What will happen if you dont pay the overdrawn fee at the bank?

Question

my checking account only has like 2 dollars in it, and i overdrew somehow. there's gonna be a $32 fee that is gonna make my account negative over $32. if i just never use my account again and leave it negative so i dont have to pay the fee what will happen? i have chase bank and it seems like there's these huge fees for every little thing.

Answer 1

You will be reported to Check Systems and they will send you to an in-house collections agency. Depending on your banks policies, you will probably be charged a continuous overdraft fee as well. This fee is usually like five dollars and will be charged daily after so many days have passed without covering the amount of the overdraft.

I would recommend paying the fee. Check Systems is a consumer credit reporting agency, and if you get reported to them you probably won't be able to open an account at any bank for a few years. Also, more and more merchants are processing checks electronically, such as Wal-Mart. Checks that are processed this way are verified by check systems at the time of purchase. Meaning that you will be declined for your purchase if you try to pay for your merchandise with a check.

You may try calling to waive the fee. Most large banks have guidelines for waiving fees not do to a bank error. You usually have to have an average balance of so much and have to have been a customer for a certain amount of time. It's worth a shot. Just give a sob story.

Plus your account agreement says that you are liable, you definitely don't want to go to court.

Answer 2

If you have never overdrawn your account before, call you bank and find out who the personal banker is that is assigned to your account and the phone number, then call them and explain it to them and ask that they waive the overdraft fee and close the account. Any bank I have ever worked as a personal banker you are allowed to waive the first overdraft instance on account.

If you let it go what will happen is that they will close the account, write-off the amount and turn the debt over to a collection agency and report it to a central credit agency and you will not be able to get another checking or even saving account, anywhere, until you clear the $32. It could aslo prevent you from receivng any further credit...credit issues think if you won't clear up a $32 issue that you will not make payment on an unsecured credit card and you wont' be able to receive a card; even your existing credit card holder have the legal option of terminating your credit and demanding immediate payment on any outstanding balance within whatever time period they have in their notices, which is 10-30 days.

Don't let this go; work with your personal banker and get it resolved and if worse case scenario, pay the amount and close the account but write the CEO of the company they have lost your business permanently (they may waive-reimburse if your personal banker has declined) so you can preserve your credit in the future. You never know when you will need it.

Answer 3

If you explain to them that you got "off" while balancing your account, they may take the fee off. Explain that you didn't do it on purpose and ask forgiveness.

You can't just not pay it. It will eventually show up on your credit and it will probably keep you from opening a new account with any other bank. It's $32, just be glad it's not more and pay it! They do have the right to start charging interest once it's turned over to collections.

Answer 4

two things...

1. it may increase with fees and go to collection, can show up on your credit.


2. If the account is forced closed you will be reported to Chexsystem which is like a credit bureau for banks. You may not be able to open another account in the future.


Best thing to do, go into the bank, bring the balance to zero and close it.

Answer 5

The fees will compound. In effect, you are guilty of stealing if you don't pay it back along with the fees. (Remember, you signed an agreemetn with the bank when you got the account. They can take you to court.)

Chase bank is the worst for fee overload.

Answer 6

It will show up on your credit report, and you will be placed on Checks Systems. It will be difficult for you to open another account anywhere else, as you are reported. They can also put you in to collections. Your account could be charged off, wich is hell for your credit. If this is the first time, talk to the bank manager, they can sometimes waive the first one. I work at a bank, and in some cases, we let it go.

Answer 7

Sometimes banks charge fees for having a negative balance, and whats worst is that on Fridays they will charge you 3 times the amount for having a negative balance.

Answer 8

The fees are outrages but they will probably turn it over to a collection agency after many attempts to to get you to fix it .I suggest fix and just monitor your account more closley. if you cant pay the whole amount do what you can when you can so this doesnt end up on your credit report.

Answer 9

Hey there, had that happen to me, and my account went to a collection agency. I still didn't pay, and they charged it off and it really affected my credit rating. I'm trying to clear my credit history now so I can eventually buy my own house, and i'm wishing I paid everything off when I had the chance. I'd go ahead and pay what you owe if you can.

Answer 10

You want to avoid chexsystems because once your name lands there it takes a while for it to be taken out. You will not be able to open up an account anywhere unless you pay the balance.