My teenage son went specifically to US Bank to cash his first paycheck from his employer because his employer banks with them. He was told there would be a $5 fee for cashing the check and was encouraged to open a new checking account so that he would not have the fee in the future. They were also offering a $75 grocery rebate for opening the account. My son has muscular dystrophy and this is his first part time job. This is also his first checking account, so was excited about it.
I was in banking for many years, so I specifically asked if the funds would be available right away. The gentleman told us that there would be no problem because the employer banks with US bank, so no need to put a hold on check. The check was for $170.. He withdrew $70 at the time he deposited the check, leaving $100 in the account. He later went to take out $45 and the teller gave him the $45 with no mention of any negative balance.
He found out later the same day that his account is $60 overdrawn and now has $8 a day in overdraft fees!
So, something is definitely wrong. His US Bank check from his employer was for $170. He withdrew $70 when opening his account. He left a balance of $100.. Withdrew $45 after two days of opening the account. And is now being told he has a negative balance of $60.. And to top it all off, he is being told it is his fault for withdrawing early even though the teller made no mention of any type of hold on check or that he would be in the negative.
Something seriously needs to be done. They are literally ripping off a teenager, with a disability, first job, and first checking account.
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