I mean really....what is the worst they can do to your if you checking account is overdrawn?

Question

(I am asking this question for a friend of mine) What if you just stopped using it all together and you decided you just won't use bank accounts and credit cards all together, while still having an overdrawn bank account.

Answer 1

I guess if the person got a horse and moved up into the mountains and lived off the land then there would be no ramifications from walking away from an overdrawn account.

However, if the person wants to stay in society then it is possible that the overdrawn account can haunt them. It is possible for the bank to hand the account over to a collection agency which could wreck the credit of the person. Also, most banks will report things like this to the businesses that track bad checks. This can keep the person from opening accounts at other banks or to have problems with cashing checks.

Lets say the person is going to use only cash from now on. Well, the credit and the check cashing reporting businesses may not seem too important but guess what. The person can still have problems. Many businesses check credit ratings on potential employees. It is possible for the person to not get a good job because of a credit mess. Also, places like apartments will check credit ratings. Losing the nice apartment because of bad credit sucks.

All in all, it is best for the person to fix the problem. It would take years for this stuff to drop off of the credit and there is no time limit for creditors to stop harassing the person. There are statutes of limitations in most states, but that only prevents the creditors from going to court. They can still call and/or write to the person to try to get the money back. Even if it is decades down the road. Most will not go after such old debts but some do.

Answer 2

Depends on how much he is overdrawn. If he is overdrawn a lot they bank could come back and get him for the money that he owes. That and they will report him to a nation system that he won't be able to get any type of accounts again, including credit cards, loans, etc until he clears that up.

Answer 3

it really depends on the situation. if you wrote a bad check that is over a certain amount you can be arrested and charged with deceptive practice, which is a felony. If you wrote a 5.00 check that got returned you will be charged by the bank an initial over draft fee and a sum of money per day because the account is overdrawn. in addition to that you will face any returned check fees the business you wrote the bad check to has in place. In time the account will be zeroed and closed, then the amount you owe will be put into collections, the collection company will then take the required actions to retrieve any loss. If you write a check on that closed account you will be going to prison for quite some time, depending on your state laws on deceptive practice. I hope your friend gets his financial situation taken care of, there is no debtors jail, but there are laws in place for people who mess around with checking accounts. good luck to him.

Answer 4

My bank charges $34 for all overdrafts plus $5 per day until it is paid.

Answer 5

they will send it to a collection agency and from there it will go to the court system and your salary or paycheck will be garnished...depending on the law in your area that could be up to 25% of your pay until it is paid back plus court fees and many other little fees they tack on.

Answer 6

they''ll send the balance to a collection agency. Do you really expect the bank to just forget about it?

Answer 7

They can take you to court and get a judgment placed against you to garnish your wages.

Also, how would you cash your paychecks? You would trash your credit, and ruin your rep instead of paying back something that was your fault???