- Report: #311758
Complaint Review: First Market Bank - Richmond Virginia
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First Market Bank
111 Virginia St. Richmond, 23219 Virginia, U.S.A.
Phone:
804-327-7500
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First Market Bank Unreasonable bank overdraft fees and how they are calculated Richmond Virginia
I recently overdrafted my bank account at First Market Bank, a local bank, after my husband erroniously paid our mortgage from my account instead of his. I called the bank before 9:00 to tell them what I had done and immediately took a check in for $1,650 to cover the mortgage check. The bank was very understanding, which I took to mean that all was okay. $300 in overdraft fees later I know that they are not!
My issue is with HOW the banks decide which checks to pay. They pay the largest items first - in my case, that was the $1,650 mortgage check. In my case that payment overdrew me by $1,200. Then they paid 11 checks and returned 7. All of the checks that were returned or paid were small checks/POS charges (for amounts such as $2.00, $4.61, $5.00, $6.00, etc..). I now am dealing with hundreds of dollars in overdraft fees PLUS I will have all of the fees from the companies/persons who had checks returned to them (at $30 to $40 a pop that is another $200-$300!).
Had the bank paid the smaller items, my charges would be ONE overdraft fee from my bank ($32) and no return fee from the mortgage company, because they automatically run it through a 2nd time before charging a fee!
The bank says they altruistically do this so that I do not have my big items (mortgages, car payments..) returned. That is bologna! They do it this way so they can rack up more overdraft fees from their depositers! Banks earned is excess of $18 billion in overdraft fees in 2007! It is their LARGEST source of fee income. They love it when a consumer overdraws their account.
From what I understand, most banks have the same practice. However, it does not make it right. I am 100% confident that this is a preditory practice and would jump right on board if there was a class action suit against the banks. Does anyone know of any class action suits going on right now?
Robin
Richmond, Virginia
U.S.A.
My issue is with HOW the banks decide which checks to pay. They pay the largest items first - in my case, that was the $1,650 mortgage check. In my case that payment overdrew me by $1,200. Then they paid 11 checks and returned 7. All of the checks that were returned or paid were small checks/POS charges (for amounts such as $2.00, $4.61, $5.00, $6.00, etc..). I now am dealing with hundreds of dollars in overdraft fees PLUS I will have all of the fees from the companies/persons who had checks returned to them (at $30 to $40 a pop that is another $200-$300!).
Had the bank paid the smaller items, my charges would be ONE overdraft fee from my bank ($32) and no return fee from the mortgage company, because they automatically run it through a 2nd time before charging a fee!
The bank says they altruistically do this so that I do not have my big items (mortgages, car payments..) returned. That is bologna! They do it this way so they can rack up more overdraft fees from their depositers! Banks earned is excess of $18 billion in overdraft fees in 2007! It is their LARGEST source of fee income. They love it when a consumer overdraws their account.
From what I understand, most banks have the same practice. However, it does not make it right. I am 100% confident that this is a preditory practice and would jump right on board if there was a class action suit against the banks. Does anyone know of any class action suits going on right now?
Robin
Richmond, Virginia
U.S.A.
2 Updates & Rebuttals
lstreet131
Ruther Glen,Virginia,
United States of America
Unfair business practices
#2Consumer Comment
Thu, May 24, 2012
I was a customer of this bank for a long time and paid hundreds of dollars in fees because of the way they ordered their transactions. Some of the much bigger banks have been sued for this same reason. I stopped using my account due to how completely unfair and rude they were! I think they should pay their dues just like the other banks!
Robert
Wallingford,Connecticut,
U.S.A.
There's nothing to sue over.
#3Consumer Comment
Mon, February 25, 2008
It's legal and the banks tell you about it in your account terms and conditions. The only thing you can possibly do is contact your congress person. Just don't hold your breath waiting for anything to change.
