Consumer Blog

What happens if I refuse to pay overdraft fees?

Missouri consumer writes:

If I choose to close the account instead of depositing money to cover a bank overdraft charge (and/or overdraft amounts) what will the bank do? Will this affect your credit report? Can the bank take legal action?

Your first step should always be to contact the bank and try to get the charges removed.

Now, I'll answer your questions in reverse. Yes, as with any unpaid debt before the statute of limitations, the bank has the right to sue. As for the credit report, the bank is not likely to report you to the credit bureaus.

Instead, the bank will probably report you to TeleCheck or ChexSystems, which keep databases on customers with negative banking history like bouncing checks, overdrawn accounts, etc. Here's more info on that, along with instructions on checking your on banking history file with those companies.

Technorati Tags: banking consumer report, finance, overdraft fee, shopping and spending, bank, moagoconsumer, consumer protection

Posted by Travis on July 2, 2008 8:00 am :: Comments (4) :: Permalink

4 Responses to "What happens if I refuse to pay overdraft fees?"

Shereese says:

July 15, 2008 11:09 am

Does sending a debt validation letter after recieving a summons to court for a debt stop or prolong the lawsuit against you?

Denotes the author of this comment is employed by the Attorney General's Office

Travis says:

July 16, 2008 4:39 pm

To Shereese:

Normally a consumer sends a debt validation letter after being initially contacted by a collected. If you are being sued, it's unlikely that's your first contact. And if indeed you are being sued, you need advice from a lawyer.

Kristina says:

July 17, 2008 10:58 am

What should a person do when you are disable and depend on an electric wheelchair to get around and your chair breaks down but you are unable to get the company you went through to purhase it to come and fix it and they will not return your calls and no other company will fix it because you did not buy it from them???