Issue : My bank charged me $480.00 in overdraft fees for a transaction that never settled.
Details : I placed a stop payment on a transaction. The merchant did not collect the funds, and the transaction never posted to my account. Despite this, my bank charged me $480.00 in overdraft fees and used those fees to cover an overdraft that should not have existed.
The bank was never out any money, because the merchant never received payment. These overdraft fees were charged in error.
I contacted the bank, and the representative stated he would put it in the notes for approval, but no correction was made. This is not a goodwill request it is a correction of a bank error.
Regulation E requires banks to correct errors and refund fees caused by unauthorized or nonsettled transactions. I am requesting a full refund of all overdraft fees tied to this nonsettled transaction.
Requested Resolution : Refund the $480.00 in overdraft fees and correct my account balance.
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