I have had problems with their overdraft fees in the past. I am not perfect, and with two people in the house with cards, things happen, so occasional overdraft fees I feel are pretty normal. However, after a specific issue in early 2009 where they sent something big through first and bounced a bunch of smaller items, I specifically asked how their process works.
They explained to me that all activity done before 4pm affects the account that given day. Deposits go through the account first, then the largest debit transaction down to the smallest. This caused an issue with me once, but as they explained it, they send the largest through first as that seems to be the bill that is the most important. That makes sense to me and I noted it for the future. Anything after 4pm does not take effect until the next business day.
On May 12 my wife informed me she had made 2 purchases which, after I checked, would put us about -$30 in our account. I called SunTrust at 4:23pm to see if the items would go through that day or the next. The representative said the items had not gone through yet and would most likely occur later in the week. I clearly asked if I would be able to make a deposit first thing in the morning and was told that would be fine. Going by their rules above, since it was after 4pm and they had not been debited yet, they would not be until the next day if they came in. I double-checked my balance online before I went to bed. Both transactions were listed as pending, again leading me to believe they were not going through until the 13th. One transaction for $177 still had not shown up as either pending or going through.
At 7:45 am I made a deposit of $40 to cover the expected shortage. An hour later I got an email stating all 3 items had gone through on the 12th and I was charged $108 in overage fees, putting me at -$137 in my account. The largest bill had gone through first, putting me at -$1 and change, and the other 2 put me down to -29 and change before the 3 fees were taken out.
According to their rules, the debits should not have been taken out on the 12th, as they had not gone through before their 4pm deadline, and since my deposit was made the next morning, all should have gone through the same day. Again, according to their own rules explaining how transactions go through, the deposit is supposed to go through first, which would have avoided any charges at all.
When I asked about this the next day and requested removal of the fees, I was told this is not a bank error. Unfortunately I have to agree it is not an error. It is a clear attempt to defraud customers by manipulating your own transaction rules to force overdraft fees.
In addition, I cannot get this company to provide me with a copy of the paperwork signed to start the account. In early 2009, after we had an overdraft charge, they blocked the account from making any more charges. Again, not something abnormal, but they refused to release the account unless someone took time off work to come into the office, despite the account having a positive balance when our direct deposits were put in. After 2 hours on the phone and finally losing my temper with 2 reps and a supervisor, they allowed us to clear it over the phone.
However, that leaves me curious as to how the government cannot block access to our accounts without a warrant, but the bank itself can do so when the account has a positive balance. To this date, despite numerous attempts, they have still not provided me with any paperwork signed by me that shows where they have the legal right to do this.
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