Returned check and overdraft fees?

Question

Hi there, I just checked my online banking statement and it said there was a returned check. I had some outstanding deposits that apparently didn't deposit. Will the person that I wrote the check out to be notified if I have overdraft protection?

My account says that I am entitled to: "No fees for overdrafts or overdraft transfers, and no annual fee for overdraft line of credit."

Answer 1

There are three ways a returned check works and it will depend on how it worked on your account if they check is going to be returned to the person it was written to.

If you have overdraft line of credit and there were enough funds to cover the check then it will be paid and the person will never know

If you do not have the funds but the bank pays the check and overdrafts your account the person will never know

If you did not have the funds and the bank wouldn't pay the check then it will be returned to the person you wrote the check to.

Answer 2

Do you have overdraft protection? For example we have a loan liner account that money is automatically taken out of incase we use our debit card or write a check with no funds. The company/person never knows we did not have the money. The money is automatically transferred into the checking account. When we log in to our online banking, the only thing that shows is that money is transferred from one account to the other. I am posting a good link from about.com regarding overdraft protection

Answer 3

If you have overdraft the check will go through unless something gets messed up in the system. In that case just go see a personal banker and see if they can get it straightened out.

Answer 4

It depends....most banks will try to put the check through again in a few days...others will simply return the check to the person you wrote it to. You might want to contact your bank and see which of these policies they follow.

Answer 5

If you have overdraft protection, the check was processed and the recipient will never know.