By Dave Lieber of The Fort Worth Star-Telegram

Amanda Godawski and Cecilia Harsch both battled banks over unfair overdraft fees. Beating the odds, both won and got part of their money back.

Godawski turned to a congressman for help.

Harsch got relief from a federal agency that oversees banks.

Take note. Both stories show how to fight banks when they ignore your complaints about overdraft fees. This problem is not going away anytime soon.

Congressional help

Godawski, introduced to readers in August, thought she transferred money into her checking account using her home computer. But the transfer didn’t go through, and Compass Bank charged her $579 in overdraft fees and $7-per-day charges.

She fought the bank, stopped using the account and asked to close it. But the bank wouldn’t let her.

When the U.S. Treasury direct-deposited her federal income tax refund and then her stimulus check into the account, Compass Bank confiscated the money and applied it to the charges.

Along with her father, Ted, the pair began contacting elected officials and The Watchdog. When I inquired, the bank told me it was Godawski’s error. They refused to budge.

But U.S. Rep. Kenny Marchant, R-Coppell, has a lot more sway with banks, especially since the congressman sits on the House Financial Services Committee. That panel is looking at the proposed Consumer Overdraft Protection Fair Practices Act, now bottled up, in part, because of the effort of bank lobbyists.

Godawski’s problem caught the congressman’s eye, he told me later, because he used to be mayor of Carrollton, where Godawski’s father lives, and because he has kids close to her age. Godawski is 24. The congressman contacted the bank: "I just asked if they would consider refunding the fees," he recalled.

"The bank should have closed her account when it became obvious that she lost control of it," he said. "It would have saved them and her a lot of grief."

After the congressman’s call, Compass wrote Godawski a letter stating that a search of its computer system’s raw data showed that she had logged on and tried to make a transfer, but it didn’t go through. Denying any error, the bank decided to refund $465, without mentioning the remaining $114. A check was enclosed.

The six-page letter, with repeated denials of wrongdoing and detailed explanations of bank policies, offers far greater detail than any of the bank’s previous communications with her. A notation at the bottom shows that a copy went to the congressman.

Bank spokesman Ed Bilek said the congressman’s inquiry had no effect on the bank’s change of heart. "It’s not because the congressman called," he said. "We try and work with our customers, OK?"

The Watchdog gives an attaboy to Marchant. "I make a lot of phone calls for my constituents," he says. "Hopefully, the bank will change its policy." Another Watchdog attaboy to Godawski’s father, who wouldn’t quit. He told her: "No one is going to steal money from my daughter."

Godawski adds: "It taught me to never give up, especially when you know you are telling the truth. With so many of these companies, it’s easy to say, 'They took my money. It’s a big old company. It’s not going to work.’ But if you stick to it and get help, even if it takes six months, it can happen."

Online complaint

Harsch’s problem with Wells Fargo came when she deposited money into her checking account, bought groceries and gas, and then made a withdrawal through an ATM owned by another bank.

Those transactions led to a chain reaction of credits and debits between the two banks that didn’t match — leaving, in the end, more than $1,000 in overdraft fees.

Every bank has rules on when deposits get credited, and the rules vary by bank and by situation. It’s important for customers to know the rules at their bank, so they don’t get caught short.

Harsch tried everything she could to solve the problem after she noticed it. The Arlington woman visited two bank branches seeking a cooperative representative. She talked to a branch manager and a district manager. Their advice? Visit the other bank. But when she did, the other bank laughed her off.

She visited www.fdic.gov and found a link to the Federal Reserve’s Web page. There, she learned that Wells Fargo is regulated by the U.S. Office of the Comptroller of the Currency.

She found that site and filed an online complaint, writing: "I am very confused as to how they charge me non-sufficient fund fees when I haven’t overdrawn my account."

That regulatory agency referred her complaint to the bank. A bank letter arrived later, stating that "as a courtesy" the bank was returning $455.

Wells Fargo declined to talk about her case, but its letter to Harsch states, "When these transactions were pending, our system projected an overdraft for your account.  . . . These fees were not due to a bank error because the transactions were made using a non-Wells Fargo ATM."

Harsch says, "Getting that much back was totally amazing to me."

Source: Fort-Worth Star Telegram | http://www.star-telegram.com/news/columnists/dave_lieber/