Knowing that things have been tight lately I decided to phone Wachovia to check my balance before purchasing a sandwich today. To my horror the automated system came back with an announcement that my checking account had been overdrawn by 981.12.
I was stunned! Yesterday evening I had checked my balance before making a car payment and there were over 500.00 available in the account. I then withdrew 410.00 to make my car payment. I knew I had to hold my breath for the next few days with only 90.00 left in the account.
This was the last transaction on my debit card that I had made. Before ending up at the deli. Needless to say. I put my card away and decided to skip lunch.
On the way home I got on the phone with Wachovia to find out how this had happened. The customer service specialist revealed to me that I had $735.00 in insufficient funds fees. I coughed, "Excuse me?", I said. She agreed that it was exorbitant and offered to connect me with a Support Analyst who could assist me with removing more than 15% of the fees.
The support Analyst did not help me. They both advised me that I had multiple transactions which came out of the account after it was overdrawn. I told them about checking my account balance the night before... The support Analyst advised me that these were valid charges and advised me that I had signed a contract agreeing to the terms of the NSF fees.
I knew I had screwed up. And was willing to pay a few 35.00 NSF fees as long as they were valid. But 735.00? I felt like I was being tricked in some way.
There was one thing that they did not make clear to me. That I didn't find out until doing my research tonight online. "Wachovia uses a "biggest check first" posting order, by which items posting to a customer's account post according to the amount of the item, as opposed to the transaction date. So the 21 items between 2$ and 15$ that I debited on the weekend and on MLK day were each charged an NSF fee eventhough there was a balance of over 500.00 in the account to cover them when these items were drafted. You see Wachovia put my 410.00 withdrawal in the front of the line to ensure that I was charged an NSF fee on as many items as possible.
Supposedly banks argue that this is done to prevent a customer's most important transactions (such as a rent or mortgage check, or utility payment) from being returned unpaid." I find this explanation ridiculous.
"This policy also has the effect of maximizing fee income since the larger items deplete the account balance causing multiple overdrafts by smaller items that present on the same day." -Wikipedia (This is the real reason). Consumers have attempted to litigate to prevent this practice, arguing that banks use "biggest check first" to manipulate the order of transactions to artificially trigger more overdraft fees to collect." [IBID]
Anyway. I feel better now knowing how I was tricked. Yes, they did present me a contract 10 years ago that likely included this little small print detail that is entirely nefarious. Yes. It is my fault for not balancing my checkbook. But I trusted in the name of Wachovia to be above such devious practices.
"These are valid charges, sir." Yes mam I guess they are. Well. It would not be the first time the law has supported such an execrable policy. I can think of a few. Can you? -Slavery, ius prim noctis (a legal right allowing the lord of an estate to deflower the estate's virgins). Am I going overboard by putting these in the same category?
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