President Donald Trump - J.D. Vance Administration

#18,852
#18,852
BowlBrother85 said:
No .... Let me explain :

Let's say you have $105 in your checking account. Let's say you buy a hat for $10 with your debit card. Let's then say you buy gas. Now, when you charge gas at the pump, First Tennessee would only pre-authorize $1.00. It was up to the customer to keep up with exactly how much gas they bought. Let's say you bought $40 in gas. Let's then say you go shopping and buy a shirt for $70. First Tennessee will let that purchase go through because the gas was pre-authorized for $1.00. Let's then say you buy $20 of food at the grocery store. Once again, First Tennessee will let that go through, because as far as their system is concerned you still had money available. Finally, let's say you bought a candy bar for $3. That also goes through. Now, as far as First Tennessee's automated system is concerned you have only spent $104 ($10 + $1 + $70 + $20 + $3 = $104). However, you have forgotten about that gas purchase of $40 over the 3 business days it takes to process. So, you have actually spent $143 ($10 + $40 + $70 + $20 + 3 = $143).

The ethical way to process your charges would be in the order in which they were made, like this = $10 + $40 + $70 (1st overdraft fee) + $20 (2nd overdraft fee)+ $3 (3rd overdraft fee) .... and you would be hit with only 3 overdraft fees of $35 a piece for a total of $105 in fees.

The way First Tennessee Bank was processing those charges you would be hit with 4 overdraft fees of $35 a piece because they were processing your charges out of sequence, and taking the amounts out from largest to smallest in order to maximize the number of times they could charge you with that $35 overdraft fee. $70 + $40 (1st overdraft fee) + $20 (2nd overdraft fee) + $10 (3rd overdraft fee) + $3 (4th overdraft fee) ..... and you would be hit with 4 overdraft fees for a total of $140.

Does that make sense? I hope so, because that took a long time to type. LOL.
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I read the article and the very straightforward example the plaintiffs attorney put forward.

They attempted to sequence their charges so as to only (intentionally) overdraw their account on the final (largest) debit. Fully expecting to be hit with the $35 fee. Then got upset when the charges weren’t debited in the order they made them.

An attorney for the class action lawsuit hypothetically explained it like this:

A customer has $100 in their account. That morning they get a $5 coffee. A little later in the day they spend $50 on gas. Then that evening they go out for a family dinner at $200. The customer knows they will have an overdraft fee but they’re willing to endure the 30 to $35 fine.
 
#18,860
#18,860
85SugarVol said:
I read the article and the very straightforward example the plaintiffs attorney put forward.

They attempted to sequence their charges so as to only (intentionally) overdraw their account on the final (largest) debit. Fully expecting to be hit with the $35 fee. Then got upset when the charges weren’t debited in the order they made them.

An attorney for the class action lawsuit hypothetically explained it like this:

A customer has $100 in their account. That morning they get a $5 coffee. A little later in the day they spend $50 on gas. Then that evening they go out for a family dinner at $200. The customer knows they will have an overdraft fee but they’re willing to endure the 30 to $35 fine.
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That wasn't true in every case. It wasn't always intentional. Sometimes customers would simply forget what had been pre-authorized for $1.00. It's easy to do, when there is a 3 business day processing time and you're buying a lot of gas. In those cases, I would always refund the overdraft fees.

In any event, the ethical business practice is to process the charges in the sequence in which they were made. Not from largest amount to smallest amount.
 
#18,861
#18,861
BowlBrother85 said:
That wasn't true in every case. It wasn't always intentional. Sometimes customers would simply forget what had been pre-authorized for $1.00. It's easy to do, when there is a 3 business day processing time and you're buying a lot of gas. In those cases, I would always refund the overdraft fees.

In any event, the ethical business practice is to process the charges in the sequence in which they were made. Not from largest amount to smallest amount.
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The correct process is to not be a moron with your money. We have far more issues bc we coddle people.
 
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#18,862
#18,862
BowlBrother85 said:
That wasn't true in every case. It wasn't always intentional. Sometimes customers would simply forget what had been pre-authorized for $1.00. It's easy to do, when there is a 3 business day processing time and you're buying a lot of gas. In those cases, I would always refund the overdraft fees.

In any event, the ethical business practice is to process the charges in the sequence in which they were made. Not from largest amount to smallest amount.
Click to expand...
I imagine they were legally allowed to process the transactions in the manner they did. Doesn’t mean it was ethical.

But my “give a damn” tank is on empty for that type of willful behavior.
 
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#18,863
#18,863
volfanhill said:
The correct process is to not be a moron with your money
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It’s one thing to be a moron with your money, and then pay a stupid tax.

The example the plaintiffs attorney laid out was a willful act to overdraw their accounts. I just can’t muster much sympathy for that behavior.
 
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#18,864
#18,864
85SugarVol said:
It’s one thing to be a moron with your money, and then pay a stupid tax.

The example the plaintiffs attorney laid out was a willful act to overdraw their accounts. I just can’t muster much sympathy for that behavior.
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... and I will say again, based on what I observed, it was not always willful conduct on the part of the customer, and the business practice of processing debit card charges out of sequence, and by largest amounts to smallest amounts in order to maximize the number of overdraft fees, is an unethical practice. First Tennessee (now known as First Horizon) knew they would lose the class action suit in court. Hence the reason they agreed to pay the $17 million settlement to the affected customers and cease this practice.
 
#18,868
#18,868
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#18,870
#18,870
BowlBrother85 said:
No .... Let me explain :

Let's say you have $105 in your checking account. Let's say you buy a hat for $10 with your debit card. Let's then say you buy gas. Now, when you charge gas at the pump, First Tennessee would only pre-authorize $1.00. It was up to the customer to keep up with exactly how much gas they bought. Let's say you bought $40 in gas. Let's then say you go shopping and buy a shirt for $70. First Tennessee will let that purchase go through because the gas was pre-authorized for $1.00. Let's then say you buy $20 of food at the grocery store. Once again, First Tennessee will let that go through, because as far as their system is concerned you still had money available. Finally, let's say you bought a candy bar for $3. That also goes through. Now, as far as First Tennessee's automated system is concerned you have only spent $104 ($10 + $1 + $70 + $20 + $3 = $104). However, you have forgotten about that gas purchase of $40 over the 3 business days it takes to process. So, you have actually spent $143 ($10 + $40 + $70 + $20 + 3 = $143).

The ethical way to process your charges would be in the order in which they were made, like this = $10 + $40 + $70 (1st overdraft fee) + $20 (2nd overdraft fee)+ $3 (3rd overdraft fee) .... and you would be hit with only 3 overdraft fees of $35 a piece for a total of $105 in fees.

The way First Tennessee Bank was processing those charges you would be hit with 4 overdraft fees of $35 a piece because they were processing your charges out of sequence, and taking the amounts out from largest to smallest in order to maximize the number of times they could charge you with that $35 overdraft fee. $70 + $40 (1st overdraft fee) + $20 (2nd overdraft fee) + $10 (3rd overdraft fee) + $3 (4th overdraft fee) ..... and you would be hit with 4 overdraft fees for a total of $140.

Does that make sense? I hope so, because that took a long time to type. LOL.
Click to expand...
Makes sense. Customer is conditioned to look at bank account balance before making purchase and expects the bank to deduct transactions sequentially and timely. They make purchases when they see the balance is sufficient not knowing the gas purchase is non sequential and will create a negative balance.
 
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