BB&T has been systematically ripping off its customers by posting debits first, then posting credits or deposit.
This is in stark contradiction to the policies banks, in general, have had in regard to this situation.
Traditionally, banks would post deposits and credits first, usually at 12:00 midnight, then, they would post any debits or withdrawals, summarily preventing unnecessary overdraft charges.
However, in an effort, it seems, to pad their profit margin, they are posting debits first, then posting credits. This new policy, in essence, increases the amount of fees that they collect, as, a lot, if not most people in the lower and middle class have a lower balance when it gets close to payday, or, when we get a winfall and our checking account balance is low, we expect that our deposit will hit the account before any debits.
Also, my wife has her check direct deposited. She is a school teacher. The checks go into the accounts on Thursday. They do not post until after 6:00 A.M. on Friday, again, allowing for fees to be assessed for any debits posted at 12:00 midnight.
It's clear that the banks have instituted this policy to glean more fees from the working class, while leaving the upper class and the well-heeled, virtually untouched.
This practice is an outrage, and if the federal government and state banking regulators won't do anything about it, we the the people, should start taking grass roots measures to rectify this problem.
If you have an overdraft account and you use it, just make sure you repay the bank when you receive their statement. This charge will be a whole lot less the the charge for a bounced check.
Notice how they say banks plural:Bank Overdraft Fees: Gotcha!
By Selena Maranjian April 30, 2008
Bouncing a check can lead to ridiculous charges. Just by going a few dollars over your available balance, you can end up spending hundreds in overdraft fees.
Be careful with fees at banks. They've recently been increasing those fees considerably. Your best bet is to be a careful banker. Try very hard not to bounce any checks, for example, and make sure you balance your checkbook regularly.
You can also get the best overdraft protection by choosing wisely among the options your bank offers. Banks such as Wells Fargo (NYSE: WFC), Citigroup (NYSE: C), and Bank of America (NYSE: BAC) charge you a smaller fee if you let them transfer money from a savings account to cover an overdraft.
Sounds like good business to me. Everyone that has a checking acc't should have an overdraft acc't to make sure they are not charged for insufficient funds.
Rule 1: Make sure your overdraft is paid up as soon as payday. Do not carry a balance on the OD acc't. Same rule applies to credit cards-pay in full when the statement arrives- 25% interest is for idiots that carry a balance. Think about it, average CC balance is about $10K, a $10,000 balance and you pay $2,500/year interest. Not a bad deal for the CC company.
BB&T Posting Process:
From their Bank Services Agreement
7. PAYMENT OF ITEMS. The Bank may process withdrawals and pay items drawn on your account in any order determined by the Bank, even if honoring a withdrawal or paying a particular item results in an insufficient balance in your account to pay one or more other items that otherwise could have been paid out of your account. For example, currently, we process checks with the highest dollar amount first. This method allows your largest checks to be paid first, but may also result in more insufficient funds fees.
Fee income is completely legitimate. No business will provide services for free.
All legalities aside, you obviously can't see the main point, so let me repeat it.
IF THE MONEY IS NOT THERE, DON'T SPEND IT!!!!!
The original posting indicated that money was being spent before his wife was paid. Direct deposit is always initiated the day BEFORE payday to allow for processing. That's standard across the board and always has been.
If your payday is not until Friday, don't spend money on Wednesday and Thursday assuming that float time will cover you.
Think of it this way - if BB&T returned all insufficient items, the person would end up with fees from both the bank and the merchant and could even face criminal charges for writing bad checks.
Nothing about this is BB&T's fault, PERIOD!!!!
Poor Sugar troll - fact is they hold debits until midnight so they give the customer a break. Check with the Federal Reserve, if I am not mistaken credits like automatic payroll deposits are processed in the wee hours of the AM (so you understand - that is after midnite) once they are received thru the Federal Reserve system.
My experience tells me I cannot process data before I receive it. It has been a while since I worked at the Federal Reserve Bank in Richmond and procedures/times of data transfer may have changed but the processes of waiting until data is available to process has not.
In other words sugar troll if you write a check and it received for processing on the 31st (thru the Federal Reserve system) of the month it gets processed at or around midnite of the 31st. If your paycheck is automatically deposited on the 1st of the month it normally gets processed around 2am the morning of the 1st (after the data is received). FYI - my bank normally process automatic deposits between 2-4 am on the expected date.
Debits for the 1st of the month don't get applied until 22 hours later at midnite of the 1st (the Fed normally opens the transfer window for all transactios at 9 am EST/DST and there will be trillions of dollars of transactions in the first hour from overseas and prior day that got processed the nite before by banks).
Of course there are exceptions to this. If I write a check for cash at my bank or do an ATM withdrawal at my bank the debit gets applied immediately (real time not batch processed thru the Federal Reserve system). A cash deposit at the bank gets applied immediately and is available immediately for covering debits (again no Federal Reserve involvement).
The timing of applying debits/credits has more to do when the data is available than with bank policy. The time span (float time) has become shorter and shorter over time. Leave it to trolls like you to try and make it seem there is a comspiracy by the banks rather than increased processing efficiency reducing the float time.
If you have a problem with this then help the banks by telling them how to process data before they have it - that way they can process it a week ahead of time and let you know if there is a pending problem. LMFAO.
that's not really true. i am happy to pay for a hefty profit if some company delivers a product or service that i need. typically it brings so much enjoyment or allows me to make money that i profit myself by it. however, cheating a school teacher out of her hard earned pay and "making the quarter" by making this system of cheating part of BBT's DNA can only end in disaster for BBT.
"Also, my wife has her check direct deposited. She is a school teacher. The checks go into the accounts on Thursday. They do not post until after 6:00 A.M. on Friday, again, allowing for fees to be assessed for any debits posted at 12:00 midnight."
this is what the management of BBT has come to--stiffing school teachers so that the CEO can make millions of dollars of donations to support the "philosophy" of ayn rand. it seems that cheaters are prospering, and the billions of dollars of bonuses paid to investment bankers in the last 3 years are going to be paid by taxpayers, probably through inflation. pretty much the same systemic problem, only a couple of orders of magnitude greater.
in any event, i will cover what's left of my short in this stock after STI announces, i reckon even that p.o.s. can't cover all their losses with visa and KO stock sales, although you never know. haven't made or lost that much in this one, but i'm sure there will be some fancy ass attorney who turns a fortune in class action suits when it all comes tumbling down. peace out, y'all!