Problem Solver: Overdraft Fees

Overdraft fees got you over the edge? One Upstate man is downright angry over hundreds of dollars in fees his bank hit him with instead of declining his purchases. Dianne Derby tells you how to keep it from happening to you and where you can complain if you think your bank has gone too far. It's a 7 On Your Side Problem Solver.

"I'm just real frustrated," said Wachovia bank customer Mark McLean.

McLean has had enough of Wachovia. He took his business elsewhere when he says he was hit with more than $500 in overdraft fees. Each time he made a purchase he says he was charged a $35 fee...some of those debits were as little as $3.21 at Taco Bell.

When News Channel 7's Dianne Derby said, "The truth is as a customer you're responsible for knowing what's in your account" McLean replied," Correct" and said "I don't go on there every day and check it."

Talk about some expensive tacos! Every time McLean pulled into the Taco Bell he was paying more than 10 times what his order was worth in overdraft fees.

"If I had any idea I was charging that for a Taco I'd never done that," said McLean. "That's ridiculous. Why would I want to pay $40 for two tacos? It doesn't make sense."

Wachovia spokesperson Christine Shaw says the company gives their customers several overdraft protection options to keep this from happening.

When asked if he ever thought of getting overdraft protection McLean replied," When I first started I did but then never did get into it."

Wachovia removed $280 worth of the overdraft fees once 7 On Your Side sent them his complaint. Spokesperson Christine Shaw said she couldn't tell us why they didn't give it all back because of privacy issues but did feel the bank went above and beyond in his case. McLean still argues why they simply didn't deny his purchases.

"If you can go use your debit card and not be able to get any money out of an ATM you shouldn't be able to be able to go buy a taco," said McLean.

"For a lot of our customers they would prefer the courtesy of us paying because it could be embarrassing if you do go to a restaurant or to buy your groceries and you are denied and unable," said Shaw. "You really may need those groceries or you really may need to make that car payment go through."

McLean says he'd rather have been embarrassed than be faced with overdraft fees he can't afford.

"If the funds ain't in there they should say 'insufficient funds', 'rejected'," said McLean. "I would never have been in this situation I am in now if that had happened."

Remember many banks offer ways to alert you of low account balances through text or e-mail messages. But if you're worried about overdraft fees the Federal Reserve says you can protect yourself by doing the following:
--Link your checking to savings or a credit card
--Set up an overdraft line of credit

If you think your bank has gone too far you can file a complaint with the Federal Reserve by calling 888-851-1920 or click here for a complaint form.