Can a bank refund overdraft fees if the reeason was that your job did not pay you on time?

Question

My fiance works for the govt. When he travels he has to pay all travel expenses and his job refunds him at the end of the month. He recently spent about $1500 on a work trip and did not get his refund on time, so his account went in overdraft. Do you think the bank would be kind enough to refnd overdraft for that reason? No rude answers please.

Answer 1

At their discretion, they can - however - they do so very rarely.

Answer 2

Since a bank is just as much a place of business as any other, the question is not if they can, but if they will. If you have a good rapport with the manager of the branch where the account was opened, then all you can do is share what has happened, and hope for a gracious response. Keep in mind however, that checking accounts, by nature, are supposed to have deposits made before withdrawals. Doing it any other way can lead to lots of aggravation. Consider stashing a few dollars a week in a separate account at the same bank and ask the bank to use that account for overdraft protection, just in case what you have described happens. Just don't use the funds in the ODP account until it is needed, or until after the amount of a typical pay check is set aside.

Answer 3

It is your fiance's responsibility to keep track of his account and how much he is spending, if he knew he didn't have enough unless he received the refund he shouldn't have spend the extra funds, the bank would not consider this type of overdraft a bank error. Most banks will only refund the overdraft fee if it is a bank error. He should contact his employer and see if they will reimburse him for the overdraft, are they admitting error, saying the deposit was late?? My brother-in-law works for the government and he has a separate account, other than his joint account which he uses for the trips he has to go on... SO if his employer will not refund it and this is the first time your fiancee has overdrawn his account OR it has been many years since he has done so, ask the bank for a curtsy refund, you will usually have to speak to a manager for this type of refund.

Answer 4

It's people like Nancy that make me hate working retail. It's a business (not a not for profit organization) and therefore it is out to make a profit. If every customer went into the bank and demanded to get their fees refunded everytime they made a mistake (in this case while the employer is wrong in processing the expense paycheck late, your fiance is at least partially responsible for knowingly using money that was not actually yet in the account) then the bank would go bankrupt.

Having said that, It does'nt hurt to ask, but I certainly would not go into the branch with the attitude of "if you don't do this I'm going to leave the bank"

My 2 cents

Answer 5

The general rule that banks follow is they will refund if it is the banks fault your $ didnt get posted. Given the circumstance, ask them & see what they will do for you. Then ask if it would help if you got a letter from the job explaining what happened & it was thier fault. If you are a good customer & never had this problem before, they MAY cover 1 or 2 of them. They are not required to, so be nice!

Answer 6

It all depends on the manager at the bank, they are able to reverse the fees. It would be more helpful if your fiance has a good standing bank account (like he is not normally overdrawn). Also, tell him to be honest and don't really blame anyone, I understand that his employer was late in paying him, but he shouldn't have spent the money if he didn't have the funds in his account. (Not trying to be rude, but this would be the same response from the bank employees) It is basically at the managers discretion. If you call and you're speaking to the customer service department, and they refuse, ask them to transfer you to the branch. The best thing would be to go to his own branch. Good luck =)

Answer 7

Your fiance should ask his employer for a letter confirming they were late in processing his reimbursement. If they are willing to provide such a letter, have them address it to the bank, include the branch managers name if you have it, and take the letter to your branch. If your fiance is a responsible account holder and does not have a history of overdraft activity they will most likely reverse the charges.
In the future tho he should try to maintain additional account balances to avoid this type of situation from happening again. Also, if his job requires that he travel frequently, he should discuss the possibility of being issued a corporate credit card for business travel.

Answer 8

It's possible but not very likely...it's not the bank's fault!

Your fiance should develop a "cushion" of cash in the account big enough to cover for when the gov't are tardy in issuing his expenses. Trust me, that won't be the last time it happens!

Answer 9

Probably not, since it's not the bank's fault that the employer didn't pay on time. They MAY consider it if this is a first and only time occurrence, so it does not hurt to ask in a courteous manner.

Answer 10

Yes, They can and they will! Have him go into the bank and talk to a customer service representative. As long as his record doesn't show him as a "repeat offender" they are usually more than happy to help! If they're not---mumble under your breath--walk out---and transfer your money to another bank!

God's Speed and Grace,
Nancy

Answer 11

I used to work at a bank, general rule of thumb is- if you have never overdrawn before they will refund. Just remember to be nice & honest about it.