i once had an empty checking account. but i was really desperate for some money so i withdrew $400 from it anyways. believe it or not, the atm gave me the money! how is that possible? it went negative $400. i eventually deposited the money in the account to bring it back up, but i was surprised that it was possible to go negative on a checking account. is it legal to withdraw money from an empty checking account?
2007-03-02 14:54:54 · 10 answers · asked by Pi 1 in Business & Finance ➔ Other - Business & Finance
illegal, yes - when you do it on purpose. Outside of jail, it can ruin your credit and your reputation with ANY bank. So don't do it again.
2007-03-02 15:03:19 · answer #1 · answered by catielovesjesus 1 · 0⤊ 0⤋
Yes!!! Most banks give an allotment of overdraft protection. If you have even decent credit it will probably be around $500. You can overspend to that amount before they shut you off, but they will charge you a fee for doing so. The longer you leave it overdrawn...the more fees add up. If you put only $400 in your account to cover your ATM transaction you may want to check into if it is still negative because fees may have made $410 or $425, etc.
2007-03-02 15:25:50 · answer #2 · answered by RG 1 · 0⤊ 0⤋
It is called being overdrawn. Some bank accounts have overdraft protection, others don't and there is usually a charge that goes with it as well as interest on the amount overdrawn.
If it makes you feel any better, most companies operate on a line of credit which is basically an overdraft that is secured by assets of the company.
2007-03-02 15:05:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
it is illegal especially when you know you are flat broke, however drawing out the amount of your let's say direct deposit same every week and is due to hit the bank in the next 24 paycheck as long as you don't mind paying your bank the fees for overdrafting. not going to mention what bank but I was once told go ahead and bounce checks it's the only way we can make any money on you. but on a serius note same bank charged 19 dollars for the first couple of overdrafts now they charge 30 each. guess i screwed that up.
2007-03-02 15:15:20 · answer #4 · answered by freelee 2 · 0⤊ 0⤋
It depends on if its straight checking account. Some banks will give you an outomatic overdraft, for which they charge a fee and high interest rates.
In some cases its better than bouncing a check. If you knew you had a line of credit available then its not illegal, if you didn't know they would supply the money then its check kiting (fraud) and you can be prosecuted.
2007-03-02 15:12:16 · answer #5 · answered by mark 6 · 0⤊ 0⤋
Some banks go ahead and allow their customers to become overdrawn. They make money on it because they charge you an overdraft fee.
My son kept doing this so I went to the bank and asked to "opt out" of this service.
It is not worth becoming overdrawn because of the ridiculous fees they charge.
2007-03-02 14:59:37 · answer #6 · answered by Libby 6 · 2⤊ 0⤋
It depends on your income and if you have a savings account, if you can cover it the bank will allow overdrafts, as long as you don't abuse it.
2007-03-02 15:11:51 · answer #7 · answered by Book of Changes 3 · 0⤊ 0⤋
There is a legal term for it. It's called "fraud".
Removing money when none is actually there for removal is a crime- uttering a forgery.
You are lucky, dude- you could be doing time. Not sure why you aren't.
2007-03-02 15:01:48 · answer #8 · answered by CYP450 5 · 0⤊ 0⤋
Yes it is possible, but the bank will probably charge you for over drawing.
2007-03-02 14:58:42 · answer #9 · answered by Anonymous · 0⤊ 0⤋
mine is
2007-03-02 14:58:13 · answer #10 · answered by Anonymous · 0⤊ 0⤋