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Sovereign Bank and their predatory practices

Puck it

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I am posting this because I am PO'ed ath this piece of crap bank. I opened up an account with this back with my daughter as it is the one on campus with an ATM to avoid fees. She only uses it during the school year so she could not remember her PIN. She called the bank and requested a new PIN, while the call the person convinced her to get overdraft and linked it to her saving account which at opening we got both checking and savings. The person linked her savings account with $10 in it and has had only $10 in for the whole time the account has been open. I know shame on my daughter but she is still a little green. So she has four transactions last week for a total of $75 and the bank charges $35 for each transaction ($140 total). Since the saviungs accoutn did not have enough money to cover them.

I am so PO'ed and I am getting no sastisfaction from the large Mother F'ing bank.

All she wanted was a new PIN number. Now it is costing us $140.
 

hammer

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Not sure I understand...she got automatic overdraft protection but she is still getting charged fees for purchases that are tapping into the companion savings account?

I have BoA accounts for the kiddos so I'm usually cautious of anything...and for the 16YO one I also insisted on getting e-mail alerts when the account balance is low (which happens a few days after the paycheck is deposited :rolleyes:).
 

Puck it

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Not sure I understand...she got automatic overdraft protection but she is still getting charged fees for purchases that are tapping into the companion savings account?

I have BoA accounts for the kiddos so I'm usually cautious of anything...and for the 16YO one I also insisted on getting e-mail alerts when the account balance is low (which happens a few days after the paycheck is deposited :rolleyes:).

The overdraft protection was linked to the savings account with only $10 in it. The account was originally set up at the bank so that if there was not enough money in the account then the transaction would be denied. Thus avoiding any fees
 

hammer

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The overdraft protection was linked to the savings account with only $10 in it. The account was originally set up at the bank so that if there was not enough money in the account then the transaction would be denied. Thus avoiding any fees
Got it...BoA charges $10 for each overdraft transfer if you have a basic account. Disgusting since transfers can be done online at no charge.

Guessing the customer service rep who sold the overdraft protection didn't disclose all of the details on fees etc. when it was set up.

Hope you eventually get some satisfaction but I tend to think all larger banks are evil.
 

Puck it

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Got it...BoA charges $10 for each overdraft transfer if you have a basic account. Disgusting since transfers can be done online at no charge.

Guessing the customer service rep who sold the overdraft protection didn't disclose all of the details on fees etc. when it was set up.

Hope you eventually get some satisfaction but I tend to think all larger banks are evil.

I know I won't but they will get some hits when people google them at least. I am posting on every forum that I am a member.

I would think a community bank would never done this.
 

thetrailboss

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I'm not sure I'd call Sovereign a "community" bank as it was a pretty big state/regional chain. If you're not happy, contact the BBB or the state banking regulators (if Sovereign is MA chartered as opposed to being nationally chartered).

And how is this "overdraft" protection? That implies that if you overdraw you won't be charged fees. Sounds to me like there was a misunderstanding as to what she was agreeing to do and opened the door to them allowing for overdrafts and these fees. That sounds dumb. I'd just ask them to drop the overdraft, waive the fees, and move on or you will switch banks.
 
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thetrailboss

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I wasn't. Just a piece of crap large bank that cares nothing for customer's.

Sounds like at the least a misunderstanding and at most deception. Again, if I were them, I'd waive it to keep you as a customer. Don't bother calling them about this. Walk into a branch and talk with a manager and ask them to waive the fees. I bet that face-to-face they'd help you whereas on the phone they'd be more likely to say "F-off" because you're not there. At least that was my experience with Citizens. And, coincidentally, I was a member of a class lawsuit against Citizens for overdraft fees and just got my $4.56 settlement check! :lol:
 

MadMadWorld

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I'm not sure I'd call Sovereign a "community" bank as it was a pretty big state/regional chain. If you're not happy, contact the BBB or the state banking regulators (if Sovereign is MA chartered as opposed to being nationally chartered).

And how is this "overdraft" protection? That implies that if you overdraw you won't be charged fees. Sounds to me like there was a misunderstanding as to what she was agreeing to do and opened the door to them allowing for overdrafts and these fees. That sounds dumb. I'd just ask them to drop the overdraft, waive the fees, and move on or you will switch banks.


I work for a truly regional bank in MA and if you wanted to file a complaint I would first address it at a branch. As with anything you may have to work your way up the ladder. But at least at our bank, the branch officer has the ability to credit these fees. If you still feel upset you can file a complaint with the FDIC. Sovereign is awful and I have heard so many horror stories.
 

wa-loaf

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I believe it was the Dodd Frank law that covers this. The banks all used predatory overdraft fees on people. The law made it so you had to opt-in on the overdraft protection. Your daughter got talked into opting in ... I think I get something every month from my bank trying to get me to sign up for it.
 

hammer

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I believe it was the Dodd Frank law that covers this. The banks all used predatory overdraft fees on people. The law made it so you had to opt-in on the overdraft protection. Your daughter got talked into opting in ... I think I get something every month from my bank trying to get me to sign up for it.
I have free overdraft protection but only because I keep enough in a companion investment account. Usually forget that they make you pay for it. Will watch for that for my kiddos.

One fee that really got me was on an investment account that lost money to the point where it was below the threshold for a "maintenance fee". My mutual funds with your company lose money and you have the audacity to now charge me for it?
 

wa-loaf

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I have free overdraft protection but only because I keep enough in a companion investment account. Usually forget that they make you pay for it. Will watch for that for my kiddos.

It only costs you money if you don't have enough cash in another account to cover the overdraft. Not really an issue for most of us I think. I I never overdraft, but kids finances are always on the edge and they don't pay attention to this kind of thing so they get caught up in the overdraft fees and quickly fall behind.
 

hammer

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It only costs you money if you don't have enough cash in another account to cover the overdraft. Not really an issue for most of us I think. I I never overdraft, but kids finances are always on the edge and they don't pay attention to this kind of thing so they get caught up in the overdraft fees and quickly fall behind.
Actually BoA charges $10 even if there are enough funds in the companion savings account...but if there wasn't enough there I'm guessing a debit card transaction would just be denied.
 

Puck it

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After an hour and half, I paid the $300 for the $100 worth of overcharges and closed the account. They said that your daughter opted back in and was read the charges and agreed. Customer service at all time, I did get irate.
 
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