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This does seem like a nightmare scenario for the vast majority (4 in 5?) of Americans who live cheque-to-cheque.

Your pay is yanked, life doesn't stop and the bills keep coming. A few days, a week later, it's corrected and the pay reappears. Who's on the hook for your overdraft fees?




Overdraft fees: depends on your bank’s policies. Many low sophistication bank users will eat fees in this case and not attempt to get them reversed or not successfully convince T1/T2 CSRs to push the button for them.

Words which are close to magic here: “The bank assessed this fee incident to an overdraft caused by an EFT which was subsequently reversed under Regulation E. Will the bank waive this fee for me?” (If you are less in a Dangerous Professional mood or don’t have a hobby interest in banking regulation, my next best suggestion is “Can the bank waive this fee since I’m a good customer?” hear no “I would be disappointed if we can’t fix this, because I have been a loyal customer for years. What can we do here?”


More than that. They didn't get paid and instead they got a WITHDRAWAL against their account for their paycheck, twice.

Not only did they not get paid, they got the equivalent amount of their paycheck stolen from them twice over. The larcenous criminals should be the ones to pay back the overdraft fees that were the direct result of their larceny of 4 figure dollar amounts stolen from their accounts.


What is an overdraft fee? How much is it? Is it interest?


This is a flat fee assessed if your account goes into "overdraft" to cover a check (or other liability). If your account is set up to do this (pretty standard in the US) rather than a check failing to clear your bank will cover the check and charge, e.g. $30-$50 for covering it. Of course you owe the overdraft amount as well.


I also think it's mostly meant to be a deterrent. When I had BofA, any time I got overdraft I just called and they would take it off, usually without an explanation.


That's true, but as in other areas I think it probably has a lot to do with how much they value your future business.


Overdrafting is when the balance goes below 0. Policies vary by bank, but generally it's a $25~$50 (could be more or less) for _each_ transaction the bank processes while your account has a negative balance.

So looking at this case, let's say you have to go 7 days until this issue is resolved and the employees are given their paychecks. If they got automatic payments they could find that itunes, spotify, bills, etc, automatically charge them during that period. EACH charge might be 45$. Say 5 services do it, boom over 200$ in the hole in fees alone.

(If you're ever in the situation listen to the other comments about how to approach the bank about reversing over-draft fees)




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