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Can a bank draw both a OD fee and an NSF fee on the same item?

Lets say I had to call in a check for my light bill. I timed it just right, so that it would hit the same day as my direct deposit from my checking acct. Well, for some reason, they want to HOLD the direct deposit (that has been in place for over a year) for 12 hours and let the light bill go through. Ok... then they slam me with an NSF fee (since, you know, the deposit was still "pending" at the time) and an OD fee (because they put the light bill in first and it made it go temporarily into the neg, until the direct deposit went through).

Can they legally do this? The bank I am referring to has been in lots of trouble for screwing ppl over (Woodforest). Thanks!


Asked by Anonymous at 10:50 AM on Aug. 19, 2010 in Money & Work

This question is closed.
Answers (16)
  • Yup, they can & will. This is why I only bank with a credit union. Personal service not "how bad can we screw Joe & how much can we make" service.

    Answer by motherofhope98 at 6:04 PM on Aug. 19, 2010

  • Yeah, they can and do and will. I had that happen too. BUT, my payment hadn't even gone through yet when I got the charge. LOL

    Answer by BradenIsMySon at 10:52 AM on Aug. 19, 2010

  • Let's put it this way: banks will charge fees for 100% of what they think of.

    If they don't allow you to pay things at a specific time on a specific day, they're going to have to reverse the charge that wouldn't have happened if they'd done them in the other order the same day. When you have control (the date) the mess is your fault, and you get to pay for it. When they control it (the time) it's their problem and they can eat it.

    Answer by LindaClement at 10:52 AM on Aug. 19, 2010

  • I'm not sure they can, but, if they do call them. They will usually wave the fees if you haven't bounced your account. more than once a year. Even direct deposits can have a hold, that's why it's best to make sure the money is in your account first.


    Answer by Christine0813 at 10:54 AM on Aug. 19, 2010

  • They can and do. It's legal, and written in a document somewhere that you signed when you got your checking account. I'm not saying it's "right" - but it's legal. They are also allowed to "pend" deposits, even direct ones, for as long as they feel is necessary. It's their business.

    Answer by Scuba at 10:56 AM on Aug. 19, 2010

  • The bank receives notice that a deposit is going to be made this is called a soft post, until the funds are actually received you don't have access to them (that would be the 12 hours). If you take money out of your account before the money is released you are overdrawn and would be subject to the overdraft fee and the nsf fee.

    Answer by Mommy2Gabrielle at 10:57 AM on Aug. 19, 2010

  • The thing that people don't understand is that banks are a business. They are in it to make money! Checking accouts cost a lot of money for a bank to maintain, from paying employees to printing nd mailing your statements. Not to mention the millions of dollars to comply with ever changing federal banking regulations! So yes they can and do charge fees. Its one of the ways they make money that allows you to have a bank account. If you think you shouldn't be charged talk to the bank manager and ask for a refund. Sometimes they will do that for you. Make sure you understand how and when you will be charged a fee in the future. Take responsibility for your bank account knowledge.

    Answer by bjane01 at 2:27 PM on Aug. 19, 2010

  • Yes, they can. Most banks will reverse one charge a year

    Answer by rkoloms at 6:10 PM on Aug. 19, 2010

  • Im almost positive this was the reason Wells fargo just got in its not right...look it up on Yahoo about Wells fargo.

    Answer by SunShineMoMM at 10:51 AM on Aug. 19, 2010

  • I would say no, but since they are technically calling it two different things I suppose they can. I'm guessing it's a charge for over drawing your account and a charge for "bouncing" a check. I hate banks they do stuff like that and it's such crap! It's like my bank you get overdraft protection drawn automatically from your savings, but if you have a "check" which would mean their bill pay they stick you with an overdraft fee. I bet if you go into the bank and argue enough they will give you the money for the charges back

    Answer by MamaSarah1104 at 10:53 AM on Aug. 19, 2010