Would a bank let you go way over your overdraft protection? A cousin of mine says hes got 3,000.00 draft?

Question

protection and because I check that another family member wrote put him in the hole for $20,000.00. He is lying right?

Answer 1

Not sure I understand your question. Did the back charge your cousin $3,000? Or is that the amount his account is negative after then $20,000 check? Anyways....

Depending on the bank. Smaller banks and credit unions tend to have better customer service and they make let things slide to keep you around. Especially if you have been a good customer for years with a good track record.

Bigger banks tend to be mostly automated, there is a set number in the system, if the amount goes over that, there the overdraft protection won't kick in.

That being said, unless your cousin has a good record of having *a lot* of money in the bank. I can't imagine them covering $20,000, that would just be a stupid move on their part.

Now, if your cousin goes to the bank and says a check was illegally written. The bank might put the money back in his account during the investigation and refund if it is proven that your cousin did not write the check.

Answer 2

When a bank cashes a large check for you they put a hold on it. Usually the bank does not cash out the entire check. The bank puts the check into your account and only releases a portion of the check. Once the check clears they will release the rest of the money for withdrawal. It is possible that if a family member gave him a $20,000.00 check they released the $3000.00 to your friend. If your friend automatically withdrew the money and then the bank learns the check was not good (stolen, insufficient funds, etc) then the bank expects the money back. If your friend took the money already then they will take the money in his account, and put his account in the negative. And then of course they will go about the overdraft protection, and go to the savings account. If there is not enough money to recoup the funds then your friend would be charged the overdraft protection fee, the overdraft fee, and some banks charge per day you are in the negative. Racking up $20,000.00 in overdraft fees is a lot though.

Answer 3

No, a bank would not approve $3000 overdraft protection and since I have been reading your posts, YOU are lying. Don't "play" in Yahoo Answers or you will get banned.

Answer 4

one check wouldn't do that, and overdraft fee is usually 30-40 bucks per transaction. The best overdraft protection is to know how much money you have and spend accordingly.