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Report: #149089

Complaint Review: Credit Union One - Traverse City Michigan

  • Submitted:
  • Updated:
  • Reported By: Vandalia Michigan
  • Credit Union One 1202 Veterans Dr Traverse City, Michigan U.S.A.
  • Phone: 231-941-7330
  • Web:
  • Category: Banks

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I have a problem with Credit Union One regarding their "PAID ITEM FEE" fraud... I would call it a "PAID ITEM FEE" policy but I don't believe it could be policy as it has to be illegal... or a glitch in their system.

Here is the problem... Just this past Thursday night, 07/07/2005, I checked my balance before I left home to go to the auto parts store, walmart, and the gas station. When I checked the balance there was $105 and change in the account which was about right according to my register.


We are living on a rather tight budget at the moment and unfortunately go pay period - to - pay period which makes it all the more difficult to deal with this Credit Union.


I first stopped at the auto parts store and made two separate purchases, one for $2.84 and one for $65.47. I then went to walmart and bought some things which totalled $23.50. Lastly, I stopped and bought gas for $10.00.

When I got back home less than 2 hours later I checked the balance again and it now showed a balance of $0.87 which included three PAID ITEM FEES that are $28 each for purchases made yesterday and the day before but are just now posting to our account.

The next day 7/08/2005 I find that there are four more paid item fees... two for the two purchases at the auto parts store, one for the gas I bought, and one for checks my wife ordered which cost $12.15. I hadn't calculated the checks into the equation when I bought those things Thursday night so this of course caused me to go over my available balance.

This is where the problem begins for me. Ok, so I had $105 to work with and made purchases of $65.47, $23.50, $10.00, and $2.84 which comes to $101.81. Not figuring in the checks my wife ordered of course is where we screwed up and I surely don't have a problem with paying for that paid item fee. My problem is that after calling and speaking with the credit union csr's and managers I am told that their policy is that whenever we go over what is available in our account, EVERYTHING from that point forward is accessed this "PAID ITEM FEE"... not just the one item that overdrew the account, but even those items which have already held funds against our available balance and are waiting to hit the account are also accessed this fee!


The problem I have is that this is like charging twice for the same items. When I make a purchase and I have the funds available and the funds are held for that item, I expect that item to clear no matter what since the money has been set aside for this particular item and removed from my available balance.

The way Credit Union One has their system configured is just the opposite and is clearly a blatant attempt to maximize on the number of "PAID ITEM FEES" they are able to assess. The way it's set up now - even if you make 5 purchases over the weekend and the last purchase puts you over your available balance... you will be assessed 5 ($28/ea) "PAID ITEM FEES" instead of 1, even if you still have enough in your account to cover the other four items.


Here is how things went just a few days ago...

07/08/2005 DEPOSIT 225.00 2.75
07/08/2005 PAID ITEM FEE -28.00 -222.25
07/08/2005 # DEBIT PURCHASE -23.50 -194.25

07/08/2005 # PAID ITEM FEE -28.00 -170.75
07/08/2005 CHECKS ORDERED -12.15 -142.75
07/08/2005 # DEBIT PURCHASE -65.47 -130.60

07/08/2005 # PAID ITEM FEE -28.00 -65.13
07/08/2005 # DEBIT PURCHASE -10.00 -37.13

07/08/2005 # PAID ITEM FEE -28.00 -27.13
07/07/2005 # DEBIT PURCHASE -21.45 0.87

07/07/2005 # PAID ITEM FEE -28.00 22.32
07/07/2005 # DEBIT PURCHASE -2.84 50.32

07/07/2005 # PAID ITEM FEE -28.00 53.16
07/07/2005 # DEBIT PURCHASE -23.00 81.16

*07/07/2005 # PAID ITEM FEE -28.00 104.16*
07/07/2005 # Share OVERDRAFT FEE -5.00 132.16
07/07/2005 # TRANSFER 0.78 137.16
07/07/2005 # DEBIT PURCHASE -21.67 136.38

07/07/2005 # DEBIT PURCHASE -19.06 158.05

07/06/2005 # DEBIT PURCHASE -14.41 177.11

07/06/2005 # DEBIT PURCHASE -12.00 191.52

07/06/2005 # DEBIT PURCHASE -4.34 203.52

07/06/2005 # DEBIT PURCHASE -5.90 207.86

07/05/2005 # DEBIT PURCHASE -9.51 213.76

07/05/2005 # DEBIT PURCHASE -25.05 223.27

07/05/2005 # DEBIT PURCHASE -12.12 248.32

07/05/2005 # DEBIT PURCHASE -93.83 260.44
07/05/2005 # DEBIT PURCHASE -10.33 354.27

07/05/2005 # DEBIT PURCHASE -30.00 364.60

07/05/2005 # DEBIT PURCHASE -153.46 394.60


...after speaking with the first two CSRs, they were unable to explain to me why I had been charged these "PAID ITEM FEES" - they were both stumped and sure it must be some kind of bank error.

After speaking with a manager I was again told it must be a computer error of some type as she couldn't understand why I would be charged "PAID ITEM FEES" on things that were purchased yesterday and the day before when my account wasn't negative when these purchases were made NOR when they physically came through my account! It wasn't until I spoke with the head manager was I told (and the employees alerted to the fact) that this was how their system is NOW setup?

I'm sorry but this just isn't fair nor could it possibly be legal!

If you look at the first "PAID ITEM FEE" assessed on 7/7/2005 you'll see there was $104.16 showing in my account at time I went to the store. After the last charge that overdrew the account (when including the $12.15) for the ordered checks everything that same night didn't pay even though these amounts had already been held against the account balance. For them to not pay these items is where I have a problem.

I am currently waiting to hear back from the bank as to what can / will be done if anything.

Your help and input would be greatly appreciated. Is there anything I can do to get them to remove these charges from my account?

Thank you.

Raymond Brooks

Raymond
Vandalia, Michigan
U.S.A.

This report was posted on Ripoff Report on 07/09/2005 09:49 AM and is a permanent record located here: https://www.ripoffreport.com/reports/credit-union-one/traverse-city-michigan-49684/credit-union-one-assessed-paid-item-fees-when-items-have-already-held-funds-against-my-ava-149089. 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:
0Author
6Consumer
0Employee/Owner

#6 Consumer Suggestion

ACH Fees you cannot just check a balance and assume

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

POSTED: Tuesday, July 19, 2005
As you have probably learned by now, you cannot just check a balance and assume that you have that much available. YOU MUST BALANCE AND KEEP TRACK OF YOUR MONEY!

For instance, when you buy gas at the pump with a debit card, in most instances the gas station only passes a purchase amount of one dollar, mostly just to insure that the card is real. Two or three days later, the actual amount is posted to your account. If you had checked your balance in the interim, it would have been mis-stated by most of the amount of the gas purchase.

It has always been your obligation to keep an accurate running balance, but it has never been more important than it is now with electronic transactions, and Check21. (Checks you write are going to start clearing within hours, not days)

The harsh reality here is that you were spending without any knowledge of how much money you had available in your account. You can't blame the credit union for that.
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#5 Author of original report

yes, i paid at the pump...

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

POSTED: Monday, July 11, 2005
thanx for your reply...

yes, i paid at the pump as i usually do. i was always under the impression that if you paid at the pump the gas station only holds $1 or so?

if i am wrong then yes this could be the reason for the overage, HOWEVER, my problem is with the way they assess the "PAID ITEM FEES"

even if i did go over for that one transaction or even the last two transactions, HOW can they justify NOT paying items that had already held against my available balance.

again, this is like charging twice for the same items because these first items they didn't pay had already deducted from what i had available in my account and therefore should go through when presented for payment?

can anyone speak to this point?
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#4 Consumer Comment

Was the gas purchase credit or debit at the pump?

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

POSTED: Sunday, July 10, 2005
I am not trying to defend the bank. They are in business to make money, but some of their policies are more convenient for them than their customers.

One thing that may have been your undoing is the gasoline purchase. You didn't say if you paid at the pump or at the register so this is only a thought. If you paid at the pump, some gas companies policy is to enter a request to hold up to $50.00 from your account. And they can have that hold in place up to three business days until the actual charge is verified from the gasoline company. One reason why paying at the pump, although convenient, is not a good idea with a debit card.

Sometimes if you have been a long time customer they may refund some of the charges as a "curtosy", but you have to ask and it's only a one time thing.
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#3 Consumer Comment

Was the gas purchase credit or debit at the pump?

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

POSTED: Sunday, July 10, 2005
I am not trying to defend the bank. They are in business to make money, but some of their policies are more convenient for them than their customers.

One thing that may have been your undoing is the gasoline purchase. You didn't say if you paid at the pump or at the register so this is only a thought. If you paid at the pump, some gas companies policy is to enter a request to hold up to $50.00 from your account. And they can have that hold in place up to three business days until the actual charge is verified from the gasoline company. One reason why paying at the pump, although convenient, is not a good idea with a debit card.

Sometimes if you have been a long time customer they may refund some of the charges as a "curtosy", but you have to ask and it's only a one time thing.
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#2 Consumer Comment

Was the gas purchase credit or debit at the pump?

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

POSTED: Sunday, July 10, 2005
I am not trying to defend the bank. They are in business to make money, but some of their policies are more convenient for them than their customers.

One thing that may have been your undoing is the gasoline purchase. You didn't say if you paid at the pump or at the register so this is only a thought. If you paid at the pump, some gas companies policy is to enter a request to hold up to $50.00 from your account. And they can have that hold in place up to three business days until the actual charge is verified from the gasoline company. One reason why paying at the pump, although convenient, is not a good idea with a debit card.

Sometimes if you have been a long time customer they may refund some of the charges as a "curtosy", but you have to ask and it's only a one time thing.
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#1 Consumer Comment

Was the gas purchase credit or debit at the pump?

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

POSTED: Sunday, July 10, 2005
I am not trying to defend the bank. They are in business to make money, but some of their policies are more convenient for them than their customers.

One thing that may have been your undoing is the gasoline purchase. You didn't say if you paid at the pump or at the register so this is only a thought. If you paid at the pump, some gas companies policy is to enter a request to hold up to $50.00 from your account. And they can have that hold in place up to three business days until the actual charge is verified from the gasoline company. One reason why paying at the pump, although convenient, is not a good idea with a debit card.

Sometimes if you have been a long time customer they may refund some of the charges as a "curtosy", but you have to ask and it's only a one time thing.
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