I think the way my bank is charging fees is Illegal, any help?

Question

ok, I have banked with several banks in my life but none have ever done what my current bank is doing. I recently had an overdraft and I know it was my fault but the bank starts chaging fees before my account is actually negitive. They say if my availiable balence goes negitive they charge fees. Let me show you what I mean with my current situation
A purchase of 30.01 brought my balence to 110.78
and then one for 60.00 took my accout, per thier statement, to 50.78 but they charged me a SERVICE CHARGE for 25.00 for that transaction which then took my balence to 25.78
Then I had a purchase for 50.00 that one finally took me negitive -24.22 but would not have if I had not been charged the fee so they charged another fee for that one of 25.00 then I was neg -50.22 I think it shoud have been positive .22
does this seem right to charge fees before you account is actually negitive just because the availiable balance is neg from things that are pending?

Answer 1

Well, chances are, whether it's right or not, it is perfectly legal. Banks and Lawyers are just about the oldest business partners out there.....

On the other hand, just what sort of bank is this, that they have to have such an obviously egregious fee structure in order to make a profit? After all, it's YOUR money, you have simply entrusted them with it, and as far as I can tell they are abusing your trust. Just because it's not illegal, doesn't mean that they should be treating their patrons like saps.

The good news is, they are far from a monopoly, so you as a consumer do not have to tolerate such bad behavior one bit. If you don't like what they are doing with your money, take it back. Put in in a credit union,(where you can actually vote for the board of directors,) or else someplace where they will take better care of it. If consumers as a whole refused to tolerate such pointless and extortionate fees, banks would stop charging them.

Now, I am not against fees, per se. If the point is simply to provide a reasonable incentive for consumer to take care of their accounts. But it is simple common sense, that charging fees *as a source of revenue*, is just not a good way to do business.

OK, I am done ranting for now
~Donkey Hotei

Answer 2

It sounds very slimy for a bank to do that to a customer. You could check with the attorney general in your state to find out if that is legal. At the very least, report them to the BBB, then find a new bank.

I used to have an account at a bank that would make sure they cleared checks from largest to smallest. I had forgotten to record an ATM withdrawal, and there were four small $10-$20 checks ready to clear, and one for a couple of hundred. After they cleared the big one, there was not enough left to clear any of the others, so I got hit with the $25 fee four times instead of once. After talking to the bank and getting nowhere, I had a new bank the next week.

Answer 3

my bank has done that too, plus they charge 5.00 a day for each day that it is overdrawn. it should be illegal but I guess it isn't because they do it all the time.