I want to start by saying I have been using a debit card for 19 years and am ware of how to use a debit card (bank of america). I have never incurred an overdraft fee with bank of america in those 19 years.
I recently opened a Washington Mutual Account in order to take advantage of a $75 promo AMEX certificate. I used my account for debit purchases only, checking my account at the beginning of each day and after each purchase as to make sure I did not spend more than I had. I did not use my "checkbook"register as I did not write checks.
After each purchase my account seemed to have been reduced by the amount of the purchase. My last purchase I made brought my account to just a few cents, which is where I wanted it since I wasn't really goint to use the account anymore.
Well, three days later, I get a notice that my account is overdrawn by $230. I contacted WAMU (Washington Mutual) and asked what happened? How is it that when I used my card last at Subway for $20.30, I still had $20.67 left in my account and haven't used my card since.
WAMU advised me that since that purchase several other creditors submitted an authorization code for payment and since WAMU gave me (unwilling) a $200 overdraft credit they paid them.
I advised WAMU that they would have been responsible to pay them anyway since they were the ones who gave the authorization code. I asked them why they gave an authorization code or why they allowed these purchases to go through even though there was no money in the account to pay the merchant?
They once again said it was because of the $200 credit limit they automatically gave me. WAMU tells me that the creditor has 3 days to submit an authorization code or it drops off and that while WAMU is waiting the 3 days they do not reduce my balance? Who would this benefit? This does not benefit the consumer. Why would WAMU let me spend more money than I have, or better yet, after a purchase is made with a debit visa/mc, the bank should automatically reduce the amount in your checking account. They should have the responsiblity to do this. Bank of America works this way, this is why I have never had a problem in 19 years. WAMU is trying to tell me that this is the norm. They refuse to reverse the charges and tell me if I don't pay I will go to collections. Of the five charges that came through three were from starbucks for $3, costing me $38 for each cup of coffee. $38x3=$104!
Now do you see why WAMU had no problem allowing the $3 charge to happen, even though I apparently had no funds. I say apparently, because I was calling the 800# each time to check my balance. This is what they call a "convienience charge". What ever happened to "DECLINED". I had cash in my pocket and lot's of cash in my Bank of America account. I jsut wanted to clean out my WAMU account and bring it as close to zero as possible. So, I am warning you, if you are going to take advange of a promotion, such as $75 gift check, fine, just take out the cash, don't use any checks or debit cards, it may cost you more than you want.
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