I joined a trail on my debit card and I looke at my balance and my account balance wasn't negative but my available balance was. I figured if my account balance wasnt negative and they didnt take out any fees yet and I plan on canceling the trail how can I be charged an overdraft. Well they charge me an overdraft for 35 bucks. Well I call them up and they said that they would fix the overdraft if its canceled. Well one payment before the overdraft that would go through created another overdraft just because of there first overdraft fee. When I asked to talk to a supervisor or another customer service guy that would be less rude he threatened me with an outermadem that he would reverse a credit that he already authorized. Is any of this legal? can they charge you an overdraft on an available balance thats still pending and not taken from your account balance? and how long can they keep charging you 8 dallors a day overdrsft for?
2007-12-27 23:33:51 · 3 answers · asked by Aintitthetruth 3 in Business & Finance ➔ Personal Finance
I will never understand banking. I understand what you are saying but if your account balance never goes negative even if your available balance does then it makes no sense for an overdraft to occur. I think of an overdraft as money that they had to issue that your account didnt fulfill after all pending transactions. The only reason my account balance was below zeo too was from there overdraft. The resulting overdrafts that happend because of the first should be credited in my understanding cause if they agree to credit the first then the second one would of never occured. I just want to know if its illegal for banks to issue a credit then threaten you afterwards by saying they will take it back if you dont just go away just about and stop asking about it.
2007-12-28 02:28:48 · update #1
Yes, it can be charged b/c you made charges or debits agains unavailable funds. That happens when you have something pending, whether its a check that hasnt cleared yet or a transaction that is pending & takes away your available, then a transaction posts in the mean time. For example: you deposit $500 and they give you $100 available until the check clears. You use your card for $75 and $50. That over draws you by $25 of your available--not your balance, which is now $375. So until that hold comes off, anything else will overdraw.
Either way, it was no excuse for them talking to you nastily!
2007-12-28 02:09:51 · answer #1 · answered by ricks 5 · 0⤊ 0⤋
Humm, sounds like good money gone bad. Perhaps you will have better luck speaking to someone of authority when walking into your banking establishment. Don't accept just speaking to anyone ask for the person incharge -there should be a manager over tellers. First gather your documentation (bank rules and statements) read the small print. Usually you have to keep a certain amount in your account to keep it open. This may explain your balance and "available balance". If this is the case it will explain you being charged (example you only have $5 a debit comes in for $6 -they have the right to charge you their fee because you do not have $6 available). This is a reason to have "over-draft protection" on your checking account (pulls from your savings to cover any unavailable funds). When you talk to your bank tell them this is a new experience for you (if you are young tell them you are just learning about financial awareness) and ask them if they will remove the charge. Tell them you like doing business with them and would like to continue "how 'bout a break here?". As well let them know of your concerns of this rep that was rude to you and this person may pose a potiential threat to loosing other bank customers if they treat others like he did you.
Now - arm yourself with finanical info. On line you can check out feedthepig.org (he's also on youtube) go to your library and check out financial books. This mistake just may have saved you big cash in the future!
2007-12-28 01:00:47 · answer #2 · answered by Princess 2 · 0⤊ 0⤋
Overdraft fees are INSANE. I have been there. Now, I always try and keep a cushion of at least $200 in my account. I pretend it's not there, so I never go over. Because I would forget I bought something or whatever, and go over. It's such a waste of money. My bank isn't very helpful of course, bc that is how they make their money. Good luck!
2007-12-28 01:51:01 · answer #3 · answered by birdiegirl 3 · 0⤊ 0⤋