Overdraft Fees

Bank of America just changed their over draft policy. No longer will they have an overdraft fee. In a news report Susan Faulkner, Senior Vice president of consumer banking for Charlotte North Carolina based bank said
"The majority of our customers who overdraw their account do so with everyday debit purchases. They're doing this unknowingly, because they aren't aware that they are about to overdraft." Associated Press.

The feeling was since the bank does not have the ability to let the customer know when they are at the store that that they are using more money then they have, nor give them the chance to agree to a fee, it will no longer allow those transactions at all if there is no money in the account to cover them.

I had a recent experience with overdraft fees at my local Wachovia Bank. Having banked with them for many years long before they were known as Wachovia when they were First Union and even before I had believed I could trust them. Whenever I had any questions they were there to give me the answers.

There was a time a check of mine bounced, upset I went to ask how that happened, as I was under the impression I had enough in my bank at time to cover it. They pointed out that in order for them to cover all debit or credit cards and checks it was important to have over draft protection. They suggested I open and put money in other accounts to back up the checking account. I opened both a savings and a money market as suggested by the bank professional.

Asked if I was now covered, I was told that as long as there is enough in the other accounts to cover the checks and credit/debit cards I was. When there was not enough in those accounts they would not allow me to use what I did not have in my accounts.

About a month ago I went to buy a used car from a used car dealer named Sienna Motors in Lighthouse point, Florida.

I picked out a Mazda 2002 that looked clean and in excellent condition. They told me it was in good running condition and that I would not have to worry about repairs for a long time.

I said I did not think I had enough money in my bank accounts to cover the cost of the car, but I was not sure.
"well lets run the cards you have through and if there is not enough we will know."
They said.

I had two different bank accounts at the time and they ran both bank cards through their merchant account. One of them was an Amtrust bank card which enabled me to use a little less then I had in my account at the time. Wachovia gave me over seventeen hundred more then I had in my account. Almost double the money in my account at the time was released to Sienna Motors for this sale from Wachovia Bank.

As it turned out the car was in very bad shape and my son who I was purchasing it for had unknowingly signed the 'As Is' warranty document. Though the salesman said it was a thirty day warranty they would not let us return it, or even answer our calls, at first. Then they pretended to have it fixed and had me leave it there on several occasions.

It was never repaired or even worked on and I was left with a car that was too dangerous to drive with several oil leaks, problems with the brakes and a dysfunctional air bag.

I had over draft fees, all the money in my other accounts were taken by the bank. I owed over eight hundred dollars plus fees to the Wachovia and now had a car that was useless.

Had the bank not given me seventeen hundred dollars more then I had in my account I would not have bought this car.

I learned you cannot believe everything you are told, be it from a used car dealer, or a bank employee, one needs to do there own research. I would never have over draft protection again nor go to a used car dealer to buy a car without researching them first.