Compass Bank Charge overdraft fees of $38.00 outrageous and posts debits before credits! This is how they make their money Azle Texas

Let me start by saying that I agree that the amount of the fees is excessive, and their application is draconian. That being said, your information isn't very good.

Credits do not have to be posted first. Banks can post in any order they choose, as long as they disclose the method when you open the account.

They are not 'holding deposits'. They process all their work at night. Cash will be available immediately, and checks on a pre-determined schedule. The maximum allowed time for check holds is set by the government.

If you are trying to beat checks to the bank by making a last minute deposit, it means you are writing checks or using a debit card before the deposit, and in point of fact this *is* illegal. It is rarely prosecuted any more, but if the bank, or merchant, chose to do so, they could pursue it and you'd find a sherrif at your door.

Try not using your debit card for a while. Write checks instead, and make sure you can cover them. You will find that the overdrafy fees will evaporate.

Posting debits before credits is not illegal in and of itself. Anyone who tells you otherwise is either uninformed or lying.

If an account holder is living within their account balance and not making transactions or writing checks that would bring the account balance in the red, then it doesn't matter if the bank processes credits first or last.

If that account holder is attempting to "float", then there could be a problem as the funds in the deposit won't be available when the transaction is made or the check is presented.

You've paid quite a bit of money in fees and I'm sure that you don't want to pay anymore. Here is how to avoid dong so:

Maintain a record of your account balance (otherwise known as a register).

Do not rely on online banking, phone banking or whatever you "think" your balance is. Refer to your register.

When you make a debit or write a check, deduct that amount immediately from your register. Don't wait until you get home or to the car. Do it then and there.

When you make a deposit, only add $100 or whatever the amount the bank makes available right away. Do not spend any more than the available funds will allow.

When the deposit posts, you can then add the rest of the amount to your balance. Do not make any transactions that will depend on those funds until they are fully available. If you do so, you are choosing to pay the bank the O/D fees.