overdraft charge post got me thinking

[kjrmom911]

We just stopped paying our credit cards last month. Husband has sole proprietership business and he has been banking with Wells Fargo and has a Visa and a Mastercard for his business. We are including this in the bankruptcy. I just got the statements for last month and imagine my shock when I saw that they had "paid" the credit cards out of his checking account. The only thing is that there was only 1.72 cents in the checking account so of course these payments bounced. You got it they charged us 70.00 in overdraft fees. I am going to talk with my lawyer on Monday about this, but just wondered what you all think needs to happen. Yikes, this is complicated. Oh..we are filling Chapter 13 withing the next 14 days.

[LadyInTheRed]

The overdraft fees will be listed as a debt on your petition. Be sure to close that account so they don't continue to charge account fees after you file, which would create post-petition overdraft fees which you would have to pay. If you haven't already done so, open an account at a bank where you have no debt.

[kjrmom911]

Thanks LadyInTheRed. We did already open another business account. I am going to tell my husband to close that account. I think he doesn't want to because he is embarrassed to go into the branch and do this, but it has to be done.

[LadyInTheRed]

Thanks LadyInTheRed. We did already open another business account. I am going to tell my husband to close that account. I think he doesn't want to because he is embarrassed to go into the branch and do this, but it has to be done.

Since there is no money to withdraw, he could just write a letter asking them to close it.

[DYLAN150]

I had Bank of America and actually close the account with an e-mail. Got a check from them for about 3 bucks.

[rustymich]

Do it by phone...

The overdraft fees will be listed as a debt on your petition. Be sure to close that account so they don't continue to charge account fees after you file, which would create post-petition overdraft fees which you would have to pay. If you haven't already done so, open an account at a bank where you have no debt.

[AngelinaCatHub]

Thanks LadyInTheRed. We did already open another business account. I am going to tell my husband to close that account. I think he doesn't want to because he is embarrassed to go into the branch and do this, but it has to be done.

I'll tell you why he doesn't want to do that; he's a man (as I am and know). That is what we have wives for. LOL. I believe banks should not honor auto pay arrangements if the account cannot handle them. It is usury to give you over draft fees when plainly the account was insolvent. It was not like you kited a check as the account was insolvent before they auto paid the bill. This hubby (lay it on his hands, he/we deserve it) should call and contest the OD fees, but then you would have to come up with the money to pay the bill even if they forgave the OD fee. 'Hub

[Pandora]

Do it by phone...

or online..... its how we opened our 2nd checking account. No fuss..no muss.

[kjrmom911]

I'll tell you why he doesn't want to do that; he's a man (as I am and know). That is what we have wives for. LOL. I believe banks should not honor auto pay arrangements if the account cannot handle them. It is usury to give you over draft fees when plainly the account was insolvent. It was not like you kited a check as the account was insolvent before they auto paid the bill. This hubby (lay it on his hands, he/we deserve it) should call and contest the OD fees, but then you would have to come up with the money to pay the bill even if they forgave the OD fee. 'Hub

LOL ..you are so right on the money! I am definitely the better communicator, but my name is not on this account. I will urge him to call and contest the fees, but we aren't paying the bill, cuz its credit cards that we are throwing in the bankruptcy, but I do think it is ridiculous that they withdrew money when there was none there and hadn't for a month. Anyways, you all had great advice and the online thing is genius...thanks for everything. You guys really are the best. Absolutely the best forum I've ever been part of!