From Badisse (google it)
Read and educate yourself on how clever Wachovia and other Banks are in causing you more overdraft fees. And how they are breaking the law.
When I use to get so many overdraft fees even when I would watch my account closely, I knew something was not right.
I finally found out that Wachovia bank and other banks had incorporated a "re-sequencing" scam of posted charges combined with a dalay in charge postings and a delay in account balance postings to increase overdraft fees.
The re-sequencing scam works like this. Say you have a $100 bank balance and charges come in order as Day#1 $5, $10, $10 and Day#2 $30, $65 (overdraft fee $65 = $35). If Wachovia paid them in this order, there would be one overdraft fee. However, Wachovia would re-sequence them by high to low and pay them in that order regardless what day or time they were charged. $65, $30, $10, $10 $5 (overdraft fees on $10, $10 and $5 = $105). Wahovia would intentionally not disclose a person's accurate account balance so you think you have more money in your account then you do, which would help the bank cause you to go into overdraft. Wachovia would then intentionally delay posting your charges to batch all the charges together on one day to increase the overdrafts. For example, taking the above example, if Wachovia paid the charges in order by DATE (Day#1 then Day#2) even if it re-sequenced them from high to low, you would only pay one single overdraft fee of $35. But by batching them together on a single day, the overdraft fee would be $105.
Overdraft fee $35:
Charges Day#1: $10 $10 $5 = $25 (account balance = $75)
Charges Day#2: $65 $35 = -25 (You only pay one overdraft fee on the $35 overdraft)
OVERDRAFT FEE (by delayed charge postings) $105:
Charges Day#2: $65 $35 $10 $10 $5 = $125 charges (3 overdraft fees = $105)
*Note: When Wachovia and other banks failed to pay your charges on day one and then on day two charged you a $35 overdraft fee for day one charges, they committed CONVERSION of your money because on day one there was money to pay the charges; but for Wachovia's intentionally delayed the postings to increase the overdraft fees.*
Very clever scam.
The average novice individual wouldn't understand how the bank was scamming them and the bank would say "it's your fault for not watching your balance". The consumer would feel guilty and agree. However, even if a person watched their balance, they would expect one overdraft fee. But the scam worked by creating multiple overdrafts on one overdraft error. Consumers didn't understand this and it was easy to throw them off and cheat them out of multiple overdraft fees on a single overdraft error.
Wachovia and other banks engaged in bad faith banking practices that are illegal. A federal judge in White v. Wachovia refused to dismiss the complaint against Wachovia on this bad faith banking practice. Wachovia settled the claim.
You can read a letter from the U.S. Congress demanding the Banks stop this practice. Also, read an FDIC report released in November uncovering this scam: Badisse.com
0 comments