fargo sends the order to draw out the funds on Saturday morning.  But as mentioned earlier, US Bank literally stops operations over the weekend.  Well, they didn't release the funds until the FOLLOWING Tuesday and I assumed that my available balance reflects the payment made.  By the following Tuesday, I didn't have enough funds to cover the payment and that was when US Bank decides to process the payment order.  NOT Monday, but Tuesday, when I didn't have enough funds.  Of course that triggered insufficient funds fees on US Bank's side and I had to fight tooth and nail to get that waived despite the fact that it wasn't my fault.  And guess what?  Wells Fargo charges me a late fee even though I initiated the transaction 4 days before it was due.  Luckily, Wells Fargo understood and waived the fee so that I didn't have to eat it or waste time trying to get US Bank to cover it, which they wouldn't anyways.

5.  In summary, US Bank will send out money and do accounting in a way that is conducive to THEIR profitability and at an expense to you, no matter how blantantly egregrious the circumstances may seem.  Lastly, their customer service is amongst the worst there is.  There is no empathy or understanding and they argue for the sake of arguing just to justify not having to take action. EVERYTHING has to be authorized by the supervisor, even waiving a fee due to their fault.  They just put warm bodies on the phones and they are not even sufficiently trained.  I had a representative respond to my complaint that the Available Balance is way off by telling me:  "you should keep your own ledger of charges."  And of course the manager says to me..."my wife and I keep our own ledgers" - suggesting that their app is completely unreliable.  So according to them, everyone shouldn't depend on the app or online account balance, you need to keep an up-to-date spending ledger at all times.

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This report was posted on Ripoff Report on 08/17/2016 04:14 PM and is a permanent record located here: http://www.ripoffreport.com/reports/us-bank/nationwide/us-bank-accounting-rules-conducive-to-triggering-overdraft-fees-long-beach-nationwide-1323082. 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
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#1 Consumer Comment

Time for some education....

AUTHOR: Robert - (USA)

First off let me just focus on the one thing you got right in this entire post....

...only to find out the next day that I am in the negative due to inaccurate accounting...

You are right it was inaccurate accounting..YOUR inaccurate accouting.  So let me educate you a bit taking each of your points.

1. See Point #2

2.  You may never have opted in to Debit Card Overdraft Protection, but that does not mean you are now immune from overdraft fees.  You see your "app" only knows what the bank has processed.  If you have a check, ACH, or even another debit that the bank hasn't recieved yet..of course the app will show a higher balance becase it isn't a mind reader.  Also, in many cases the bank is bound by Federal Regulation to pay the request(such as a delayed debit) even if it would put yuou into an overdraft situation.

You see at the time you made the purchase the bank shows you had an available balance to cover the payment, so it was approved.  Now, if at a later time something else comes in such as an ACH that is not covered by opting out/in and the bank has the option to either pay the ACH/Check or return it unpaid.  Now, you say..well they should just return the check unpaid so I don't get charged an Overdraft fee.  Yes, they could do that but then you will be hit with an almost equivalent NSF check fee from your bank, AND the bonus of a returned check fee from the company that you just bounced the check to. 

3. You are giving the "NeverAgain" theory of banking which does not exist. 

Banks regardless of what you think do NOT post transactions over the weekend or holidays.  Yes, you may see items from your debit card show up as "pending" over the weekend but that is not posting.  You may see a deposit you made show up on a Saturday...but that is NOT posted or available.  The 3-5 days you listed is actually about standard for a Money Transfer. 

By the way if you had $1000 in another account why did you need to transfer it?  Why didn't you just use that bank's Debit Card to withdraw the funds?  Also, if you seem to have $1000 at will to transfer and always overdraft in another account..why do you have both accounts?  Consolidate and keep your balance well above the OD stage.

4. Again Wells Fargo didn't send anything on Saturday Morning.  Yes, according to Wells Fargo they may show it was processed and it may have shown up on Saturday morning.  But it was not physically sent to US Bank until Monday and as is standard with ALL ACH transactions they are processed overnight the day they are received.  So if it is received on Monday, it gets processed Monday Night/Tuesday morning.

Now this statement pretty much says it all and relates to the first statement I referenced..

So according to them, everyone shouldn't depend on the app or online account balance, you need to keep an up-to-date spending ledger at all times.

- CORRECT..YES..SI...OUI...JA....

But again the point is that this is the case with ALL banks.   There isn't a single bank that will tell you that you should rely on their App/Online/Phone/ATM banking balances as the sole method for your acount management.  But that does not mean they are "completely unreliable".   All of the transactions will eventually show up, it is just a matter of various systems processing various types of debits/credits.  Some may be sent as soon as you swipe your card, others could take 1-7 days for the bank to receive it. 

But they just are not mind readers or able to see into the future.  The bank has no way to know what you have spent until the bank receives it.  So in a case where a merchant doesn't send a transaction for 3-4 days during that time as far as the bank knows, you have not spent the money yet.  But if you keep a register you know you have.

However, they are also a very good "tool" in mananging your account where you can see the transactions in a way that it makes fraud easier to detect.  After all if you look at the balance and see a $500 withdraw you don't know about it makes it really easy to put a stop to your card, compared to the old way where you would have had to wait until your monthly statement arrives.   It is also great for things such as making sure auto deposits and debits did get processed.  After all if you are expecting your paycheck to be deposited on a certain date, it is good to go into the online banking and see that it is actually there.

Now you can use  your "NeverAgain" wisdom and say that this is not the way it "should" be...but unfortunatly it is and it does not matter what bank you are with.  So if the next words are "Well I am going to go over to Wells Fargo because they are more accurate".  If you don't change your ways, we will see you back here.

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#2 Consumer Comment

A free check register and a $6 calculator could change your life

AUTHOR: coast - (USA)

The bank manager is absolutely correct. You are responsible for maintaining a current check register. The online register does not reflect outstanding transactions but a current check register will always be accurate. If you continue to refuse to maintain a current check register then you will continue to suffer from overdraft penalties.

It’s your choice if you want to be a responsible account holder or continue to blame the bank for your poor bookkeeping habits. Your bank will cheerfully provide you with a free check register.

After you establish yourself as a responsible account holder you may qualify for a credit card so you won’t get stranded again.

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#3 Consumer Comment

Wrong

AUTHOR: Stacey - (USA)

What you have failed to do is take responsibility for YOUR bank account - meaning balancing your checkbook and your monthly statement.  Online balances are NOT correct!! YOU spent more money than you had so therefore you messed up your bank account and NO I do not work for them. 

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