Overdraft charges?

[BROKEDED]

Through an accident of my own but aggrevated by some double dealing by the bank, my "former" primary checking account is overdrawn by about $250.

I WAS going to correct this but the bank has been uncooperative. Can I discharge this in chapter 7? Btw......$110 in purchases, $140 in overdraft charges.

[ROB37LAW]

Not sure but I wouldn't run the risk of being reported to Chex Systems.

[BROKEDED]

I currently am a member of two credit unions and in good standing and will remain so after BK. I may open another account with another CU or bank before BK.

Chex can keep something like that on file for 5 years. I personally don't have an issue with it. At this point I'm more ticked off at a bank that used to have good service but has proven quite difficult to work with lately.

[Dannmcg357]

Not sure but I wouldn't run the risk of being reported to Chex Systems.

Any one have experience with this? My wife had to do this because of the fact that you can't leave a debt off. Can she sill make it right with the bank so they don't report it to Chex Systems?

[AngelinaCat]

Any one have experience with this? My wife had to do this because of the fact that you can't leave a debt off. Can she sill make it right with the bank so they don't report it to Chex Systems?

I can't say what Chex will do, but if your wife wants make it right with the bank, she will need to bring the delinquent account current. At this point it would then be best to close it if there are other accounts--cc, loans, etc--at the same bank. This is because they will cross-collateralize accounts, and will dip into a checking account to bring a delinquent cc or loan account current, leaving your checking account suddenly overdrawn.

The OP doesn't say so, but this scenario sounds like what happened there.

Good luck to you both!

[Dannmcg357]

What she had was "Over Draft Protection" which is basically a loan, so it had to be included as a debt. Perhaps we can reaffirm it? Does the Automatic Stay work both ways or can I start a dialog with the bank? Needless to say we will not be using this CU anylonger.

[BROKEDED]

The OP doesn't say so, but this scenario sounds like what happened there.

Not quite, but I'll try to make it not too long. I used my bank's Billpay for one utility ($85) on 12/31 with a balance of $1027. I made several purchases and withdrawals up until 01/07 with the intent of eventually closing the account since it COULD BE cross collateralized with my mortgage. I didn't have Billpay set up at my Credit Union yet.

The utility payment didn't actually mail until 01/07. It took until 01/14 until the $85 showed posted for 01/12. I had a balance on 01/11 of $95.

Unfortunately, I simply forgot that the check was still outstanding and made 3 other purchases. The problem comes in when I see the transaction postings

01/11----------------balance $95
01/12 $85 check----- balance $10
01/12 $35 O/D FEE----balance $-25 no no no
01/13 $75 debit-------balance $-100
01/13 $35 O/D FEE----balance $-135
01/14 $35 debit-------balance $-170
01/14 $10 debit-------balance $-180
01/14 $35 O/D FEE----balance $-215
01/14 $35 O/D FEE----balance $-250

Notice where the first Overdraft Fee comes in. I still had a positive balance. So I call the bank. I explain that I goofed up and asked that they be removed. I have had, maybe, 8 overdrafts in three or four events in the 22 years I've been with this bank and they've always been slips that were immediately caught by me and were usually because of money going IN meeting money going OUT.

The bank has ALWAYS removed the charges and thanked me for being a continuing loyal customer.

This time, they tell me they can remove $28 of the $140 unless I want to escalate the call.....ok, sure?! The next person tells me they can remove up to 25%...$35. That's when I noticed the date of the first O/D and called their attention to it and asked that it be removed since it shouldn't be there in the beginning.

The lady refused and tried to explain in circles how things worked. I tried to explain simply that I shouldn't have 4 O/D Fees on 4 debits if I at least had money in the bank for any one of them.

Normally, I persist until I get my way but I simply wanted to be done with it and told the lady if she would remove those two fees, then I would make a deposit that day to satisfy the negative balance. She refused. My attorney suggested that I go to the local branch and talk to the branch manager.

I started to but then said, "Screw it!".

I'm sorry for the long story.

[jennordhavn]

Yes, you can discharge that in BK. Just include it on your list of creditors. The bank probably will report it to ChexSystems. After you receive your discharge papers, you can send it to ChexSystems and they will remove the entry on your Chex report.

[BROKEDED]

Excellent! Thank you for the info.

[Dannmcg357]

jennordhavn,
How do you know that? Is it because they have too?

[drowningNdebt]

yup those will be wiped out in your BK. I had $900 with BOA that was wiped out. Same situation, it was electronic deductions for my car loan that they paid and put my account in negative. I went to another bank and opened account no problems.

[PoorGrammyinBK7]

Just wondered what bank - we had something similar happen - overdraft fee caused by an automatic bill payment coming early, but we also had the money in there the same day that debit went through and they had apparently put a "hold" on part of our deposit, causing the "overdraft".

[flyinbroke]

Just wondered what bank - we had something similar happen - overdraft fee caused by an automatic bill payment coming early, but we also had the money in there the same day that debit went through and they had apparently put a "hold" on part of our deposit, causing the "overdraft".

This happened at a new CU to me. I used this as my play account as I pondered switching banks. I had 42 dollars and used it at the bar at a Xmas party. Bar tabs were 28 and 12. This equals 40. 42-40=not O/D.

How-evah....

Apparently the hotel placed holds on my account. I understand this, but since the payments went through they should have disappeared. Blissfully unaware, I deposit 65. I deposit another 8. I use this on four transactions. Nothing amiss. I know I am dwindling to around 5 bucks, I remove the card from the wallet.

Fast forward a couple weeks. I get a phone call from the bank informing me I am 200 dollars overdrawn. I say this is not possible. I log in, I look at the charges and demand to know why I am O/D. I am doing the math, and it is contrary to their charges when you take off the 25 dollar charges.

Next day I pay them a visit, where they explain to me that rather than risk a denied card, they let you OD and charge 25 for the privilege. Each time. I said this should not be OD at all, and I get chastised for "not keeping up with my account." I said I do, I just don't log in regularly, and my last deposit slip showed the amounts I added. She pulls up the sheet and finds over 60 dollars in "holds." I said that even I had logged in, I am not going to see them since technically they are NOT charges. Therefore they should NOT be considered overdrafts. I was able to get all but 25 bucks back...one was legit thanks to this mess. Paid out of my main account. Decided not to switch credit unions, after all.

This is the main reason I like a CC when I travel. They do not put holds on CCs, and if they do, it is not considered money missing from your account.

[stgsm]

I loved it the day my fantastic bank told me that what I saw on their website regarding my checking account was not "always entirely accurate." Good to know since I overdrew the account since I thought the information could be trusted! Just seems like a huge disclaimer should be plastered across the site right? No, then they wouldn't get their OD fees. I'm happy to be closing this account due to cross-collateralization risk and should have done it long ago.

[rcoveles]

I'm not sure if this is correct or not, but I have the same type of situation - my account overdrawn by about $300 due to a bunch of autopays that came out after my LOC was exhausted - thus no safety net. I got about a dozen little NSF notices from my bank. I asked my lawyer, and he specifically told me that they could NOT be included in my Chapter 13 - I'm not sure about 7. I went down and gave them $400 - since they're the only local bank I owe, I don't need them suing me first. Not worth the aggravation.