BBVA Compass is sued over fees

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BBVA Compass is the latest bank to catch the ire of customers and attorneys because of overdraft fees.

In a lawsuit filed earlier this week, Houston-based restaurant company Fat Butter accused the bank of deceptive trade practices, claiming the bank posted debits out of the order they were made so it could increase overdraft fees.

For example, the lawsuit claims the bank pushed the largest debit through its account first, creating an overdraft, and then posted other smaller debits so a fee could be assessed for each transaction.

“It is spelled out in the lawsuit that the procedures the bank is following are to the detriment of the account holder,” said Marian Rosen, an attorney for Fat Butter.

Fat Butter filed the lawsuit, which is seeking class action status, in federal court in Houston.

Ed Bilek, a spokesman for BBVA Compass, said the bank's processes comply with all applicable laws. Transactions are posted on the date received by the bank, he said, noting that the order they're received may differ from the order the consumer actually made the transactions.

“You really can't do things in a chronological fashion, the technology just isn't there,” Bilek said. “But if you always have more funds than the transactions initiated, you don't run into a problem of fees.”

BBVA Compass, the U.S. operating arm of the Spanish banking giant Banco Bilbao Vizcaya Argentaria, has 85 branches Houston, including 27 recently acquired Guaranty Bank branches.

In Fat Butter's case, the business, according to the lawsuit, was charged more than $2,000 in fees because the bank allegedly reordered transactions to increase the number of fees charged.

In its contract with consumers, the bank discloses it may pay or charge items to accounts in any order, the suit says, but adds that the bank really always rearranges transactions from highest to lowest. Always reordering transactions is “abusive,” the litigation claims.

Lawmakers and regulators in recent months have criticized banks for trying to bolster profits by amping up fees, including those for overdrafts. Banks call such overdraft programs a courtesy, while consumer advocates say the fees force consumers to pony up billions without much choice.

Most banks introduced overdraft programs in 2001, according to federal regulators. About a quarter of banks nationwide process overdraft transactions by size, from largest to smallest, which can increase the number of overdrafts because the account gets overdrawn more quickly, according to a study by the Federal Deposit Insurance Corp. issued in December.

Federal lawmakers are considering legislation that would require banks to get permission from customers to allow overdrafts.

Earlier this week, Bank of America and Chase announced overhauls to how they charge such fees.

Bank of America said that starting Oct. 19, it will no longer charge overdraft fees if an account is overdrawn by less than $10 for one day. The bank also said it would make it easier to opt out of overdraft protection and cap the number of times it charges overdraft fees at four times.

Chase said it would eliminate overdraft protection for debit cards unless a customer opts in, post debit card transactions and ATM withdrawals in the order they occur, eliminate the fees if an account is $5 or less overdrawn, and cap the number of overdraft fees per day at three.

Texas State Bank changes to BBVA-Compass, fires 52 employees

South Texas' largest bank will lose its name in August as Texas State Bank completes the merger with Spanish-based BBVA.

Starting Aug. 22, Texas State Bank will cease to exist and become BBVA-Compass, taking the name from its parent company, BBVA, and the bank's largest U.S.-subsidiary, Birmingham-based Compass.

BBVA USA, the American arm of the international, announced the changes in letters to customers this week. It will also mean a change to one of McAllen's most notable landmarks, the Texas State Bank building, which will become the BBVA-Compass building.

The bank will also fire 52 employees at their Edinburg regional operations office. The jobs were considered redundant after the banks merged, said a spokeswoman for the company.

The move is little surprise after Texas State Bank was purchased by BBVA in June 2006 for $2.16 billion. Since then BBVA has been working to merge many aspects of the company into the Compass brand, including the bank's lending unit earlier this year.

Management at the bank, including former CEO Glen Roney, will stay on for the immediate future. Roney and other top managers are under contract to stay with the bank as a term of the buyout.

Roney said last month he expected the changes to come very soon.

Customer Dissatisfaction with BBVA Compass Bank

July 5, 2009 by Matthew Frederick
 

In the midst of writing a dissertation and fighting a frivolous SLAPP suit filed against me by a pet shooter, I must take a brief moment to express my dissatisfaction with a truly shady bank: BBVA Compass.

When I started grad school, I picked Compass over its competitors because they had a branch right across the street from my old apartment.  This was a lazy, stupid reason for choosing a bank, and I will never again open a new account without doing my research. 

Compass made and still makes a fortune off the poor.  This is accomplished through a series of tricks and traps, which are perfectly legal.  All banks hardworking citizens are better equipped to overcome poverty if they are informed about the forces working against them. 

Initially, my main issue with Compass was its unique overdraft policy, which feels like it was designed to keep people upside down. 

I had a few years where I was pretty much living paycheck-to-paycheck.  To avoid paying ATM charges, I used Debit and Credit cards for most of my in-person transactions.

With all my previous banks, if my account was empty, my Debit card got declined.  So I’d reach into my wallet and use a Credit card instead.  No big deal. 

Rather than inform its customers when they’re out of money, the policy at Compass is to let the transaction go through (“to avoid causing the customer embarrassment”). 

Thank you Compass! Thank you, thank you, thank you. I spend a lot of time worrying about the opinions of gas station clerks.  Thank GOD I’ve never had to have one of tell me my card was declined. Same with the high school kid who answers the Pizza Hut phone, and strangers from Missouri who sell used textbooks to me online–if any of those folks ever knew I had no money in my bank account, my life would be over. 

In exchange for the bank’s willingness to save us from such paralyzing humiliation, Compass charges a small fee of $40 bucks. I’m serious. And not just once per pay period either; that forty-dollar zinger applies to each individual transaction. 

Suppose you get paid on Friday.  After work you (1) get a haircut. Then you (2) fill your car with gas and (3) order Chinese takeout. While you’re waiting for your food, you (4) pick up a movie rental next door at Blockbuster and (5) a bottle of wine to enjoy with your significant other.

Five relatively inexpensive purchases, except that you used your Compass Bank debit card. That means your money won’t be made available to you until next week, due to their sneaky floating game that Compass also plays with your money. 

(1) Cha-ching!
(2) Cha-ching!
(3) Cha-ching!
(4) Cha-ching!
(5) Cha-ching!

$40.00 x 5 = $200.00 

So next Tuesday, when Compass Bank finally acknowledges the existence of a paycheck your employer sent them five days ago, the bank gets to keep a nice little chunk of your hard-earned money for themselves. And the more you are struggling to make ends meet, the harder it is to ever break out of this predatory pattern. 

Chris Novoa explains what it’s like to be a Compass customer:

Gas transactions are another noteworthy thing regarding the $1 approval on pumping with credit as payment type. In my experience, specifically with Compass Bank, the practice is to let expenditures clear BEFORE deposits, so say I pump $20 with only $5 in my account as credit – well aware this is not a good thing to do, I have in mind to make the deposit the same day, so it’s only a matter of convenience. 

Compass (specifically), will allow – days later showing as rearranged transactions – the gas transaction post against the amount available AT THE TIME of the transaction regardless of a deposit having been made 10 minutes later and will then post retroactive overdraft fees days later after everything seemingly has settled which can then easily become a $300+ problem if one doesn’t notice the activity within a day as their daily overdraft fee adds up very quickly, it seems very intentional that this end of the business has an negative feedback loop quality to it as deposits are slow, but expenditures are fast. 

Compass Bank, now BBVA Compass is exceedingly money hungry when you’re in a pinch to a should-be-illegal extent. 

(Read other complaints from angry customers victimized by this NSF charge here and here).

About a year ago Compass was acquired by BBVA.  For some reason BBVA is in a huge rush to plaster their brand all over the old Compass junk. It should be noted that Compass Bank sucked long before BBVA took them over; maybe that’s why BBVA’s being so pushy about divorcing itself from it’s crappy predecessor. 

Recently BBVA sent me a new card in the mail, indicating that I was REQUIRED to activate the new card, thereby voiding all my financial account info. It just seemed like a hassle to me; I didn’t want to change it, as all my Direct Deposit stuff and eBay/PayPal accounts, etc. are saved under my prior account #. Sure enough though, the jerks over at BBVA Compass gradually whittled away the functionality of my old account. First, they revoked my right to buy things online; then they took away my ability to sign for stuff (so I could only use my card as a Debit card).  And finally, sometime around last Thursday now–heading into a holiday weekend no less–they cut off ability to use my Debit and ATM.   So all weekend my assets were frozen, which meant I was basically on house arrest for the 4th of July.  I’m afraid my rent check is going to bounce as well–those pricks!  I feel violated!

And supposedly all of this harassment is for my safety.  If my safety is in jeopardy by being able to obtain my money whenever I want and request it, and then spending it as I see fit, then I long to be endangered. 

BBVA Compass is officially my ex-bank!

Sure, I probably still have the new card they mailed me laying around my house somewhere; and simply activating it will be exponentially less annoying than finding a new bank, transferring all my funds, updating my records, and wasting a morning answering stupid questions.  But that’s not me–out of principal alone, I not only have to sever all financial ties to this shady bank, but also see it as my civic duty to warn others: Think twice before you doing business with BBVA Compass!

HEY COMPASS...YOU’RE FIRED!

A Disgruntled Customer wanted to share his story (nightmare) of BBVA Compass with all of you. Here's his story:


BEWARE!!!!!!!! This bank is FULL questionable protocols. For instance they allow withdrawals to exit immediately and deny or rather "hold” deposits at the same time.....is a set up to overdraw..... shysty!

That’s not the half of it.

I was at my wits end so I fired them from my personal banking and switched banks. At the same time keeping there merchant services for my business. Apparently they could not get the charges paid from this new account.....2 months ago. So they froze my merchant account (without notifying me)"because we don't have to notify , that's our protocol" at the 1st of the month till the 9th.to the tune of almost 1,600.00??????

Now I’m not one of the lucky ones that works from a pool of money where 1600.00 "frozen" at the beginning of the month can be dealt with easily. I have a 4 month old daughter that needed the extra money that was taken when my account overdrew because 1600.00 was kept from me WITHOUT NOTICE!!!!!!!!!!

Needless to say, I called a few days after I thought something was up. Days after I should have complained and they said they would release the funds immediately....... Thank you ...but...that right there tells me something is up. They refuse to do anything about the fees charged from my bank for there action.  CALL ME, TELL ME, maybe I can do something about it. But no notification on an account freeze is shysty. And in this economy, it makes a big difference to a struggling new father

It is one thing to hold "funds owed" but to freeze an account for 9 days at the beginning of the month WITHOUT NOTICE is just shysty protocol.

This bank is going to get all it can from you WITHOUT NOTICE!!!

DONT DO IT!!! Find a nice credit union or a mattress would be safer and cheaper.
I don’t like you compass....I hope you all read this

I would have given compass bank zero stars but I had to give them something. so there is your one star for giving me back my money...after I complained and you caused a lot of fees from a better bank than you.

HEY COMPASS! YOU’RE FIRED!

Please stay away from Compass Bank!!!

COMPASS BANK Complaint by Tbreeze77

You were reading a complaint about COMPASS BANK.

Filing a new complaint about

This is the worse bank ever! My husband opened the account with them, unfortunately.

We had our visa card stolen last year and we had to jump through 101 hoops with them to get any help. Do not trust anything this banks tells you!!!

We made a $2.00 error once and because they put through all debits for the day before applying the deposit, we ended up with 18 NSF fees @ 38.00 each. Add it up...My sister, Dad and 11 other people I know have had similar situations. I paid one of my bills last week and the institution I was paying posted it to the Compass account (I had $7 in it because I haven't had time to close the account) instead of my "old faithful" Florida Credit Union account. I called the bank right away, they told me they paid the bill and applied a 38.00 NSF, well today, my cell phone was turned off. They didn't pay it and they added 3 more $38.00 NSF fees!!! I called them and guess what? They only accept calls from 9-5 eastern time, isn't this the 7am-7pm banking advertised?? Please if anyone can give me any ideas on what to do about this bank, email me, I want to get this out to as many people as possible, their banking practices are so shady, there must be something that can be done! At the very least, if I can prevent just 10 people from banking with them, I would be happy but prefer millions!

Email:   JTJConcrete@aol.com

Thanks!

BBVA Compass Bank Complaints - Non-sufficient Funds Charges

BBVA Compass Bank

Posted: 2009-03-23 by "JAT "

Non-sufficient Funds Charges Company information: BBVA Compass Banm Jackosnville, Florida United States Compass Bank has charged my account about $250 in overdrawn charges stemming from an oversight that led to a $3 negative balance. By the time I saw the first $38 NSF charge, my online account information showed that a transfer wire deposit had posted and the account was no longer negative. What I did not know is that a small debit charge posted before the deposit, thus another $38 was charged. By this time, I had used my debit card twice more for small transactions, thinking I had a positive balance to cover them. Requests to remove all but the first charge were denied. I have refused to cover the negative balance of the account since all of this is due to ridiculous NSF charges. I have another checking account with Bank of America, so Compass can have their account, but not my hard-earned money!

Independent banks challenging Compass for Waco-McLennan County (Texas) market share

Aug. 01--BBVA Compass, an international powerhouse with $765 billion in total assets, has the largest share of the McLennan County banking market, the Federal Deposit Insurance Corp. reports.

But that does not mean the county has become a mecca for mega-banks. Far from it. The next four banks in the pecking order are locally-owned independents: 

-- First National Bank of Central Texas;

-- Central National Bank;

-- Community Bank and Trust; and,

-- American Bank. 

Figures show that Waco-area residents love to bank "where they not only know your name, but the name of your dog," joked Steve Scurlock, executive vice president of the Independent Bankers Association of Texas.

Scurlock said Waco's banking market is highlighted with medium-sized to small independent banks. "While Waco has a lot of the advantages of a big city, it still has a small-town feel," Scurlock said. "And of all the business entities that mirror that feel, I think community banks would top the list." 

McLennan County has 25 separate banking institutions. That is more than can be found in 10 of 11 metropolitan areas of similar size to Waco-McLennan County. In some communities, the numbers pale in comparison. Midland has only 13 banking institutions and Beaumont has 12. Tyler in Smith County has 27, beating Waco by two. 

Four major national and regional banks have a presence in McLennan County. They are BBVA Compass, Wells Fargo, Bank of America and JP Morgan Chase. Local deposits combined, they have 30.89 percent of local deposits. 

But the four largest independent banks in the county have 39.84 percent of local deposits. Seventeen other independent banks have a 29.97 percent share, according to FDIC figures as of June 30, 2009, the latest numbers available. 

Todd Moore, chairman and CEO of Alliance Bank of Central Texas, joined the fray in 2007, when he rounded up 140 shareholders to purchase the State Bank of Jewett, changed the name and moved its charter to Waco. 

It still has locations in Jewett and Donie, and has 1.31 percent of the McLennan County market. "It was a little bit of a risk," said Moore of his decision to move another independent to Waco. But he said he felt confident that his large and diverse ownership group, which included veteran bankers, would attract customers. He said several factors have made Waco a popular area for independent banks. 

He said local colleges and universities turn out students with degrees in accounting, finance and business that they put to use in the banking industry. 

He said Wacoans seem to have an entrepreneurial streak that pushes them to open their own businesses. He points to the handful of Waco-based companies that award franchises to would-be business owners. The list includes the Dwyer Group, Curves International, Profiles International and Success Motivation International.

Monte Hulse, chairman and CEO of the First National Bank of Central Texas, said many local bankers earned their stripes in independent banks and have perpetuated a culture of independence.

David Lacy and Bill Nesbitt started their careers at the old Citizens National Bank. Lacy now serves as president and CEO of Community Bank & Trust and Nesbitt is chairman and CEO at Central National Bank.

Waco branch Veteran banker Rodney Kroll, meanwhile, left independent Texas National Bank after it was bought by Compass in 1997. His investment group bought First State Bank of Riesel, changed the name to Texas First State Bank and opened a Waco branch. 

"Our independent banks are doing very well," Hulse said. "They are able to compete successfully with the larger chain banks and I think that will continue. 

"The reform issues the government has passed have tried not to harm community banks because lawmakers realize we had nothing to do with the problems of subprime lending." 

Scurlock, with the independent bankers group, said area residents should consider themselves blessed to have such a vibrant collection of independent banks. He said customers benefit from the competition.

Still, for now, BBVA Compass is the county's top bank in terms of market share for deposits, which total $428 million, or 12.95 percent. 

It gained that status when Compass bought financially troubled Guaranty Bank from the FDIC. Compass spokesman Ed Bilek said he knows independent community banks play an important role, but he said Compass provides services he thinks the independents just can't match. 

He said the bank now offers three credit cards, and a first-time homebuyer's program that waives payments and interest for the first three months. 

Its savings program gives rewards to customers who reach goals during the year.

"We want people to know we are a strong and stable bank that is actively lending," Bilek said.