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Zapped with Four NSF Fees as we Leave CU
Recently, we decided to leave our credit union and move to a well known bank. We were looking for better technology and access to more bank branches. As we brought our balance closer to zero, we miscalculated and had one too many debit transactions and overdrew our account by less than $10. However, the bank processed the last four debit transactions simultaneously (even though they were from different days) and charged a NSF fee for each transaction. Even though we had enough funds to cover three of the four transactions, they still charged us four NSF fees. We contacted them numerous times, explained that we were responsible for one fee (and paid that one), and visited the branch on several occasions, but they would only remove one fee "as a courtesy". We refuse to pay the last two fees on principal. Does this seem right? We have thought about filing a complaint with the BBB, is this a good idea? Will they respond to this?
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 In many cases the financial institution, whether it is a bank or credit union, has a sequence in which it pays items presented to it against your account. The fact that you wrote checks or used your debit card on different days is not necessarily relevant. They will generally be processed the business day they are received. Once they are put into a batch, the institution will make deposits first, then process items in the defined order. This might be internal items such as teller payments first, then ATM transfers, then checks received. The checks may be in date order, first in - first out, or commonly larger items first. Some pay larger items first believing you don't want your house payment to bounce. Some process smaller items first to reduce the impact of error such as you describe. Unless your state regulates this, the institution can do as it pleases and they may or may not have to disclose this to you.
It sounds like your CU paid the larger item first. The new bank you are going to may also follow this practice. You need to ask if this is a big deal and may happen again.
Published on BankingQuestions.com 9/01/10
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