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  1. #1
    Join Date
    Jan 2009

    Default National City Overdraft Fraud

    My question involves a banking matter in the State of Michigan with regards to national city bank. I am interested in any and all information related to class action lawsuits against national city bank regarding overdraft fraud. If anyone can point me towards any ongoing cases of this nature or especially any opportunity to participate in a class action lawsuit against nationalcity bank I would appreciate it. Perhaps a group of like minded individuals exists who would like to get the ball rolling?

    I have had an online bank account with national city for about three years. I have noticed what appears to be serious discrepancy in their book keeping. There have been times when I overdrew my account and paid the $34.00 fine without question but I began to notice some time ago that my online history of credits and debits shifts in mysterious ways. For example when I view my balance Tuesday I will see debits A, B, C, D and E listed in the expected order of purchase and processed as debits against my balance. When I view again Wednesday I will see the same debits but in a different order for example A, C, D, B, E and a new debit F.

    Now debit F will cause an overdraft charge in the sequence of A, C, D, B, E, F and would not have caused an overcharge in the original sequence of A, B, C, D, E, F. In addition the running history of my account balance will be listed 'unavailable' for extended periods of time often more than 24 hours right around the time that overdraft charges are incurred. Recently this pattern seems to be escalating as I recently noted X balance in my account, made two purchases totalling .3 of X over the course of five days, and now find a negative balance including two $34 overdraft fees. Please refrain from comments about past purchases and late processing from vendors. My question here relates to changes in the sequence of previously processed debits.

    To me it seems that if I can produce a record of a history of this pattern, stating an account balance with history and subsequently changing that history and rearranging the order or debits to bring about an overdraft, that could be actionable. I appreciate any thoughts on this subject.

  2. #2
    Join Date
    Jan 2008
    Toledo, OH

    Default Re: National City Overdraft Fraud

    Start keeping a written record of your transactions (which you should be doing anyway, as a safeguard) instead of relying on your online account information, as online account information is rarely updated in real time.

    I seem to recall from my own days with NatCit (I left them years ago) that this was noted upon registration for online services. It will also be noted in your account terms.

    Most banks will immediately show purchases as Pending Transactions. This typically shows in order of transaction. There they will remain until processing, which can take anywhere from a few hours to a few days.

    When processing the transactions, banks deduct debits from largest to smallest, and then add in any deposits. All cleared transactions will then move from Pending to the transaction record proper.

    It's quite a racket. It's also legal, and is noted in your account conditions and disclosures.

  3. #3
    Join Date
    Jan 2009

    Default Re: National City Overdraft Fraud

    It is indeed quite a racket. I got them on the phone today over it. I got a "pending" charge from the 27th, as of the 30th it still hasnt cleared, and the bank managed to pull 100$ in overdraft fees from my account.

    I asked: If I gave you money and the money is not in my account, and its not in the hands of the merchant, where is it?
    Answer: It is pending.
    Question: where is pending.
    Answer: the money hasnt been moved.
    question: If it hasnt been moved why is it not in my account?
    Answer: the money is pending.
    question: I wonder how much money is "pending" at any given time.
    Answer: billions.

    They also told me the federal government had given them regulations allowing them to hold pending funds for three days. So I guess they just get to play with however much money everyone spends using a credit card for three days. That is some really wild lobbyist bullshit imo. I will be glad to see these banks all crash and burn lol. Thats not very constructive is it? oh well I would love to see them fall.

  4. #4
    Join Date
    Apr 2008
    Texas (Dallas area)

    Default Re: National City Overdraft Fraud

    There has to be a "pending" transaction. The bank "holds the funds" here is how it works;

    You give a merchant a check. The merchant runs the check through a clearing house when you hand them the check. The clearing house puts a HOLD on your account for the amount of the check. (how else would the bank know how much to hold?). The funds are held until the check is presented. Therefore, the money is PENDING.

    Do not blame the bank, this is the way banking is done today, I dont care what bank you use, they all do the same thing. This prevents FRAUD and the check is now instantly good or not.

  5. #5

    Default Re: National City Overdraft Fraud

    If you don't like your banks debit/check policy why not just withdraw cash? That way you know exactly how much you have. It also gets the "pending" part out of the way.

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