Am I alone in thinking that if I were to issue someone a check for an amount above and beyond the funds in my account that the check should be returned to the payee as Non Sufficient Funds (NSF)??? Chase Bank doesn't seem to think so... in fact, they believe that their consumers WANT THEM to pay checks on my behalf, even when the funds are not present in their accounts.
Why?
Because it allows Chase Bank to drive up fees thereby increasing their fee revenue by ENORMOUS gains. The problem with this is that YOU or I the 'consumers, ' have little to no control understanding when Chase Bank ARBITRARILY decides it wants to increase it's fee revenue.
Take this example: A checking account has a $150.00 balance... A person can then use a debit card at various outlets, usually for smaller 'cash type' purchases. So in this example we'll say there are 4 pending debit card purchases totalling $50 ($5, $10, $15, $20), so the checking account now only has $100 of available money... Here's where it gets a little confusing, don't question the why just yet, just understand the problem. There is an outstanding check that will be presented overnight on the account for $145.00, thereby creating a negative amount of - ($45.00).
Chase Bank chooses (based upon consumer demand supposedly) to pay the items as follows:
1) The check for $145.00
2) The debit card purchase for $20
3) The debit card purchase for $15
4) The debit card purchase for $10
5) The debit card purchase for $5
This creates a negative balance in the account of - ($45.00), as we already established above... The problem with this, in this case the checking account owner will accrue $105.00 (3 x $35) in NSF fees at the end of the day... So, to cover the - ($45.00) the $105.00 in fees and get back to $0.00, the account owner needs to add $150.00 to their account.
Were Chase Bank to either:
1) Pay lowest to highest or 1st presented to last presented
2) Refuse payment (i.E. Returned Item) of the largest debit, in this case a check for $145.00
The checking account owner would only accrue a $35 fee for either an NSF Item or a Returned Item... However, I think you'll see the issue here. $105.00 in fee revenue is 3 times that of $35.00!!!
As I said before, the whole problem is this ARBITRARY assignment of debits to the checking account... Please don't try to understand the mechanics of why the overdraft occurred, it is fully UNDERSTOOD the checking account owner IS RESPONSIBLE for maintaining a positive balance. However, it is this ARBITRARY assignment as presented to me by one of their bankers: "Chase Bank's right to DECIDE ON IT'S OWN whether to PAY or DECLINE a checking account debit that is presented."
Go back to #2 above for Refuse Payment or Return the Item... Why didn't Chase Bank do this? It would appear because Chase Bank has the upper hand to decide whether or not it can make INCREASED REVENUE from the account holder. This is unfair and deceptive to the consumer as they have no way of knowing whether they are on Chase Bank's "Pay or No Pay" list. To further aggravate this problem think in terms of the EXTORTED INTEREST Chase Bank earns by spotting (at their discretion, i.E. Who will pay and who won't) an overdrafted account for a SINGLE DAY!
In the above example Chase Bank earned $105.00 for what basically amounts to a LOAN (again at their discretion) of $45.00... HOLY predatory lender! I mean geez, I bet the Payday Advance fellas aren't this harsh!!!
FWIW - In my case, similar to the one played out above, the $ for the debits was hundreds of dollars greater... It was a long weekend, I used my debit card, I payed some bills. I knew I needed to make a deposit because my account didn't have enough to cover the incoming debits. I transferred from another Chase Bank account in what I thought was the nick of time, in fact I received a confirmation number with a date one day prior to the confirmation date of the deposit.
I called Chase Bank immediately and told them I think I missed the cutoff. I asked if the available balance would cover an $850.00 check that might be presented that evening in addition to about 8-9 debits for ACH and Debit Card purchases... The representive told me I had a balance greater than was needed and I could remove all of the funds if I wanted.
Here's why I'm here today:
Chase Bank paid the $850.00 check, they then paid debit card purchases and returned two ACH items... At the end of all this, my checking account had a positive balance of $106.86 which was sufficient enough to cover the returned ACH items totalling $72.68. Along the way, my prior day balance was used which at the time was sufficient to COVER all debit card purchases both ACH items. However, the $850.00 check started the process which wiped out the prior day balance... The $870.00 INTERNAL TRANSFER made THE NIGHT PRIOR meant nothing to the accounting of these debits... The account goes negative from the check, continues going negative and then today the pending credit wipes it all away for a positive balance.
My account balance prior to the $850.00 check being presented would have been about $20 some odd dollars... Isn't it SUSPICIOUS that Chase Bank would overdraw my account by $820.00 some odd dollars and then throw a couple hundred dollars worth of debit card purchases ontop??? I mean geez, that's a lot of money they put up! Had they returned the $850.00 check and paid the other debits, fine, my mistake I'll pay the $35 fee, but instead today I'm looking at over $200 in fees!
Why?
Because there was an $870.00 transfer sitting there... They knew they could screw me.
To anyone reading this, I suggest you consider this situation if you are dealing or plan to deal with Chase Bank... While I think like most do, it is the RESPONSIBILITY of the account owner to MAINTAIN a POSITIVE BALANCE. This kind of ARBITRARY and SECRETIVE accounting terms has got to VIOLATE some type of CONSUMER BANKING LAW. If it doesn't, hopefully this kicks off some kind of suit against Chase Bank to make PREDATORY FEE ASSIGNMENTS a thing of the past for all consumers.
Angy at chase
Plainfield, Illinois
U.S.A.
0 comments