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33 votes

Can a bank make overdraft protection mandatory?

What you describe is not overdraft protection, it is overdraft. The term overdraft protection applies to actions that the bank would take if you are in a situation which would otherwise result in ...
littleadv's user avatar
  • 177k
31 votes

Why should I not keep my checking account at $0 and use overdraft protection?

There are several issues with this plan. The financial institution may limit the number of free overdrafts they allow. After that they charge a fee. When they cover a check/debit card transaction ...
mhoran_psprep's user avatar
24 votes

Using a credit card to clear my overdraft

Given the circumstances, I'd use the card(s) for every normal purchase I'd make over the next months, and use the cash to pay the overdraft. This would effectively move the debt to the card(s), at no ...
JTP - Apologise to Monica's user avatar
22 votes

Is a debit card dangerous for an account with low balance and no overdraft protection?

The "danger" of using a debit card is that what backs it is your real money. If there is a fraudulent transaction, the money that is used to settle the transaction is yours. Yes there is a dispute and ...
Todd's user avatar
  • 2,302
16 votes

Why should I not keep my checking account at $0 and use overdraft protection?

Aside from the other answers, which are very good, there is this. Your savings account likely gains interest at a ridiculously small rate, less than 1%. Unless you have many thousands of dollars in ...
nuggethead's user avatar
  • 2,081
11 votes
Accepted

Legal to apply dormant account fees until the account overdrafts?

Note: I am not a lawyer; this is not legal advice. Yes, this seems to be quite legal. The article What Happens to Inactive Bank Accounts on My Banktracker starts with the warning: What happens to ...
TripeHound's user avatar
  • 9,170
10 votes
Accepted

Overdraft Protection - Is this legal?

I work at a bank. Here's an explanation plus a few thoughts for your situation. Obviously, these statements are "in general" - your bank may vary slightly in its policies and procedures. The ...
acousticismX's user avatar
10 votes

Why should I not keep my checking account at $0 and use overdraft protection?

I know I once got warned about drawing from my savings account too many times within a certain amount of time (maybe four times in a month and a fifth would have triggered a fee). If you have similar ...
Dave's user avatar
  • 829
9 votes

Is a debit card dangerous for an account with low balance and no overdraft protection?

Todd has a great answer. Just building on that there is also the danger when you want to hire a car, stay in hotel etc. that you need to put down your real money. Instead what typically happens is the ...
user73552's user avatar
  • 211
9 votes

Using a credit card to clear my overdraft

Typically, No. If you read the details, balance transfers (and cash takeouts) come with a fee between 2.7 and 5 %, plus the interest for the year (which they often offer 0%). Basically, you increase ...
Aganju's user avatar
  • 37.7k
7 votes

What will happen if I deposited a check that was part of a scam and I already spent some of the money?

There is information missing from your post which makes giving you a clear answer difficult. For instance: Who discovered this was a scam - you or the bank? Has the bank already paid the checks you ...
RiverNet's user avatar
  • 5,380
5 votes

Is a debit card dangerous for an account with low balance and no overdraft protection?

The dangers are: When (not if) your card gets used for fraudulent transactions, those funds will be gone from your account until you get it resolved, which might take awhile. When that happens, you'...
user82972's user avatar
5 votes

Why should I not keep my checking account at $0 and use overdraft protection?

I don't know who you bank with but Chase will happily close your account for you: VIII. Closing Your Account Either you or we may close your account (other than a CD) at any time for any reason or no ...
MonkeyZeus's user avatar
  • 8,473
4 votes

Open Money Transfer card in my name for family member's debt

Fundamentally, your motives are at cross purposes. You want to be loyal to your family, and get along with them, but also do money transactions with them. Those three don't play well together. Don't ...
Harper - Reinstate Monica's user avatar
4 votes

Is a debit card dangerous for an account with low balance and no overdraft protection?

Many years ago, I used a Visa debit card for all purchases. Then there was a fraudulent charge on the card; luckily, my bank spotted it and refunded it immediately. I asked them what I could do to ...
gidds's user avatar
  • 417
3 votes

Is a debit card dangerous for an account with low balance and no overdraft protection?

Federal law in the United States (as the OP mentions USAA) sets different requirements and limits on a user for reporting fraudulent use of a credit card versus a debit card. While as a matter of ...
user662852's user avatar
  • 8,389
3 votes

Open Money Transfer card in my name for family member's debt

When you take a money transfer on the credit card they will pay it into your bank account. After that point you have control of the cash and will be able to transfer it to somebody else's bank account ...
rdans's user avatar
  • 357
3 votes

Do overdrafts on a checking account affect credit score?

You won't get reported to a credit bureau for an overdraft, that's a service offered internal to the bank. The only way it would affect your credit score is if you had an overdraft fee that you didn'...
user1442498's user avatar
3 votes

Overdraft Protection - Is this legal?

Is it legal to tack on charges like that? When you signed the account terms and conditions, it contained provisions for overdraft 'protection'. How is that ethical or customer focused? The ...
Derek_6424246's user avatar
3 votes

Using a credit card to clear my overdraft

Unsecured debt is usually quite costly unless you already have established good credit. You're paying over 18% on your current overdraft balance. If the cost is a pound per day regardless of the ...
NL - Apologize to Monica's user avatar
2 votes

Hotel, double charges, overdraft and bank interest

First of all, this does not sound like a debit situation. Every debit has to be authorized by the entry of a pin code. So, the hotel could not have arbitrarily created a new debit charge. Usually, ...
Five Bagger's user avatar
  • 9,785
2 votes
Accepted

Thinking on asking for an overdraft, if I pay the entirety of it next month, how much interest do I have to pay?

It depends on your bank and the details in the agreement, but typically, interest is calculated daily. So if you borrow 1000 EUR for 1 day, you pay 15% * 1000 EUR * 1/360 = 42 Cent (41.666667 cent to ...
Aganju's user avatar
  • 37.7k
2 votes

How much risk is a debit card, if stolen?

I'm concerned that someone may steal the card and charge something, causing the balance to go negative for 'x' dollars, where 'x' may be many thousands. Call your bank. I had a situation a number ...
quid's user avatar
  • 49k
2 votes

Using a credit card to clear my overdraft

Most credit card balance transfer deals are only for paying off other credit cards. However there exist a small number of cards that offer good "money transfer" deals. The fees will likely be higher ...
Peter Green's user avatar
  • 2,944
2 votes
Accepted

How does the rental company charge an empty debit/credit card with €0 credit limit? (Transferwise)

This was most likely a "force post", similar to the force authorization (also called voice authorization) which ceejayoz mentioned in a comment, but with even less checking for approval. In ...
Bobson's user avatar
  • 2,177
2 votes

Why should I not keep my checking account at $0 and use overdraft protection?

At least in the United States, even if your bank allowed it, most people don't have enough savings to notice the effect. Savings interest is typically calculated based on average daily balance, so if ...
phyrfox's user avatar
  • 764
1 vote

Bill pay sent multiple unauthorized house payments and caused an account overdraw. What should we do?

I bet BoA is going to sweet talk(AKA bullshit) it as "system error", while BoA likes many banks are known to conduct such "grey" practice as shown here or here. In fact, computer systems will not do ...
mootmoot's user avatar
  • 4,193
1 vote

Bill pay sent multiple unauthorized house payments and caused an account overdraw. What should we do?

We cannot go to BoA and discuss it with them for you, obviously. What you should verify is that in the bill payment section you didn't enter it as a repeating payment, and if you did, just cancel the ...
Aganju's user avatar
  • 37.7k

Only top scored, non community-wiki answers of a minimum length are eligible