Continuous overdraft fee
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Have you ever heard of this? Apparently a “continuous overdraft fee” can be charged by a bank or credit union if your account is overdrawn longer than a certain period of time. If that period of time is five days, for example, if you haven’t brought your account back into the black by the end of that time period, then a daily charge (typically of $5 to $7 dollars) can be added on until your account is positive.
November 4th, 2006 at 11:35 am
Yes, I’ve seen that. Never had it happen to me though.
October 31st, 2007 at 2:16 am
I’ve just been “hit” with continuous overdraft fees from my bank,without notice. They are charging me $3.00/day for every day over 8 that I am overdrawn. The thing is,I’m on SSDI,and only get paid once each month,so,of I’m overdrawn,it’s the next month before I can clear it up. This month I will have to pay $55 in overdraft fees on top of the $32 it costs when you do overdraft. So,now I have to figure out how I’m going to eat and buy me blood pressure medicine after being hit with this fee. I can’t work extra hours to make a deposit. The bank claims they sent out letters,but 3 people in my family have accounts at this bank,and none of us got letters.
Tell me how this is fair to those of us on a monthly income? Our checks are already not enough to live on,now we have to worry about that too.
November 16th, 2007 at 6:54 pm
Thanks for this warning. And for Jacquie, so sorry you are experiencing this. I, too am receiving my retirement $$$ early via federal disability payments. So I understand how stressful this would be when income is limited. This cannot be contributing to you caring for your health. Do you know any of the managers at your bank? Maybe they would consider waiving these fees (which I am surprised are legal.), in light of the fact that you are on disability. I had never heard of this as I’ve had a couple of overdrafts over the years and was charged $29 flat. So is it allowed by a law that only some states have? Anyway, pray there are no more but just in case hope my banks do not get wind of this multiple fee option. Bizarre, too, since the banks make use of our money and generate more from it than most of us ever will. Best of luck getting this straightened out.
December 15th, 2007 at 6:46 pm
WEll,I’ll just have to stop using the bank. I like having a debit card,but not that much. Far as I can tell,these fees are legal,but it seems to me that they are aimed at those of us on monthly incomes.