over draft information

[MrJenkins]

What is the name of your state (only U.S. law)? PA

So my girlfriend over drafted her personal bank account or she will when the bank rolls on Monday. Her bank has a 24 hour grace period to make the funds right and they don't process anything on Sunday. She expected a check from one of her clients that assured her that they were going to ACH it to her account today and paid for her rent on Friday by check. The LL cashed the check today, but the client did not ACH it to her account.

She likes this bank, never had any over drafts in the 3 or 4 years she has had this account and really doesn't want to be on chex systems or lose her banking with them. She can either pay it when she gets paid by her client + the fees, or she wants to set up a payback plan to pay it back.

I told her to talk to the banking manager and see what they say, but she is freaking out right now so I jumped on to ask you folks. She understands she is dumb for paying before seeing the money and she won't make this mistake again

What do you suggest?

 

[sandyclaus]

What is the name of your state (only U.S. law)? PA

So my girlfriend over drafted her personal bank account or she will when the bank rolls on Monday. Her bank has a 24 hour grace period to make the funds right and they don't process anything on Sunday. She expected a check from one of her clients that assured her that they were going to ACH it to her account today and paid for her rent on Friday by check. The LL cashed the check today, but the client did not ACH it to her account.

She likes this bank, never had any over drafts in the 3 or 4 years she has had this account and really doesn't want to be on chex systems or lose her banking with them. She can either pay it when she gets paid by her client + the fees, or she wants to set up a payback plan to pay it back.

I told her to talk to the banking manager and see what they say, but she is freaking out right now so I jumped on to ask you folks. She understands she is dumb for paying before seeing the money and she won't make this mistake again

What do you suggest?

Most banks have an overdraft policy where they will either pay the check against insufficient funds, or they will return it to the maker. In both situations, the bank will usually charge a fee.

If your g/f has no history of overdrafts, then the bank is probably going to just pay the check and debit her account for an overdraft fee. She will have a little bit of time after that to bring the account current.

Your g/f is freaking out over nothing at the present time. However, if the client doesn't ACH the money into her account as promised, her account will remain overdrafted until she brings it current. Each additional check or debit presented will be processed according to the bank's overdraft policy, and if they pay them, she will rack up quite a few more overdraft charges before the account can be cleared.

 

[MrJenkins]

thanks sandy, fortunately for her, that would be her only item pending and her plan is to not use that account until it is current.

 

[FlyingRon]

After she gets the money in place to cover the draft, she can make a personal attempt to talk to the bank. Some when asked will forgive the FIRST TIME overdraft charges.
Some won't but it doesn't hurt to ask.

 

[MrJenkins]

After she gets the money in place to cover the draft, she can make a personal attempt to talk to the bank. Some when asked will forgive the FIRST TIME overdraft charges.
Some won't but it doesn't hurt to ask.

Thanks everyone,

I just got a text from her. The clients money went in this morning, she has a positive balance and she spoke with their customer service and they waived the fee since she never had an OD before.

I think she learned her lesson, but thanks for the advice everyone