Consumer complaint received 2018-08-03
Company: REGIONS FINANCIAL CORPORATION
State: IN
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Fee problem

Complaint:
I was charged an overdraft fee for a posted item that didn't actually overdraft my account. My balance after the posted XXXX XXXX transaction was {$1.00}. There are 2 pending debit card transactions that have not hard posted yet. I have been in XXXX for 18+ years and I've not seen where a customer is charged for " pending '' potential overdrafts. My posted balance after the overdraft fee of {$36.00} is XXXX. How is that?? I used the wrong debit card at XXXX XXXX yesterday after XXXX. As soon as I realized this, I deposited {$2.00} to cover the difference. In my experience an overdraft fee is assessed the following day after the item hard posts to the account, giving the customer time to correct the overdraft. I also thought most financial institutions had implemented the no fee if overdrawn less than {$5.00}. Perhaps Regions is not one of them. I still think the way my transaction and fee were presented on the same day still not resulting in a posted actual overdraft, is more than shady. I'm really hoping this is some kind of system error and it will be corrected. I emailed Customer Service about this and was given a templated response regarding their posting order. " When a purchase or withdrawal is made with a XXXX, those funds are immediately held ( or " frozen '' ). Purchases made with a XXXX have been guaranteed to that merchant and represent goods or services that have already been received. This means that during processing each night, there must be enough funds available in the account to cover the items that are posting and the items that are still pending. 

The balance in the account before posting on XX/XX/2018 was {$6.00}. There was 2 transaction pending ( holding ) for {$2.00} which left an available balance of {$3.00} for us to pay the items posting to your account that night. 

There was then 1 item presented for payment on the account for {$5.00}. We paid the items for you, but the account was charged the overdraft fee since the funds were not available to pay the item. Even though the funds were in the account, they were not available since they had been guaranteed to other merchants for the pending items. 
I know this can be complicated. To make things easier to understand, we provide a breakdown of your balance on this date ( or the date of any overdraft occurrence ), from your Account Details screen. All you have to do is click the green fee name in the description column. This will allow you to view the Overdraft Notice. '' So I will now pay {$36.00} X 3 for a difference of {$2.00}. I will now get charged 2 additional {$36.00} fees for the " held '' {$1.00} and {$1.00}, even though I deposited enough money to cover those. Since they charged the {$36.00} fee for the {$5.00}, and {$1.00}, and {$1.00} ... .but because the {$1.00} & {$1.00} are pending, when they post tonight, they will charge me OD fees for those AGAIN. I have never seen transactions pending handled this way in banking. It is thievery and should be a violation banking acts. The way these transaction reflect on my statement doesn't even reflect this logically. I was charged an overdraft fee on the same night that the transaction posted.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation