Another Banking Response

This Blog Was written in Response to:

http://i-hate-bbvacompassbank.blogspot.com/2010/08/customer-dissatisfaction-with-bbva.html

You really have everything to complain about. That Friday, like smart people do, did you check your bank account to see if your pay check was credited to your account? Or did you do what irresponsible people do, and just assume that your money was there and go spending? Thats rather stupid to rant about, speaking that any sensible person spends money that they saw they had first.

Banks, not just compass, distribute their checks to the customer when their payroll company(thats your employer) allows the funds to be distributed. If your funds are pending, don't start spending right away, that would be childish, especially if you knew how to manage money, and knew your bank's processing order.

For a simple answer: Pending does not mean available.

Trust me, there is no sneaky floating game. The government creates regulations, such as D, E, and CC to protect you and the bank from each other. You want to talk about floating games?

Check out this fact: customers, as well as the general public are angry that they can no longer postdate, also known as "float" checks anymore.

You can't write a check for $60 on tuesday, tell the merchant to cash the check friday because "thats when the funds will be there" and walk away with merchandise because your wrote a postdated check that will be "good" later. You can't do that anymore. Its against the law.

Its the same complaint, Customer Chris above has with his credit and debit transactions.
$1 is the approval fee that gas stations charge when you swipe at the pump. most online merchants do the same. You know why they do this? because they trust you have enough funds in your account after a $1 authorization fee.

Now, you can't tell me that when you swipe your card, the bank knows exactly how much gas you're going to put in. If you want something taken out of your account immediately, then use debit and punch in your pin number. If you're one to use credit, you better get a check register. "oh but i dont like keeping up with my transactions." "oh i know how much i spend, its the bank screwing me over" It sounds like you put too much faith in your "expert financial banking skills" that you manage your money so well, right?

Here's the "secret": Credit isnt immediately taken out of your account. Debit "POS" transactions are. Remember that next time you don't want to take the time to put in your pin.

Now I did something I don't normally do, and that actually walk in to one of the branches to ask for information on the bank, as well as call their customer service department to get answers to a few other questions.

Now the information I collected was such:

Your OD and NSF fees are $38
Your bank processes EDP
Your bank performs a blanket hold on all checks.
Your bank has cutoff times.
Your deposits of cash made before the cutoff time credit to your account same day, your deposits of cash made the day after credit next business day and will be treated as a next business day deposit.
Your bank is/isn't the problem.


Now back to Chris' complaint: You swiped at the pump because you "wanted to fill up" im assuming? That, first of all is poor spending, especially because like you said, you knew you only had $5 in the account. That is the mistake on your part, you willingly knew you would overdraft your account. Now, you said you were going to make a deposit. Was that deposit made, say after you left work that day? Most cutoff times from your branches, are about 4pm from the information I collected. So assuming you work a 9-5pm job, you probably made the deposit before 6pm, right? Either in the ATM, drive up teller, or night deposit box? Yeah thats gonna credit next day.

so according to EDP, this is your processing order:

wait, dont know EDP? (Ahem, your Compass bank's processing order? Well, then let me educate its customer's)

Processes based on 2 "days": (P)rior or (C)urrent.

They process Prior Day Credits to the account (not credits from your card)before Prior day debits to the account.

Then they process Current day Credits to the account, before Current day debits to the account

With that said, they process highest amount to lowest amount.

Im assuming its because you'd rather have 3 petty $1 redbox dvd transactions bounce than 1 $1000 mortgage bounce. Lets think house payment before entertainment.


Say today is Tuesday(The Current Day), Friday, Saturday, Sunday, Monday(The prior day) all count as one day of business Day (Did you know that? Nobody sits around and works at the bank Saturday and Sunday).


So on Friday, you have this: Direct Deposit of $7000, deposit in Cash of $5000, debit transactions of $40, $60, $1000, $8000.

Saturday you make another Deposit of $4000 by check, as well as a $2000 deposit of cash, a $5000 dollar mortgage payment, and a $100 day of shopping.

Sunday you take the family out to eat for $200, you were in the money as they say.

Monday rolls around and you buy gas a the pump for $90 as credit. Then you take your boss out to eat  for $60.

Tuesday rolls around and you make a deposit for $200 cash, and buy your son some toys for $50.



Now, Today is Tuesday, they (C)urrent Day.
Any Transactions that weren't made on the (C)urrent Day are considered (P)rior Day.

Wait, so Prior day is Friday, Saturday, Sunday, Monday? Yes, you'll see why.

So speaking from EDP, your transactions will post as such:

(P)rior Day Credits:
$7000
$5000
$2000

Wait, where is that check of $4000? You made that as a check, on a non-buisness day. See you on Tuesday or Wednesday Mr. $4000 check.


(P)rior Day Debits:
$8000
$5000
$200
$100
$60
$40

Ok...Im confused. No, wait, its Highest Amount to Lowest amount. Prior before Current. Well where is the other $60 i took my boss out to eat with? Ah, you left a tip. We'll get into that.


(C)urrent Day Credits:

$200

Still no $4000 check, oh wait, I see it in pending transactions! But its on hold till the funds are verified.

(C)urrent Day Debits:

$50


Ok so I still dont get it, and there is some purchases missing. I see them on my end: PC online banking, but the bank doesn't.

Ok, lets say thursday you had a balance of $0.00 Dollars in your account.

This is how it will happen.

Prior Day Credits
$0.00
+$7000
+$5000
+$2000
= $13000.00

Prior Day Debits
-$8000
-$5000
-$200
-$100
-$60
-$40
=$-400

Thats 4OD fees. But when I spent my money, it was there, I swear. Not according to EDP.

Now, The Current Day:

Current Day Credits
-$400
+$200
=-$200

Current Day Debits:
-$200
-$50
=-$250

...oh wait the OD fees begin to show up.

-$250
-$38
-$38
-$38
-$38
=-$402

Now you're screwed. Well why didnt the OD fees post right after the transactions?!

Because Customer, when your bank goes by EDP, you know that you have all day monday(or the same business day as F,Sat,Sun,Mon) to get the account current before it goes in with processing. Now had you made a deposit, realizing you were negative, It would have been Monday, AKA the Prior Business day, thus adding to the Prior Day's Credits to your account.


Lets look at a Possible Wednesday:

Wednesday,(Now the Current Day, Making any Transactions Before Wednesday as Prior Day)

You have your $65.00 take your boss out to eat transaction being received by the bank, (You left a $5 tip) and your Gas purchase of $90 come in(Thats your merchant coming to collect on a later day), your check of $2000.00 clears the bank, and since you were negative, you ran to the bank to deposit a $405 to cover your negative balance.

so from this we can conclude the transactions post as such:

Prior Day Credits:
$2000.00

Prior Day Debits:
$90
$65

Current Day Credits:
$405.00

Current Day Debits:
none


So your Account will be:

-$402
+$2000
=$ 1598

$1598
-$90
-$65
=$1443

$1443
+$405
=$1848


So you're telling me my deposit to cover my negative balance, wasnt even necessary?

No, it was, assuming you would have made it monday.


But....thats just my bank "showing as rearranged transactions"(as Chris put it).


NO. THATS EDP.

"Well thats just unfair."

NO. THATS BUSINESS DAYS FOR YOU.

"Well i didn't know about that."

DID YOU READ YOUR ACCOUNT BROCHURE?
DID YOU ASK WHEN YOU SIGNED UP FOR YOUR ACCOUNT, OR DID YOU ASSUME THAT THE BANK WAS GOING TO PROCESS AS TRANSACTIONS COME IN, LIKE YOU WANT IT TO?

"Well nobody gave me a brochure."

SO YOU PUT YOUR MONEY AT A BANK, WITHOUT KNOWING HOW THEY PROCESS, HOW THEY HOLD CHECKS, HOW THEY FEE FOR OD, AND YOU'RE MAD ABOUT IT?


I have a question for you: Did you check all of these things in your Check Register?

"NO WHATS THAT?"

It doesn't sound like a case of the "my bank is screwing me" it sounds like a case of the "im too lazy, I let my bank do my banking for me"

Banks are not there to hold your money and debit and credit as YOU like it. They have regulations, as well as rules, and fees.

Thats why your bank is getting fees. Legally.

"Well thats stupid."

NO. YOU'RE STUPID.

Get a check register.
If thats too much for you to handle, Get yourself a Piggy bank and close all of your accounts. Its the only thing thats going to manage money for you, the way you want it. Im just sure all of those merchants are going to take checks and debit cards from the "First Bank of Me"

Smarter Banking

For a bunch of people who whine and complain about banking, you shouldn’t spend money when you don’t have it. If you know proper money management techniques, you will never overdraft. Yes banks do have regulations that may seem unfair, but it comes down to one simple thing:

When you overdraft, you spend money you don’t have. (You spend the banks, and be happy they honored your transactions)
You spend more money then you have. (see above)
You aren’t patient enough to study bank processing order.
(Open a fucking book.)

Banks offer to pay your items, WITH THE BANK’S MONEY. They are going to charge you. but who would be the same people calling their bank if they were declined at a restaurant?

Spend some time reading up your bank’s fine print. It may save you the $40 you’re upset because you decided to spend $200 when you only had $150. Or when you’re check is returned because the funds aren’t there.

Would you rather pay $40 because you didn’t have all the money, or have your mortgage check returned at two fees, plus late mortgage fees because you were off by a few bucks in your account?

Im not saying that banks are completely legit. Of course they do what they can to make their money, just like everyone else.

But remember, you put your money at the bank. You don’t put your money in a box for others to manage. Only you know where you swipe your card and what transactions are coming in and out of your accounts. If you can’t handle money management, then don’t put it in a bank.

You forget, banks hold your checks for both your account’s safety, and their own. They put it on hold because if they get presented with a bad check, that’s your fault. You put your trust in banks to keep your money safe, but people (not everyone) still bring in bad checks. They put your money on hold to make sure everyone gets theirs. If you don’t like it, cash your check, then deposit it. Let your bank deal with the check after that.

I have worked and banked for numerous banks. Trust me, if worked on both sides like i have, you start to realize people cannot manage money efficiently. They call in to have OD fees reversed because they can’t manage their money.

People call in because they know they spent $600 dollars when they only had $200 because their “ATM told them they still had $200 every time they checked.” And they get mad because the bank won’t give them any more fees back?

ATM’s aren’t completely accurate. Keep an accurate check register and you’d know that. Same with online banking.

Holds are a HUGE complaint. Yes the bank lets merchants place holds on funds. WHY? Because you’d spend it if they didnt. Not all debit transactions are immediate. Swiping your card only means your authorizing a transaction. Merchants can collect at anytime. Its part of your bank agreement, which im sure ALL of you read.

Just because you write checks, does not mean banks know you did. Dont complain when the bank receives the check a month later. If you kept an accurate check register, you’d have already accounted for that. (Dates are no longer a binding agreement)

So the bank places holds on your checks? I would too if i was trying to make sure the people paying my customer had the funds to do so.

What would you complain about more? getting charged back for the amount reg cc gives you for presenting a check to the bank? (AKA getting the funds as a credit from the bank then getting the funds removed because the check was bad) or waiting a few days for that check to clear?

People are greedy and they want to spend as much free money (over-drafting then complaining to the bank about getting fees reversed) as they can.

If you don’t like the way your bank processes, switch banks. You’ll find that nothing will fit your perfect needs.

However, if you learn your bank processing order, and follow that, you will never overdraft your account.

Read the fine print on your account setup, it helps.

And trust me, if you sit around whining and complaining and expecting the perfect bank, you gotta be the perfect customer first. And vise versa.

Banks make a lot of mistakes, when are you going to realize you people do too?

Im not perfect, but neither are you nor banks. But you can educate yourself in the bank’s regulations and federal regulations to be damn near close to perfect banking.