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Bank Question

Ok, can someone please explain to me how a bank can charge an overdraft fee for something before it posts? Especially when deposits post before the deduction so the account never went negative. They say it is because it was pending but I transferred the money while it was pending and it posted the deposits first. The account never went negative. What am I not understanding here?


Asked by Anonymous at 12:46 PM on Oct. 28, 2010 in Money & Work

This question is closed.
Answers (8)
  • Did you call the bank? Sometimes that happens, but usually the bank catches it and it readjusts- or at least that what mine does. I am assuming you saw that pending on line? The bank has no way of knowing what the online says, so sometimes you have to call and let them know. Good luck.

    Answer by m-avi at 12:48 PM on Oct. 28, 2010

  • To me the banks have their own set of rules that i don't understand.

    Answer by arenad at 12:47 PM on Oct. 28, 2010

  • My bank has a policy that, as long as I deposit to cover the OD before the end of the business day, they waive the OD fee. Try calling them to see if someone will explain it. If not, go in person and explain. Given the recent banking law changes to be more consumer-friendly, especially regarding OD fees, they will likely re-adjust your account if they haven't done it by the time you talk to them.

    Answer by geminilove at 12:52 PM on Oct. 28, 2010

  • I did talk to them online and go into the bank. I was told that because the pending transaction was in pending for 2 days and I transferred the deposit in on the second day that that is why I got the fee. Because my account supposedly went negative because of a pending transaction. Yet my balance doesn't reflect this. Basically the breakdown is...

    Day 1: Deduction was put in pending (according to bank) and put my available balance in the negative (but not the ledger)
    Day 2: Deduction still in pending (this is why I first saw it) and there was an overdraft fee so available balance is way in the negative (but ledger is not) so I transfer money to cover it.
    Today: Everything is posted. Deposits posted first, then overdraft fee and then the deduction that caused the overdraft fee. Balance, aka ledger, never went negative.

    Comment by Anonymous (original poster) at 12:53 PM on Oct. 28, 2010

  • That's odd. My bank says that pending transactions mean nothing to them.

    Answer by m-avi at 12:58 PM on Oct. 28, 2010

  • That is what I was told when I opened the account years ago. I asked if this was new due to the new overdraft laws and was told no this is how it has always been. I told her no it isn't. I have had stuff in pending before make my account negative but no fees because those deductions can disappear. However, unfortunately, the branch that I opened my account at closed down and I have to go to a new one that was absorbed into my bank so it just sucks (since my bank bought out another company).

    Comment by Anonymous (original poster) at 1:02 PM on Oct. 28, 2010

  • Ask them to remove the fees. If you don't regularly incure those fees, they are very likely to refund them to you.

    Answer by Candi1024 at 3:15 PM on Oct. 28, 2010

  • Thanks everyone. After I emailed them they refunded it since we were never told about it but said now we know so be careful.

    Comment by Anonymous (original poster) at 4:10 PM on Oct. 28, 2010