NSF Checks

[deadbroke99]

I am so mad right now. I don't understand how it's fair for banks to put thru checks/debits from largest to smallest. I had forgotten to write down a $45.00 check from a tupperware party that I went to ages ago and they just now cashed the check. I had $25.12 in the bank and two checks outstanding for $5.48 and $6.14. My direct deposit goes in at midnight tonight. Well when I checked my online banking earlier , I saw that the two small checks went thru which left me a balance of 13.50. They put the $45 check thru first and then the other two which gave me three $30 NSF fees! I know it was my mistake not transferring it over on my new register but jeez!

[JoeBankrupt33]

I completely understand where you are coming from. This happened to me (at least once). Wells Fargo said "well, we cash the bigger ones first because they are probably more important." Yeah right, we all know why they do it. When it happened to me, I accidentally entered a small depost twice into my checkbook, and when I went overdraft, I had 10 charges bounce over a few days that were as low as a couple of dollars. The other problem is that I was only notified by mail, so I didn't even know I went over until 3 days later.

But...I called the bank, and they reversed 6 of the charges. It's always worth a try to ask for a little forgiveness.

[AngelinaCatHub]

db, it isn't normally a human decision. In a proof department, the checks are entered randomly and sorted to the clearing houses as they come. If a deposit is like from a business, the deposit slip is always done first, then the checks from their deposit that may be many different banks. As this is now by computer, no person determines the checks priority. There is no one to blame. Stuff happens. Call and see if you can get them reversed as far as the fee. The check holder may still charge you locally determined by the States laws. You are stuck with that one.

It is too easy to assume everyone is out to get you, but this is not so in this case. I know, I worked on proof machines when they were mechanical up to batch sending to Fed. I know what 'cash letters' are and all that stuff. Things do change and I will bet no human made the decission to nail you.

I solved my check problems. Had DW hitting too many by old habits. I now refuse to order checks when we run out. More prudent to spend $0.45 on a money order than $30 bucks on an NSF then $25 to pick up the NSF from the holder. Only my opinion. 'Hub

[deadbroke99]

I have overdraft protection so it paid the checks but charged me $90 to do so

[AngelinaCatHub]

I have overdraft protection so it paid the checks but charged me $90 to do so

I see. I have OD protection too that is actually a loan to $2500. I went beyond then they have a courtesy $500 but I got hit with the charges. I was please enough that the check did not go back to the holder that I [not quite] cheerfully paid the amount. They actually save you, embarrasment, and additional charges. 'Hub

[deadbroke99]

Yes but they do it in a way that they gain the most profit and I realize that's just business but it's unfair to the consumer. I have a friend who used to work at a bank and she told me today that the banks put them in from largest to smallest (the computer does it) so they can get the most NSF fees. She said her boss told them to tell people that the big checks are usually the mortgage and car payments and those are more important...sheesh!

[Flamingo]

Yes but they do it in a way that they gain the most profit and I realize that's just business but it's unfair to the consumer. I have a friend who used to work at a bank and she told me today that the banks put them in from largest to smallest (the computer does it) so they can get the most NSF fees. She said her boss told them to tell people that the big checks are usually the mortgage and car payments and those are more important...sheesh!

While we all know that practices such as this do happen and exist, what everyone needs to know is that you sign for them to allow all that to happen when you either open your checking account or line of credit to prevent checks from bouncing. If you read all the fine print, you allowed all the bad stuff to happen. Financial problems can devistate a checking account and having a $10.00 buffer in there because there just is no cash to pay the bills can be a disaster for a mistake such as the OP made. The only way around it is to keep pristine records which sometimes is just impossible to do with daily busy schedules or lost ATM receipts. I used to always everyday check our account online and keep the checking account balanced to avoid overdrafts because our line of credit was taken away (zero balance) when we filed as we had a VISA and Mastercard at the bank that had our checking account.

While it is tough, one needs to keep a tight watch over what goes in or out or just use cash and pay by money order.

[southernbelle]

I agree with Flamingo and Chase Bank taught me this hard lesson. I got relaxed with recording debits and ATM withdrawals and it caught up with me. Before I filed BK and money was really tight, the bank was racking up between $30 - $100 a month on me from overdraft fees alone. Once I didn't have a choice and purposely overdrafted on a check for a bill because I didn't want to get a cash advance and it was cheaper in overdraft fees. I quickly learned (after I filed BK) to stay on top of my money and where it goes and I hadn't had an overdraft since I decided to record everything. I totally understand how it could happen because it happened to me all too often. BK has also taught me how to live on a cash basis which is an eyeopening experience.

[AngelinaCatHub]

As I posted above, my solution was to run out of checks and not re-order. I now go cash, or transfer online, or money orders. I scan the original bill with the money order as my records to reduce paper files. It works for me. One $30 NSF fund will get you 67 money orders at 45 cents each. NOW is the time to practice a different way of life. A money order is a paid for item and will not bounce, and basicaly is a cash only life style. It works well for us. 'Hub

[krielly]

I used to be really really bad about balancing my checkbook each month. Up until a couple years ago, when I had a whopper of a mistake that cost me to bounce a few checks.

It wasn't even my mistake, but the bank had put a deposit I made into the wrong account. An almost $500 deposit at that!!!!!!!

Not anymore! I balance my checkbook every month for the most part (once in a while it's every two). I also used to add/subtract in my head in my register. Not anymore.......everything gets done by calculator.

Also, everytime I used my debit card, I pull out my checkbook right at that very moment, and write the charge in my register.

I also check my account on-line at least once a week.

K

[woeisme]

I always try to keep a $100 buffer in my checking account, just in case I make mistakes. I have online access to my account now too, and usually doublecheck once a week or so against my written register to make sure I didn't forget anything, like an ATM withdraw. I work way too many hours a week to be going to the bank to get cash, then going to Walmart to get a money order every time I wanted to pay a bill like AngelinaCatHub does, that would just be way too inconvenient, but understand the rationale behind it. But if I did that I think I'd always be getting hit with late fees because I wouldn't be able to fit it into my schedule and would be paying bills late.