Woodforest Bank (ie, Bank At/of Wal-Mart) Also victom of fraudulent banking practices Waynesboro Virginia

I have great credit and have had my account for more than 60 days. They put a 7 days business hold and 11 day total hold on my account (from the 28th to the 7th). I'm closing my account as soon as the interest posts again.

A couple of possible reasons for a hold without any previous holds before:
1. Your employer possibly could have bounced or had returned checks from them recently, and until it is cleared properly through companies like TeleChex they will put a hold to ensure it goes through. Ex. I was working independently for a cable company a few years ago,  and apparently some employees we're cashing their checks on Thursday instead of the listed Friday payroll date, places like Wal-Mart will cash checks without looking at the effective date. Some banks and check cashing services will run their checks electronically and in the case of the company I was working for they didn't transfer money into that account for fraud purposes until Fridays.

Because of that it caused them to be flagged as having been returned. It only took a day for my company to fix the issue and they stopped handing out checks on Thursdays.

2. Another reason is all banks even if they say they don't will put a hold on all checks. Even if it is $5 it doesn't matter the amount. Checks have to be processed through the Federal Reserve Bank in your district. The bank may say that you can take the money out immediately, but in reality it isn't available until it processes. I have worked in the past for a number of years for a large bank in their fraud department. And we dealt with people trying to commit fraud on a daily basis. People would list wrong amounts on ATM machines for their deposits, and wouldn't have the checks listed or they wouldn't have that amount of cash. That is one of the major reasons for holds to be placed. I have had customers with 100's of thousands of dollars in their account and have holds placed on a check for 3 thousand dollars because it needs to be verified.

3. Lastly, all businesses when you use a debit card will place a hold on the account. Whether it be debit or credit, a hold is placed. And some companies will place holds for more then the amount, aka restaurants, bars, gas stations. They need to be sure that the final payment will go through. If you only have 50 dollars in your account and you go to a bar they are likely to hold your card for 20 dollars every time they run it.

I have had customers who would have 150 dollars in their account, go to the bar friday night and get drinks and their total would only be 30 or 40 dollars, but every time they ran their card it was ran for 20 dollars and they had it ran 6 times. And then later that night they got dinner at IHOP and gas and cigs at a gas station. So even though they are only hold every time it was ran counts as a transaction. And in the case of this particular customer they accrued 3 overdraft charges for 35 dollars each.

Jenn,

When a bank places an extended hold on a check, they are required to provide you with a Reg cc form stating when the funds will be available to you, and why they were placed on extended hold. No ifs, ands, or buts. If they can't provide that to you, then I would continue to ask them for the fees back. They can pull up a transaction journal from that day to see if one was printed. Hope that helps.

Yes, all banks do have written policies stating the funds availability and the time frame of holding checks.  However, there are always exceptions to rules.  What I got from the original complaint here is that the paycheck that was held was a routine paycheck that had never been held before and was held because of the amount.  I didn't see in the complaint if the amount was more than the routine paychecks, but I know that banks tend to put holds on checks based on the clerks opinion of being ligit.  I deal with a credit union, but the clerks there have told me on several occasions that them putting a hold on a check is based entirely on their judgement.

I have taken a check to one branch and they wanted to put a 5 day hold on it so i didn't deposit it. I took the same check took a different branch and they not only didn't put a hold on it but they gave as much cash as I desired back right then, because the knew me and that was the branch that I go to weekly.  They have also told me that the "5 day" hold is for them to verify that the check will be honored and if it clears the original bank before then the funds would be available sooner.

My point is that even though there are written policies with specific lengths of time, these policies are "general" policies and subject to the judgement of the banks employees.  They may have had the right to hold the funds, but they should have informed the customer at the time that the deposit was made as to how long the check would be held.  Then they would have had the option to cash it elsewhere and deposit cash into their account.  You should be able to trust your financial institution with your life, after all, it is pretty much overseeing your financial life. You should NOT have to ask every payday if there will be an unusual hold on your funds. 

If they don't have a legal responsibility to inform you when something is out of the ordinary with your account, they should have the common courtesy to do so.

This is based on my experience and the experience of people I know so it is also subject to interpretation.  It is my opinion though that even looking at it from "the banks" point of view, they should want to satisfy their customers and make them comfortable with putting money in their hands.  That would require them to be attentive to unusual transactions and out of the ordinary actions that could possibly cause the customer stress in the future.  It's not rocket science to figure putting a hold on someone's funds when you never have before could cause them some hassles.

The person stating they are a Woodforest employee is obvisouly NOT ...
Nothing of what they stated is accurate..
To clarify:

Hold (or delay of funds) are either 7 or 11 business days.. They can be for a variety of reasons.. Most of which are for the customer's and the bank's protection. The delay of avaliability form should have been handed to you at the time of deposit or mailed to you. (assuming the address you have on file is correct... it's your responsibility to change it if you move)

If you read the form at the bottom it DOES state that if you had a hold placed on your account and the check did NOT charge back and you recieved overdraft fees, then you can get a refund.

Please become a little more educated before posting false information....

also, in the future, call the branch BEFORE calling customer care...

Jenn,

I'm very sorry to hear of your displeasure with Woodforest. The problem is that you are ultimately responsible for what is being spent out of your account.

I don't like banking laws either, but that's the way it goes. Woodforest has excellent web access to account status. You really can't ask for more than that.

If you can come up with a better bank, open it.

Jeremy

JR, in your first paragraph you stated that the banks often times call other banks to verify funds. Yes we do, this but not nearly as often as when you banked in the 80's. Unfortunately 9/11 came along and then after that came the Patriot Act which now means getting the information regarding accounts is near impossible and nobody wants to be sued for giving out private information. Thus, its near impossible to even get account balances from other small or major banks. I know this because I work for the banks now.

Also as I just explained in another post the holds are to protect the bank from the possibility of the item returning. Unforturnately the original poster had only banked with the institution for 3 months which at least at WB, we still consider that a new account. I am sure the bank probably does benefit from holding funds for a bit, honestly I don't know on that one but I can see your point. Yet, once again the holds are more for assuring payment of funds and not losses than the interest.

More power to you and your fight for the original poster but please be aware that we are not all crooks and heck some of us are even trying to stop those that are the crooks. Also you may want to swing by the bank before you go to court and get a copy of their depositors agreement just to overview everything to see if the fight is even worth it at this point.

While I have not had your problem exactly, Jenn, I do empathize with you. Banks like other businesses always claim they are being ripped off all the time and that's why they seem to "feel" these safeguards are needed. The truth is, when you deposit a check, the bank can call the other bank to verify funds and place holds on them. I know because I did that when I was in banking back in the 80s.

I also know that banks do this now but they still have a "hold" on funds for their prescribed time limit because that means they can use your money without you using it for a day or so. Imagine now, 10,000 customers over a three day period with an average of $100 deposit comes to a lot of money they can use - INTEREST FREE - that their customer can't access. See - money talks. Hence the insane policies.

The best advice I can give you is, go to a smaller bank and as you go there to make deposits and when you have questions, form a relationship with the branch manager - aka the banker. You will find they will extend much more latitude to you if you are personable and recognize their policies etc. I have had many happy years with my bank in Richmond and even though I move for work a lot, I still maintain that relationship and account because they are GREAT to me. It's like a spouse, if you're nice to the spouse they'll be nice back and you want to stay -- if not, everyone is looking for overdraft fees and divorces.

Good luck with your situation. I do feel for you. But like I said, personal interaction is key when cultivating relationships with banks, tellers, pharmacists and everyone else you depend on to give you top notch service. After all, how can someone resist a smile and a "hello, how is your day going? I have a little problem and I'm hoping you can be the hero of my day..." Think about it like this, it's basic psychology.

Cheers.

I just wanted to make the comment that holds are placed for reasons. I know people hate the idea but wouldn't you rather look smart going somewhere and not having your card declined than having it declined because the check you tried to cash charged back?

I for one am glad that banks take the time to ensure that they protect themselves and the customer as well. I would rather the money be placed on hold than look like a moron when my check or my debit card was declined.

I just wanted to make the comment that holds are placed for reasons. I know people hate the idea but wouldn't you rather look smart going somewhere and not having your card declined than having it declined because the check you tried to cash charged back?

I for one am glad that banks take the time to ensure that they protect themselves and the customer as well. I would rather the money be placed on hold than look like a moron when my check or my debit card was declined.

I just wanted to make the comment that holds are placed for reasons. I know people hate the idea but wouldn't you rather look smart going somewhere and not having your card declined than having it declined because the check you tried to cash charged back?

I for one am glad that banks take the time to ensure that they protect themselves and the customer as well. I would rather the money be placed on hold than look like a moron when my check or my debit card was declined.

I just wanted to make the comment that holds are placed for reasons. I know people hate the idea but wouldn't you rather look smart going somewhere and not having your card declined than having it declined because the check you tried to cash charged back?

I for one am glad that banks take the time to ensure that they protect themselves and the customer as well. I would rather the money be placed on hold than look like a moron when my check or my debit card was declined.

I work for Woodforest. I can't say I've ever heard of anyone having any major problems with them. However, I do question the woodforest employee as they do in fact have a policy of 10 day holds on deposits at the branch managers discretion. I believe this is usually done with funds they worry will not get paid. I think that in every discussion accurate information is important.

I am a bank employee for another bank that is not Woodforest. First off let me say I cannot believe an employee of any business would make comments in such a shameful manner. Anyway you might want to check and see what Woodforest's business day cut off times are. If you make a deposit after a certain time, especially on Fridays the funds may not be made available until Tuesday morning since a lot of banks consider after a certain time Friday as Monday's business day. Now that information should have been given to you upon opening the account in their Funds Availability Disclosure.

If the banking center manager stated they placed a extended hold on a check to be honest that is their call. The federal regulation is called REG CC which is a case by case regulation that managers can do to protect the customer from having to take large losses on counterfeit and checks written to them that are insufficient funds. It is also there to protect the bank from kiting. I am going to be honest with you though. Most payroll checks are imaged in banking systems and can be reviewed by banks to verify signatures and see how often they come through.

For a bank to basically state that they only place holds on checks above 1500 dollars and place holds if one OD fee has been assessed per month is a violation of Reg CC. I hope the employees understand this before coming on here and calling people stupid. Good luck to you and I hope you get some closure on the issue.

First of all, I am sorry to hear that you've had such a bad experience. I've been banking for many years and have found that my experience with Woodforest has been extraordinary. They have helped me many times and they have been very courteous and professional. No other bank is open 7 days a week/ 365 days a year. Immediate availability of your deposits. No 2pm cutoff time. If you come in and make a deposit at 6pm on Friday, you'll have access to the money on the weekend!! Maybe it's just your location, but the central branches have been wonderful.

I do have a few questions though. Did you ever receive a hold notice? I know a bank can mail you the notice, that is verification of a hold being placed. It is good customer service to contact the customer via phone first, but it isn't required. (I've always been contacted regarding a hold.) Keep in mind, it is a Reg CC hold so it is backed by the Feds. Also, why did you let your account overdraft so high? I know Woodforest has an overdraft limit so items shouldn't have been paid based on your limit. Did the check chargeback or did it clear the bank it was drawn off of? Maybe they've had checks from that company return on other accounts and that's why they held your check? Did you ever try to go above the branch manager? I know you can always find someone higher than the branch manager, all you have to do is ask. If you can't get something resolved, why didn't you go to someone above the branch manager? I don't understand that.

Another question, didn't you try to resolve the issue? Woodforest has an excellent repayment program if you are in a situation that you can't get out of. I know of no other banks that will do it. In essence, it's an interest-free loan. And you can still use your account or get another one! I've had friends that enrolled in that program and they absolutely love it! I've also known someone that actually settled with the branch that they opened their account with. They settled at 30%; meaning 30% of the overdrafted balance was 'forgiven'. I know that there are options out there and to me, it sounds like you'd rather 'bad mouth' the bank than find out what options you have. A word of advice, always go above the person you've talked to if it doesn't meet your satisfaction.

Not all Woodforest branches are as bad as the experience you've had. You might want to see if those associates are still there. Who knows, they could have been fired since then! Good luck!

Although it seems nonsensical, I have seen holds put on deposits the day after the deposit was made. Did you make the deposit close to the closing time? FYI, look into the laws for small claims courts for your area. That may be a worthwhile option to pursue.

I appreciate your response to the so-called "Woodforest Employee". If this fellow really is an employee of Woodforest, he just helped me out alot in my case against them! I double checked my deposit slip from the date, and the date the funds were supposed to be available was the same date as the deposit was made. So, thanks "Woodforest Jerk" for the piece of info, and yes, this does seem to be the attitude of ALL the employees there; the customers are stupid and we obviously don't know what we are talking about. I have encountered this many times when calling customer service, when I keep questioninbg them about the hold, they turn around and get insulting.

I have decieded to persue this in court...and I do have a very solid case. Also, if the account closes automatically when it reaches $300 in OD charges, why are they charging me now almost $1200 on OD charges and fees? Again, whoever reads this, take the info and make your own decisions, but I'd NEVER recommend this bank to anyone!

I appreciate your response to the so-called "Woodforest Employee". If this fellow really is an employee of Woodforest, he just helped me out alot in my case against them! I double checked my deposit slip from the date, and the date the funds were supposed to be available was the same date as the deposit was made. So, thanks "Woodforest Jerk" for the piece of info, and yes, this does seem to be the attitude of ALL the employees there; the customers are stupid and we obviously don't know what we are talking about. I have encountered this many times when calling customer service, when I keep questioninbg them about the hold, they turn around and get insulting.

I have decieded to persue this in court...and I do have a very solid case. Also, if the account closes automatically when it reaches $300 in OD charges, why are they charging me now almost $1200 on OD charges and fees? Again, whoever reads this, take the info and make your own decisions, but I'd NEVER recommend this bank to anyone!

I appreciate your response to the so-called "Woodforest Employee". If this fellow really is an employee of Woodforest, he just helped me out alot in my case against them! I double checked my deposit slip from the date, and the date the funds were supposed to be available was the same date as the deposit was made. So, thanks "Woodforest Jerk" for the piece of info, and yes, this does seem to be the attitude of ALL the employees there; the customers are stupid and we obviously don't know what we are talking about. I have encountered this many times when calling customer service, when I keep questioninbg them about the hold, they turn around and get insulting.

I have decieded to persue this in court...and I do have a very solid case. Also, if the account closes automatically when it reaches $300 in OD charges, why are they charging me now almost $1200 on OD charges and fees? Again, whoever reads this, take the info and make your own decisions, but I'd NEVER recommend this bank to anyone!

I appreciate your response to the so-called "Woodforest Employee". If this fellow really is an employee of Woodforest, he just helped me out alot in my case against them! I double checked my deposit slip from the date, and the date the funds were supposed to be available was the same date as the deposit was made. So, thanks "Woodforest Jerk" for the piece of info, and yes, this does seem to be the attitude of ALL the employees there; the customers are stupid and we obviously don't know what we are talking about. I have encountered this many times when calling customer service, when I keep questioninbg them about the hold, they turn around and get insulting.

I have decieded to persue this in court...and I do have a very solid case. Also, if the account closes automatically when it reaches $300 in OD charges, why are they charging me now almost $1200 on OD charges and fees? Again, whoever reads this, take the info and make your own decisions, but I'd NEVER recommend this bank to anyone!

I am soo sorry about your experience with this bank. I have also experienced similar problems at a different bank. And I agree that it feels as if they are just trying to collect more fees from you and manipulate situations to do so. It is after all, our money they are making money from.

This response is mainly directed at Josh from Woodforest. I think the response posted by an employee of Woodforest is shameful. How dare you call one of your customers stupid! You are not helping your employers case at all. I don't think that Woodforest would be happy to see one of its employees posting that a customer is stupid and a liar! By posting your insensitive remarks, you show that employees of at least your branch of Woodforest are completely uncaring and do not feel any sympathy or compassion for their customers. Remember, you have a job at a bank because people like this customer choose to use your bank. I myself was considering opening up a business account at Woodforest but I am now having second thoughts based on your inconsiderate response.

I work for Woodforest bank, and our policy is to try and approve your funds on the same day that you put it in the bank. However any check that is 1499.99 and up is subject to a hold unless the account has been open for 90 days or if you have 60% of the funds in your account in case your check will not clear. In cases where you are an "active OD" (which means that you get at least 1 OD every 3 months) the 90 day and 60% could be thrown out the window. When you make your deposit if you look on your slip it will say the date that the funds are available. Don't say that it dosen't because you would be a liar. Everyone get's one! If you don't you are stupid! Also look at your online banking, WHICH according to your statment you have been. Also the bank never holds anything more than 5 days. Also your account is auto-closed when you have reached $300 in OD fees.

Sorry to call you out on your lie!

I work at a bank but it is not Wood forest. I'd like to try to explain what I understand to have happened by reading your post.
The "pending" transactions I believe are debit card purchases. When you make a purchase and the sale is approved, your bank creates a hold. A reminder for you that the money is spend. The length of the hold will depend on your banks policies, some are only for the day of purchase and some are for 3 days. When the merchant runs their batch on the card machine that is what puts the documentation through to your bank for the money to be paid and the transaction to post. In most cases it is just a day or two, but it is under control of the merchant and not the bank.
As for the deposit hold of your paycheck, unfortunately one factor for placing a deposit hold is the number of overdrafts you've had in your account. I'd suggest seeing if your employer has direct deposit available and then there would not be a hold on the deposit. It would be available the date of posting per your banks posting order. And while your account had money in it when you made the deposit, since the deposit was on hold and not available, your account did not have enough in it to cover the transactions you made.
Have you asked for a courtesy refund of any of the fees? The bank I work at does courtesy refunds and in a case like this where notification of the deposit hold was delayed, the customer usually does get a refund.
Again I'm sorry to hear that this happened to you and I hope my information helps you out.

To Steven...Having banked for 3 months at this particular bank branch, depositing a check every other Friday, at the window, and never having a hold put on it, it was very suspiscious of them to put a hold on THIS check, when I went to the window, with NO notice, and NO consent. If I had ANY prior knowledge that this check would have been put on a hold, I would have just gone to my company's bank and cashed it, and deposited cash. My point of this rip-off report is that they did act unethically and potentially illegially, and hopefully this will help someone else before they get ripped off as well.

Apparently Woodforest Bank manipulates the laws in order to generate profits at the expense of their customers, which is how I can see things from their prespective, which you suggested I do. Also, do you do any online shopping? Do online Bill Pay, or any other day to day activities that could potential leave you vulnerable, simply out of convienance? Of course you do, so why criticize someone else for acting on convienance.

You didn't state how you deposited your check either through ATM or the bank window. If you took it to the bank window and nothing was stated about a hold, then what they did is illegal because if they place any holds on your deposits, they are supposed to let you know. If you did it through an ATM, then it may be legal but would depend on their banking agreement. This whole thing sounds very suspicious and it appears the branch manager is being an a$$ and possibly skirting the law illegally generating more money for the branch, thinking he can get away with it.

I would file a complaint with the Virginia Bureau of Financial Institutions located in Richmond, Virginia and let them know of this practice. This is a branch that operates from the State Corporation Commission. This website (ripoff) will probably redact the phone number and website, so you can go to the state official website and locate them.

Good luck!

You didn't state how you deposited your check either through ATM or the bank window. If you took it to the bank window and nothing was stated about a hold, then what they did is illegal because if they place any holds on your deposits, they are supposed to let you know. If you did it through an ATM, then it may be legal but would depend on their banking agreement. This whole thing sounds very suspicious and it appears the branch manager is being an a$$ and possibly skirting the law illegally generating more money for the branch, thinking he can get away with it.

I would file a complaint with the Virginia Bureau of Financial Institutions located in Richmond, Virginia and let them know of this practice. This is a branch that operates from the State Corporation Commission. This website (ripoff) will probably redact the phone number and website, so you can go to the state official website and locate them.

Good luck!

You didn't state how you deposited your check either through ATM or the bank window. If you took it to the bank window and nothing was stated about a hold, then what they did is illegal because if they place any holds on your deposits, they are supposed to let you know. If you did it through an ATM, then it may be legal but would depend on their banking agreement. This whole thing sounds very suspicious and it appears the branch manager is being an a$$ and possibly skirting the law illegally generating more money for the branch, thinking he can get away with it.

I would file a complaint with the Virginia Bureau of Financial Institutions located in Richmond, Virginia and let them know of this practice. This is a branch that operates from the State Corporation Commission. This website (ripoff) will probably redact the phone number and website, so you can go to the state official website and locate them.

Good luck!

You didn't state how you deposited your check either through ATM or the bank window. If you took it to the bank window and nothing was stated about a hold, then what they did is illegal because if they place any holds on your deposits, they are supposed to let you know. If you did it through an ATM, then it may be legal but would depend on their banking agreement. This whole thing sounds very suspicious and it appears the branch manager is being an a$$ and possibly skirting the law illegally generating more money for the branch, thinking he can get away with it.

I would file a complaint with the Virginia Bureau of Financial Institutions located in Richmond, Virginia and let them know of this practice. This is a branch that operates from the State Corporation Commission. This website (ripoff) will probably redact the phone number and website, so you can go to the state official website and locate them.

Good luck!

Every bank has a funds availability statement which you are given that states how long funds are held prior to being posted to your account. Doesn't matter if it is a company check, cashiers check, or money order.

Funds availability is gradually lifted the longer you have an account at a bank.

The best bet for a payroll check is to do a direct deposit. There is generally no hold on these (from my experience anyway) the money is immediately available.

You can try negotiating with them to lower the fees but ignorance is never an excuse.

To play devil's advocate for a minute you should try seeing things from the banks side. You would be shocked at the number of things people try to rip off banks by kiting checks (which is why they place holds on the funds).

Next time doing business with a bank as them what their policies are beforehand in stead of just switching for convenience.