Overdraft charges

[Cebu_4_2]

My credit union is charging me for overdrafts. Either I am not reading it right or I am getting fleeced.

Example:

Account has $15.00
Paypal wants $15.05
Bank declines payment and charges an overdraft fee
5 days later Paypal wants $15.05
Bank declines payment and charges another overdraft fee

From their own site: (full policy below)

What fees will I be charged if XX Credit Union pays my overdraft?
Under standard overdraft practices:
We will charge you a fee of up to $32.00 each time we pay an overdraft.

Are these backwards ass country fvcks fleecing me?
Talking to the kids at the local branch is useless.
I will call the main branch if this sounds wrong.



Overdraft Tolerance Service Disclosure Agreement







What You Need to Know about Overdrafts and Overdraft Fees

XX Federal Credit Union

An overdraft occurs when you do not have enough money in your account to cover a transaction; however we pay the transaction on your behalf. We can cover your overdrafts in two different ways:

We have Member Privilege protection that may come with your account.
We also offer overdraft protection plans, including Overdraft from shares and Overdraft Protection Loan, which may be less expensive than our Member Privilege protection. To learn more, ask any XXX about these plans.

This notice explains our standard overdraft practices.

https://banking.y12fcu.org/images/ulimage.gif What are the standard overdraft practices that come with my account? We do authorize and pay overdrafts for the following types of transactions:

Checks and other transactions made using your checking/share account number
Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

ATM transactions
Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.


https://banking.y12fcu.org/images/ulimage.gif What fees will I be charged if XX Federal Credit Union pays my overdraft? Under our standard overdraft practices:

We will charge you a fee of up to $32 each time we pay an overdraft.
There is no limit on the total fees we can charge you for overdrafting your account.




https://banking.y12fcu.org/images/ulimage.gif What if I want XX Federal Credit Union to authorize and pay overdrafts on my ATM
and everyday debit card transactions? If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions, call 911, visit www.fu.org, or complete the form below and return to your local branch.

[ximmy]

Frack paypal. I got rid of them, no longer use. So for the most part ebay has lost pretty much all my business. Also, I am using CC cards for payments and then paying off the cards manually from my Credit union. This has stopped their well thought out and carefully planned overdraft charges.

[Cebu_4_2]

I don't care about the paypal reference, a few months back this same exact scenario happened with a bad check due to a fedex charge before a check was cashed. That one resulted in 3 overdraft charges and the bank did not pay on any of them.

The bank or cr union is telling me that anything without funds results in overdraft while the policy states overdraft occurs when they PAY the overdraft amount.

Just want to know if I have a leg to stand on when I call these MF's tomorrow.

[Shami-Amourae]

That happened to me before. I was like 30 cents over or something. It sucks.

The best word of advice is to always keep a buffer amount of money in your account.

[expat4ever]

That happened to me before. I was like 30 cents over or something. It sucks.

The best word of advice is to always keep a buffer amount of money in your account.

No, the best advice is to stop using banks. Pay cash.

[Glass]

I had an account with no over draft but when a cheque arrived for presentment without enough funds to cover it the bank gave me an overdraft and a $30 fee. Then because the account was over drawn due to the $30 fee, they charged me another over draft fee and another and another and another and inside of about 9 or 10 days I had $300 of over draft fees. I was being paid <$200 per week so I went hungry for a couple weeks, got penalised for late power and phone bills. It really started to get out of hand. This was RBS subsidiary here. Closed acc of course and never went back. I find credit unions and community banks are better to deal with.

[madfranks]

An overdraft occurs when you do not have enough money in your account to cover a transaction; however we pay the transaction on your behalf.

But if Paypal wanted the same $15.05 a few days later, then the credit union didn't really pay it on your behalf, did they? I'd say they can't charge you twice.

I overdrafted once and that's exactly what happened; the CU paid it, but then I had a negative balance in my account of the amount I was deficient, plus a $25 fee.

[Shami-Amourae]

No, the best advice is to stop using banks. Pay cash.

Goodluck with that.

Those of us in the real world know we need to use banks.

If a cop or government official finds a large sum of cash suddenly they can say you're a drug dealer and steal everything.

[goldleaf]

Its a money makin' deal for banks. At my old bank I would sometimes make a deposit on Friday evening. Now get this, my account wouldn't be credited with the deposit until 4pm on Monday but any checks that came in before that would be subtracted out and put me in the hole, accruing overdraft charges.When I finally changed banks they asked me why I was leaving. I told them about this situation and they said " Oh, we're not going to do that anymore". The new bank credits my account as soon as I deposit, so far so good.

[Cebu_4_2]

But if Paypal wanted the same $15.05 a few days later, then the credit union didn't really pay it on your behalf, did they? I'd say they can't charge you twice.

I overdrafted once and that's exactly what happened; the CU paid it, but then I had a negative balance in my account of the amount I was deficient, plus a $25 fee.

I looked into this on my sons account, he had the same thing happen but they did pay the difference. We are both with CR unions but different ones. I will call the main location and ask for a manager to explain how this overdraft thing works. If they are not willing to fix this I will mention about the consumer protection laws, the State Attorney General and even might mention that my wife is an Azian minority and is used to being discriminated against...

[madfranks]

Its a money makin' deal for banks. At my old bank I would sometimes make a deposit on Friday evening. Now get this, my account wouldn't be credited with the deposit until 4pm on Monday but any checks that came in before that would be subtracted out and put me in the hole, accruing overdraft charges.When I finally changed banks they asked me why I was leaving. I told them about this situation and they said " Oh, we're not going to do that anymore". The new bank credits my account as soon as I deposit, so far so good.

I'm a long time member at my credit union, when I deposit a check they treat it as a cash deposit and credit it immediately. If my account has $1 in it, and I deposit a check for $1000, I could ask for $1000 cash back at the end of the transaction and they'd do it. I keep a minimum balance in my account, and every time I deposit a check they ask if I'd like any cash back. I appreciate this, and don't abuse it by any means.

[Cebu_4_2]

They told me that the overdraft works differently because it is a business account. I asked to see the policy stating this, she told me I would have to go to my local branch to see this. Told her the only time I will be going to the local branch will be to close the account. She could care less. I will be shopping for a different cr union.

[govcheetos]

Goodluck with that.

Those of us in the real world know we need to use banks.

If a cop or government official finds a large sum of cash suddenly they can say you're a drug dealer and steal everything.

No offense intended, just be careful what you call the real world.

[brosil]

The short answer is yes and it's fairly common. That's one of the reasons I transferred to a local bank. If I do overdraw, they charge me $.41 per day until I correct it. At least, that's the most I've been charged so far.