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What happens with an overdrawn checking account?

Date: Thu, 11/30/2006 - 06:11

Submitted by jeffc762
on Thu, 11/30/2006 - 06:11

Posts: 21 Credits: [Donate]

Total Replies: 35


My checking account closed in May because it was overdrawn and I couldnt put the money back in right away. The collections department sent a letter and we made arrangements to pay $100 every two weeks. That turned out to be too much, but they wont set up any other type of arrangement. If I let this go too much longer will they send it to a third party collection agency or will they sue me? I'm in Missouri, and the bank is Commerce bank


I think in some ways you have answered you question. It very well may depend on the amount the account is behind how they handle it. If could be dealt with in a few ways. If the amount is not very high they are more likely to send it to a collections agency. If it is high they might file a suit to try and garnish your wages. You also want to consider some of your state laws.. depending on the circumstances and how it happened you might want to be sure they are not going to attempt to accuse you of Check fraud or Check deception. I am not trying to scare you or anything but I want you to be aware of all the things that are out there. It is more likely that when their collections department has had enough of it they will farm it out or sell it for a reduced amount to another collections agency and then they will attempt to collect the debt from you. Try and send them something. even thought he amount is too much try to send the some money every two weeks to pay it back. Should it ever come to a court issue you can show that even though you have not been paying the amount you have been making an effort to pay it down the best you could. This might also keep them from pursuing any other options and they will keep it internally.

Kyle


lrhall41

Submitted by kledford on Thu, 11/30/2006 - 06:42

( Posts: 11 | Credits: )


Banks are very quick at reporting overdrawn accounts to Chexsystems, which will stay on file for 5 years, and it will stop you from opening a new account elsewhere. Pay something on it as often as you can so they will see you are trying to take care of the situation and not avoiding it, and they may not report you to Chexsystems.


lrhall41

Submitted by brownsugar on Mon, 12/04/2006 - 17:26

( Posts: 1389 | Credits: )


Here is some info I found about Chexsystems:

Quote:

National Check Fraud Center
ChexSystems Information and Guide

What is ChexSystems?
ChexSystems provides deposit account verification services to its financial institution members to aid them in identifying account applicants who may have a history of account mishandling (for example, people whose accounts were overdrawn and then closed by them or by their bank). ChexSystems is also licensed to do business as ChexSystems Collection Agency providing debt collection services to members participating in this service.


Is ChexSystems a credit bureau?
ChexSystems is a consumer-reporting agency governed by the Fair Credit Reporting Act (FCRA) and other laws. ChexSystems Collection Agency is a debt collector subject to the Fair Debt Collection Practices Act (fdcpa) and other laws. The Federal Trade Commission enforces the FCRA and FDCPA.


How long does the report stay on file?
How do I get it deleted?
Each report submitted to ChexSystems remains on our files for five years, unless the bank or credit union that filed the report requests its removal or ChexSystems becomes obligated to remove it under applicable law. The decision to delete a report is entirely up to each bank or credit union and its individual policies.


I paid the bank. Why wasn't the report removed?
A reporting member is under no obligation to remove an accurate report of account mishandling due to payment of monies owed. However, if a collection amount is reported, the member is obligated to mark the account as paid.


How can I see what is in my file?
You can order a copy of your report from ChexSystems.


How do I dispute information?
ChexSystems Consumer Relations Department helps people who believe their file contains misinformation. Visit disputes for more information.


Why do I have to give you personal information, like my social security number and drivers license number?
ChexSystems ask for this information to ensure that they make a complete and accurate search and are able to identify all information that may pertain to you.


Why did you tell the bank not to open an account for me?
ChexSystems neither approves nor declines accounts for banks and credit unions. The decision is entirely up to them.


Why wasn't my ChexSystems report removed when I filed bankruptcy?
A bankruptcy filing only affects the collection of outstanding debts. It does not require the removal of accurate factual information concerning your account.


Why can't I get a copy of my spouse's report?
ChexSystems is required by law to deal directly with the individual to whom the information pertains. They strictly adhere to this to protect consumer privacy. To discuss the information with anyone else, ChexSystems must receive a notarized Power of Attorney or specific written instructions, signed by the consumer whose information is being requested, authorizing ChexSystems to disclose the information to the person named in the Power of Attorney.


What does NSF activity mean?
NSF ???? or non-sufficient funds ???? activity refers to overdrafts that occur on an account.


Do I pay ChexSystems or the bank?
It depends. If your report contains a record of an outstanding debt and you have received collection notices from ChexSystems Collection Agency, you pay ChexSystems Collection Agency directly by sending your check or money order to:


ChexSystems
Attn: Consumer Relations
7805 Hudson Road, Suite 100.
Woodbury, MN 55125
In other cases, you pay the bank or credit union directly.


How do I add a statement to my file?
You are entitled to add a brief statement to your consumer file describing the nature of your dispute of the information. If you wish to add a statement to your file, you must submit your statement in writing with a clear indication that you wish the statement to be added to your file, ensuring that you sign the request. If you would like assistance in writing a clear summary of your statement, you may contact ChexSystems or obtain the assistance from your Attorney.


How do I contact ChexSystems?
CALL
ChexSystems
Consumer Relations
1-800-428-9623
(Recording only-Instructions)

WRITE
ChexSystems
Attn: Consumer Relations
7805 Hudson Road, Suite 100.
Woodbury, MN 55125
FAX
602-659-2197

Inquiry about negative information on file:
Information you will have to send if you have been rejected by a bank or you have received notification that there is negative information on file that shows you still owe a bank money.

Either send your request in writing or by fax. Make sure you have available the following information to submit to them:


your full name and any alias names used
your current and prior address (5 years)
your social security number
your driver license and/or ID card number
any business you signed on during the pass 5 years.
We hope that you can resolve your personal problem. If we can assist you further, please contact this office by phone, e-mail, or in writing.

Order your own PERSONAL CONSUMER REPORT from ChexSystems.



--------------------------------------------------------------------------------


lrhall41

Submitted by brownsugar on Mon, 12/04/2006 - 17:52

( Posts: 1389 | Credits: )


My account is overdrawn by 1100 dollars with bank of america and it will finaly close on 12/8. The bank told me it will go to collections and to checksystems. Once paid in full i can get a letter from check systems and take it to the branch manager at boa and if they accept then they will open another account for me. But my negative fees were accumalated b/c the bank wouldnt help me. So i doubt once its paid off and i get a letter from check systems i will not be going back to boa


lrhall41

Submitted by traci78 on Mon, 12/04/2006 - 18:07

( Posts: 106 | Credits: )


They will say anything to get you to pay. If you continue to send something, they have to keep it. They don't want to because the larger the amount you pay, more money a collector will make but they will not reroute or deny your payments. And as long as you send something (at least 50.00) it will not go on your credit and you will slowly walk it down


lrhall41

Submitted by BEAUTY1217 on Tue, 12/05/2006 - 11:26

( Posts: 281 | Credits: )


I currently have a overdrawn acct with BOA and I am sending them $25.00 a month. No matter what you send them, they will apply it to your acct. I would just send what you can and when you call to see if they got it, just ask to speak with a manager and ask if you can send the same pmt every month. Even if you send $20.00, it will be better than nothing, and will show that you are attempting to pay them back.
If you don't mind me asking, what bank is the acct with??


lrhall41

Submitted by on Tue, 12/05/2006 - 12:28

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Commerce will refer it out to a collections Attorney. If they can collect, depending on how large the debt, they will pursue legal action to collect.

Continue making what ever payments you can ( they don't have to accept your arrangement, but they DO have to accept and post your payments). By continuing to pay what you can it will make their case harder to prove, and the court (if it goes that far) will be more likely to order them to work something out with you.


lrhall41

Submitted by LCW on Wed, 12/06/2006 - 12:18

( Posts: 1151 | Credits: )


I called Bank of America the other day since my acct is overdrawn 1100 dollars and tried to explain to them i am currently unemployed and can only afford $30 every other week and if i can send more i would. They told me that was not acceptable because the amount owed is to high. I don't what to do know because thats what i know i can afford without missing a payment. The only good thing that came out of it was they told me they don't file and criminal charges against you for a having the high negative balance.


lrhall41

Submitted by traci78 on Wed, 12/06/2006 - 13:04

( Posts: 106 | Credits: )


A bank in my area advertises that they will let you open a savings account if you are on Chexsystems and then once you establish a good history with them you can open a savings account. If your account is $1000 overdrawn and checking account may not be a good choice. The overdraft charges can sure add up quickly and just keep you in a vicious cycle. Good luck.


lrhall41

Submitted by on Wed, 12/06/2006 - 13:28

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Traci, Hopefully you might be able to get it in there before 30 days. Kyside38


lrhall41

Submitted by KYSIDE38 on Wed, 12/06/2006 - 16:31

( Posts: 2477 | Credits: )


Yes I owe boa 3250 and they sent it to an attorny that sent me a letter I called them and they said that they want me to pay 270 a month the economy is bad I took a big pay cut then they were talkin about garnishment to my check can they do that? I want to pay it off but not making 7.75 working 30 hrs a week with other bills as well I told them I can send what I can but they said no we want 270 it all happen because someone gave me a fraud check and told me it was for a mystery shoppers job and me with no money cashed it at the bank and it went through but came back 2 days later the people with the fake job changed the number and I was left to pay it I hope they don't think I was a part of fake checks cause if I was I would not pay something on it I jus don't know what to do if I pay something on it every two weeks can they still garnish my wages


lrhall41

Submitted by on Thu, 03/19/2009 - 21:39

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What's weird is im going on 23 and I banked with boa since I was 16 and nothing like this ever happend I was a victim of fraud but I kno they don't care about that all I wanna kno is will they garnish my check but in my heart iam gonna send what I can every two weeks will they still garnish me


lrhall41

Submitted by on Thu, 03/19/2009 - 21:46

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Citizens Bank Sucks. I am on a fixed income and sometimes my balance goes down to $15.....they suddenly charge me for 15.05 in fees and my checking account goes over a nickle. Then they charge a 39.00 fee on it.

I am switching banks cause this happens o a lot of people.


lrhall41

Submitted by on Thu, 03/19/2009 - 23:25

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i opened an account with chase bank and i cashed a couple of checks there obviously but did not know that they were fraud! the first one went through and the 2nd one they caught and did not cash it !they kept it and said they were giving it to the fraud department then i just noticed my account is overdrawn 1030.00 from the first check! so my question is what will happen to me? meaning are they gonna send a detective to my home ?am i going to jail? and i obviously know i will have to pay it back but like i said just want to know the other things i may be facing??


lrhall41

Submitted by on Sat, 03/28/2009 - 09:24

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They would have to prove YOU were the one defrauding them. That would be kind of hard to do if these checks were made out to you and you put them in your bank. However, you should let them know that you are 100% willing to cooperate in the fraud investigation. Think on it this way, the bank was not the only one defrauded...you were too when someone gave you the fraudulent checks. How can you know the checks were bad?

Now on to the ones who are having a hard time paying the banks. These are hard times and some people barely squeak by..I know, I am one of them! Send the bank a certified letter with your next payment (that you can afford) make sure the payment is the kind that can be tracked, so you have proof of these payments. Explain your situation and even include a paystub (redact any sensitive information) and list your current bills. Explain in this letter that you want to honor your obligation but as they can see, you simply do not have the means to pay them what they are asking for.

Stick to this! Even if they sue you, you can show that letter to the judge (and take all your financial info to court) to show where your finances are at and the judge will have you work something out with them....good chance that the judge will even order the same payment rate.

If that is all you are able to honestly do, then do what you can and use the certified letter to prove you were trying desperately to honor your debt. It would make the bank look unreasonable...the judge is a human..they will see that.


lrhall41

Submitted by goldenbast on Sun, 03/29/2009 - 00:31

( Posts: 2884 | Credits: )


If you get a check in the mail, and just don't know what it is, DON'T cash it!! I know that advice is a bit too late, PLEASEHELP,...but, now you know. I get checks, like that, in the mail, stating 'here is some grant money from xxxxx business.' I NEVER cash them. If oyr bank was a 'good' bank, they should have understood the circumstances and go for the people that SENT you the check, NOT YOU.


lrhall41

Submitted by sdchargers_63 on Sun, 03/29/2009 - 03:21

( Posts: 1798 | Credits: )


What if your account was switched without your knowledge or consent, to a different type of account that generated a "product transfer fee" that put you OD and now your just decide to abandon the account because no one will handle your dispute? I'm out on medical leave and my workman's comp case is being stalled without approval or denial disabling me from returning to work.
The product transfer fee was a result of my being out of work and not making direct deposits because I'm not receiving a paycheck. These are circumstances out of my control and NAtional City will not compromise or return a call. Every time you ask to speak to the manager, they're not in or they are busy elsewhere. Yet, they are the only one's who can override a fee.


lrhall41

Submitted by on Mon, 04/27/2009 - 20:40

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im in the same boat!!!! i got mixed up with online pay day loans and now have my checking account over drawn $406.00. im in a state of panic not knowing whats going to happen and worried i will end up in jail!!!! what is the procedure the bank takes before they get a warrant for my arrest??? im with city national bank in kentucky (which is commonwealth state) not good im sure. im having anxiet attacks im so worried.


lrhall41

Submitted by on Thu, 03/31/2011 - 19:34

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