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Stopping Direct Deposit on Overdrawn Account

Date: Wed, 02/18/2009 - 19:05

Submitted by anonymous
on Wed, 02/18/2009 - 19:05

Posts: 202330 Credits: [Donate]

Total Replies: 7


We were expecting a check to be direct deposited and it was not, which caused our account to overdraw by approx. $2300. I spoke with the bank about payment arrangements and they offered a see if we could do a "Fresh Start" loan, or another type of loan for about 12 months.

We really just want to pay off the full amount within 30-60 days and be done with it. Both of our paychecks are direct deposited. If we change the direct deposit to our account at a different bank, approx. how long do we have to bring the account positive? We don't want this acccount to be closed and/or reported and plan to pay this amount over the next 2-3 pay periods, which will put it being paid no later than the end of March. Is it OK to stop a direct deposit on a negative account so that our entire checks are not eaten by the overdraft and as long as we are paying in large chunks do you think we will be OK? We have never had an overdraft go past a day or two, but this missing deposit has messed us up.

I know the bank can probably answer this for sure, but I don't really want to give them a heads up before we do this. BTW-when I spoke with the Vice President today, she hinted that as long as our checks were direct deposited they would be applied to the overdraft, which led me to think she might have been trying to suggest we change them.

Thanks!


It really depends on the bank. I have gone overdrawn a LOT but my credit union gives me 30 days to pay with no added fees. I also have overdraft protection so that may have something to do with the 30 day span.

My son had an account at a bank that not only charged him $35 for the NSF but an additional $35 every week it was negative as a service charge which was outragous.

The bank will apply any deposits to the overdraft so I would suggest you open a new account and change the direct deposit information and do it fast. It can take a couple days to weeks to do that depending on your payroll department.

If you happen to have the original paperwork from when you opened the account you can check if there are any statements about overdraft rules or you may be able to check online at their website.

Do you mind telling us which bank it is?


lrhall41

Submitted by nohiogal on Thu, 02/19/2009 - 02:36

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The bank is a local bank in Middle Tennessee that only has locations in two or three surrounding counties. I did open a new account at another bank today and was able to change both of our direct deposits as well as all of our direct debits that are upcoming.

They do charge a $5 a day fee after 5 days overdrawn, which is ridiculous, but better than having to lose most of our paychecks at once. When we are paid, I plan to make a large deposit (1/3 of the balance due) and then 1/3 for the next two pay periods unless we are able to pay if off sooner.

As far as stopping the direct deposit, unless I tell them, they won't even know this until the end of the month when they don't hit, but I think I will call the VP on Monday and make her aware of when we will be paying so it doesn't look like we are trying to skip out on payment. She assured me the account would not be closed right away, but I'm not sure what that means. I think I might call another branch anonymously tomorrow and see what I can find out.

Probably a stupid question, but there isn't any reason we can't stop a direct deposit on an overdrawn account-right?

Thanks!


lrhall41

Submitted by on Thu, 02/19/2009 - 17:08

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you most certainly can stop direct deposit.that is between you and your employer. not the bank.


lrhall41

Submitted by paulmergel on Thu, 02/19/2009 - 18:26

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