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An 84-year-old retiree was shocked to find that his bank had charged him over $4,000 for transferring funds from his “Overdraft” account into his regular account as recommended by a bank officer as a way to temporarily handle a screw-up by the bank in the processing of his overdrafts.
The original method for handling overdrafts, in use with the bank for many years, was to charge the depositor interest on the balance in his Overdraft account resulting from transfers into his regular account. Because of its own internal errors, the bank failed process these transactions as it had been routinely for many years. As a result, depositors’’ checks started to bounce, resulting in complaints from his creditors and a serious concern about his credit rating.
To try to remedy the problem, the depositor called the branch manager several times and received no response. He then called and wrote to the District Manager and again received no response.
In a last ditch effort to straighten out the mess, he went to the bank and spoke to a sympathetic bank officer. The banker suggested that the depositor transfer funds from his Overdraft account to his regular account first (instead of the funds being transferred automatically as the overdraft occurred) until the problem was resolved. This “distinction without a difference” turned out to cost the depositor over $4,000 in bank fees within a few weeks.
The problem was exacerbated by the failure of the bank manager, who was later terminated, to return the depositor’s calls attempting to resolve this problem followed by the failure of the district manager to respond to the depositor’s further calls and letters.
Incidentally, the depositor had had excellent relationship for over 20 years with the predecessor bank, which was recently taken over by the current bank and the relationship turned sour.
The depositor is making last-ditch efforts to resolve the problem. We will keep our viewers posted on developments.
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