USBank isn't as nice as I thought

[kr43002]

I opened up an account with US Bank. The same day I went to cash a check and deposit part of the money into the account. 

I needed to pay for some repairs and this was an insurance check (I got in an accident earlier this month).

So most of the money did not go into the account.

They didn't put an immediate hold on the account so I didn't think anything of it. I have had the account for about 3 days.

Anyway I went and put gas in my tank and bought lunch with the cash that was available in the account. (enough to not overdraft it)

The next day I see my account is negative by the ammount I cashed and then I see a couple overdraft fees. What the heck?! 

I went back to the bank and they said the check has a hold on it now, and they are going to see what they can do to fix this, but the hold is going to happen until the 18th. I am fine with the hold but I did not overdraft my account and getting a $36 fee for this is complete b.s.

[RSX]

i think it is highly likely that they will reverse those fees - call them and demand it

unfortunately, banks don't release deposits in the first couple of months as quick as we would like - they hold checks until they begin to trust you

i joined USBank from Wells Fargo about a year ago - i took it slow and steady and used both accounts for 2-4 months, moving items over one at a time, got direct deposit setup - and then did not experience any check holds after that short period

[CreditPacMan]

This seems to be a thing with new accounts. When I opened my account with Chase when I was in college over 12 years ago, they used to withhold my financial aid check for 10 days and make a small portion of it available for immediate use.

US bank will probably reverse the overdraft fee, but you will need to ask I think. 

[lovelife2]

Same here, i banked with US Bank, Wells Fargo, Capital One 360, Ally and they hold check and ACH, seems like forever (4 biz days).   Slow and steady is definitely the way to go.   I remember depositing a check and it held for like 5 or 6 days.   

[CreditInspired]

So sorry OP you weren't told this when you made the deposit. If I recall correctly, an insurance check is similar to a bank draft, and is usually never available for 4-7 days.

But keep in mind that since this was a new account, the bank must have precautions in place, especially with all the bank scams nowadays. So, IMHO, I don't see USBank's practice as not nice; however, I agree with everyone else that they should reverse the OD fee. 

Just let this be a lesson-learned. Always, always ask if there's a hold and always, always check your account to ensure the funds have been released, and are not pending. 

[Anonymous]

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@CreditInspired wrote:

So sorry OP you weren't told this when you made the deposit. If I recall correctly, an insurance check is similar to a bank draft, and is usually never available for 4-7 days.

But keep in mind that since this was a new account, the bank must have precautions in place, especially with all the bank scams nowadays. So, IMHO, I don't see USBank's practice as not nice; however, I agree with everyone else that they should reverse the OD fee. 

Just let this be a lesson-learned. Always, always ask if there's a hold and always, always check your account to ensure the funds have been released, and are not pending. 

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This.  And more to the point:

 I am fine with the hold but I did not overdraft my account and getting a $36 fee for this is complete b.s.

Because of the hold, which you are fine with, you actually DID overdraw your account.  The funds weren't there.   As @CreditInspired says, banks do this to avoid classic scams where you deposit a large check that will not in fact eventually clear and take the funds out.   Yes, in your case the check is genuine but the bank doesn't know that at the time you withdraw the funds.

[kr43002]

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@Anonymous wrote:

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@CreditInspired wrote:

So sorry OP you weren't told this when you made the deposit. If I recall correctly, an insurance check is similar to a bank draft, and is usually never available for 4-7 days.

But keep in mind that since this was a new account, the bank must have precautions in place, especially with all the bank scams nowadays. So, IMHO, I don't see USBank's practice as not nice; however, I agree with everyone else that they should reverse the OD fee. 

Just let this be a lesson-learned. Always, always ask if there's a hold and always, always check your account to ensure the funds have been released, and are not pending. 

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This.  And more to the point:

 I am fine with the hold but I did not overdraft my account and getting a $36 fee for this is complete b.s.

Because of the hold, which you are fine with, you actually DID overdraw your account.  The funds weren't there.   As @CreditInspired says, banks do this to avoid classic scams where you deposit a large check that will not in fact eventually clear and take the funds out.   Yes, in your case the check is genuine but the bank doesn't know that at the time you withdraw the funds.

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I cashed a check, and went and spent money on repairs. There was no hold until the next day. When I opened the app before making a purchase there was a positive balance, no hold. nothing. I did not overdraft the account. There was more money available at the time of the transaction then the purchase amount. The next day the put the hold on the account. The bank not only has access to the check but also had access to $400 dollars. getting pinged for 5 overdraft fees is ridiculous when the actual balance of the account did not dip below $0. Yes i understand that them putting a hold on the check caused the available balance to drop below $0, but according to the check cashing policy, they may put a hold on the account at the time of cashing a check. Not the next day, at the time of it. They did not put that hold until the next day, which is why i am pissed for getting $180 in fees for this.

[RSX]

ok - when you called USBank, what did they say they would do about the fees?

[kr43002]

I went into the branch on friday, they said they would give me a call back.

Called in today and they told me no, and then i said them im closing the account and im now on hold waiting for a manager 

[kr43002]

After threatening closing of the account they reversed the fees.