Consumer complaint received 2021-01-21
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: M&T BANK CORPORATION (MD)

On XX/XX/20 I had a checking account balance of {$220.00} in my M & T Bank account. Due to a mishap with my former employer my direct deposit was delayed in error. Several transactions began to come in from my debit card. These transactions were prescheduled and because I had no idea that my pension check would be delayed. I wasn't able to cancel the charges. My account became overdrawn for {$130.00} and I was charged an overdraft fee. I was fine with that because this was an error that the bank didn't have anything to do with, it was my fault. 

Several other transactions continued to come in around this same time. XXXX XXXX M & T declining them because they all were debit card transactions. They allowed every transaction to come through causing a huge overdraft on the account. I contacted them and questioned why this was done and I was told because I had some overdraft protection that allowed them to pay charges even if the money wasn't available. Well the only problem with that was that I told them a month earlier via phone to remove that feature. Because this caused a small overdraft in XXXX XXXX XXXX pension was messed up again the payroll department, put my direct deposit information into another employees profile. This caused my pension to be deposited into their account and vice versa. ) My husband and I both were on the call demanding they remove this feature. We were told then that it would be removed. They explained the ramifications of what happens when this feature is XXXX. They stated this would have any transaction would be declined if the funds weren't available. We still cancelled it. 

They literally allowed XXXX transactions to come through the already negative account. M & T charged XXXX NSF fees at {$38.00} per transaction. Most of the transactions were less than the NSF fee. XXXX in particular was under {$3.00}. I contacted the bank and demanded an explanation. If the account already had a deficit then why continue to allow transactions to be approved. I was given the runaround for months with no resolution. The account is now negative {$1000.00} and they are threatening to send it to collections. I have no problem paying the money for the transactions that posted, but I do not think it is reasonable for me to have me pay {$500.00} in NSF fees. I believe without a shadow of a doubt that this was done intentionally to create a windfall in the bank 's favor. They literally charged me just about as much as the transactions that posted. I also would like time to clear up the balance. I am XXXX on a fixed income. I receive XXXX and a XXXX pension from my former employer. My husband is currently out on workers compensation for a crushed hand. We do not have an extra {$500.00} to give anyone. Under these circumstances where the bank allowed this we shouldn't be held responsible for anything other than the transactions total amount. I do not want my credit ruined because of their error. 

In closing I am requesting that the CFPB conduct an investigation into these types of practices by this institution. It also seems very convenient that the total amount of the overdraft fees, is very close to the amount I XXXX in a bankruptcy recently from a prior account. I want to pay my debt but I need reasonable payment arrangements and the fees removed. They had the power to decline and they didn't because they wanted to benefit from the NSF fees.