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Overdraft on a debit card
Mai-Kero
Registered User regular
Registered User regular
So, I went over my checking account by $30 due to some issues with holiday shopping online. My bank, National City, covered it with money from my savings account, which is fine, because I have way more in there, as I generally keep the checking low to curb any impulse spending.
What I'm wondering, though, is if the overdraft has any negative consequences. As in, does it affect my credit score in any way? I'm guessing my bank will charge me like $5 or something, but is this like a black mark on my financial record, or is it fairly harmless?
What I'm wondering, though, is if the overdraft has any negative consequences. As in, does it affect my credit score in any way? I'm guessing my bank will charge me like $5 or something, but is this like a black mark on my financial record, or is it fairly harmless?
Mai-Kero on
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Heck, one of my banks does a pre authorized loan payment every month, one month I realized that account was 20$ short a day after the payment was supposed to come out. When I called they said don't worry about it, the system rechecks the account every couple days and will pull the money when it's available. They'd only contact me if it went 14 days late.
The only minor thing is that if you do this constantly, they will bitch at you due to some regulations about the number of transactions on a savings account.
A courtesy overdraft charge means that your bank pays the amount of the purchase plus it charges you a fixed fee, usually about 25$.
It's like..protection against bounced checks. Just keep your balance on the green though, because you still have to pay it back to get out of negative numbers. And avoid doing it so much as a short-term loan, because it is quite expensive. Since any purchase, even some M&M's can make you incur that overdraft charge, and 25$ M&M's just plain suck.
A $25 would be pretty awful because it was a $15 and two $10 purchases that went in last.
Shit.
The problem was, for some reason my online statement counted some pending charges towards the total, but not others, so I had a few online purchases that weren't reflecting how much I actually had left.
This is why maintaining your own bank balance is so critical. Check ledgers are still useful because you can keep them instantly up to date.
However, if you overdraft with an empty or non-existant savings account, it's a good $35 fee per transaction.
Alot of banks also like to reorder your transactions from largest to smallest each day to ensure that they can rape you of the maximum ammount.
You're not L33T enough for IDI/RN FTP!
Yeah, I've been raped on that shit more times than I can count. Just assume anytime your balance is even close to zero, the bank will reorganize your transactions in the manner most likely to result in them getting to charge you $30 per transaction for overdraft stuff.
Shit, my account got stolen from once (via ATM after I had left), and it took the bank months to give me back all the overdraft charges they threw at me.
I'm glad I'm not the only person who's had this problem.
I've had my bank (WaMu) put unpredictable and ludicrously long hold times on deposits. Then I'll see all of a week's worth of debit and visa withdrawals magically go through all on the same day, which was coincidentally one day before all of the week's worth of deposits went through.
the "no true scotch man" fallacy.
That's the only thing they haven't done to me. If I've deposited a check, and it'll cover the negative balance, they won't ding me, even if it hasn't cleared yet.
You're not L33T enough for IDI/RN FTP!
Probably the banks decision actually as they consider you a poor risk.
I wrote a check $1.75 over my balance. Watch them charge me $35 for it.
Happy fuckin' holidays from Bank of America.
I hope they get pwnt in that class action lawsuit out in cali.
You're not L33T enough for IDI/RN FTP!
Heh, my sister, when working part-time as a paralegal for some case BoA was involved in, kept billing for hours she wasn't working, just to stick it to them for charging her so many fees over the years.
Unethical as fuck, but still awesome.
Tell your sister that she is now a personal hero of mine. ^.^<3<3
You're not L33T enough for IDI/RN FTP!
Banks charge those high fees because it's a pain in the ass to basically loan a person money if they go into the negative. Most banks, however, will probably remove the first fee if you go talk to them.
But, if you're continually going into the negative, maybe it's time to re-evaluate your transaction record keeping.
I have ignored the fuck out of them. And if they continue to harass me with phone calls, I very well may get a lawyer.
They're trying to get you to do what? I work for chase, and would like to know if someone is doing something that isn't allowed.
May not happen actually, I know my bank (Banknorth) only charges you if you are a certain amount over the balance (I think ours is $5). We get a notice of an overdraft, but it shows a fee of $0 instead of the normal $35 (just went up).
Additionally, they took the money from my savings anyway, so I have no idea what's going on. I should probably call them.
I used my debit card and was over by 78 cents, Charter One turned around and charged me $30 like every five days. This happend right before I went out of town for two weeks. By the time I got home and finally cheaked my bank account, I was in the hole $100 and I was absent from my student job for the summer and didn't have money to pay it off, which had to be done all at once because the $30 would just keep building even when I paid some of it back. I got a guy at Charter One to lower the fee and I gave him about $120 and he said he'd take care of the rest and I'd be good.
He took care of nothing and my account was still hit for $30 once a week. I went back and he said he'd get it this time, but I still had about a $50 charge to pay and the account eventually was closed. By the time I got my job back in the fall, I had to pay that $50 still just to open a new account.
All for 78 cents.
Stay on top of that overdraft.
That was annoying. Having the bank charge you way too much for an overdraft, and the payment gets bounced. I have no idea what the point of the overdraft was then, the card should have just been rejected...
Heh. Small fee.
I got docked $200 on an overdraft of 50- which was overdraft for less than 3 days. I got them to take off $100, but in general banks are bastards about it. I wish the debit card infrastructure were efficient enough to not charge an if there are insufficient funds, but I guess there really isn't much incentive for them or Visa to go to that kind of trouble.
It's a little different for me- I use a small (well at least compared to BoA) midwest regional bank, and they happen to have exclusive rights to building ATM's (or any kind of bank presence for that matter) on campus. I'm registered with my on campus address, so they know the chances of my leaving them aren't all that high.
Oh, I'm sure their practices are "valid" given their publically-stated company policies, however they really do just try to fuck people with overlimit fees. So, public policy or not, I refuse to pay 270 dollars in overdraft because they wouldn't close my account.
I'm pretty sure that you could just close the account and walk away to another bank if you want to go through the trouble of setting up a new account (I would if I lived in a city or in an area where one bank's ATMs didn't dominate)
I don't think it's worth the legal fees for them to come after you for under a thousand dollars, but don't quote me on that.
No, the problem is I went overdraft by a dollar, they charged me 32 dollars, I called and asked them to overturn it. I was denied. I then told them to close my account. They refused and said to pay the negative balance first, which I was unable to do at the time and explained to them - even if I did accept the penalty which I did not, and they kept charging me again and again and again.
And then they started calling and sending me threatening letters, which I have completely ignored. It escalated to 270 dollars. I'd rather get a loan from someone for a few thousand to take them to court over their practice of them not closing accounts simply to extort more money from people. Legal? Maybe. I'm willing to find out, though.