Know anything about banks & overdrawing accounts?

a reply to: 3n19m470

Rule 1: never overdraft. you are giving your money away to the bank when you do that.
Rule 2: payday loans charge interest of about $20 for every $100 you borrow. If you are going to overdraft 160 or more....just get a payday loan and pay it all back on the next payday. You still save money.
Rule 3: what you call "overdraft", the bank calls an "unsecured loan". There are recent law changes that affect that, as well as what the banks auditors determine is a reasonable risk and process to handle that risk
Rule 4: never make your financial plan/budget hinge on being able to rig the system. Your plan needs to include only those monies you know you will earn, or that you have recieved authorization of credit for.


My input: im shocked they would allow you to overdraft anything, to be honest. If it happened in the past (before about a year ago) then it was likely an oversight on their part that has since been corrected.

Action steps:

- payday loans can give you short term cash, but it is incredibly expensive. I do not recommend them, or "auto title loans" (that is just giving your car away for pennies on the dollar, becuase you will never pay the loan off)
- there's always pawn....but again, itll cost you an arm and a leg to get your stuff back. And if its electronics, guaranteed you will bring cockroaches home with you (pawn shop electronics are the world best way to get infested with roaches)
- If you're young, you got hustle. When we were in our 20s, it was not uncommon that i'd need cash for some family need, and would go hustle up some yards to mow. Like my grandma always said, "When your broke, the only thing you got time for is work".
- Its weekend project time...surely there is someone out there willing to pay $80 for a days worth of work on a home project.

At my bank any electronic debits/auto payments will always go through even if you don't want them to. Found that out the hard way after making a less than a dollar error in my balance and getting hit with a bunch of fees.

But yeah, DEFINITELY spend only on necessities and put them in order of importance --roof over your head + utilities at least electricity/water (as long as you have a roof over your head you can handle anything), transport to work, food. I put food last because you can get by on one meal a day if you have to.

a reply to: KeliOnyx

I appreciate that you took the time to give your input. However, even though it's not my account in my name, choosing between the bank and a friend is an easy decision to make. Agreement or no agreement.

In fact, while I'm here, I do appreciate those who have tried to give me advice with the intention of looking out for my own future. There were some pretty cool comments here. On the other hand, I'm a little bit surprised at a few people who seem to stick up for the banks. I thought it was well established that banks and banking by usury in general were a bane of mankind. So who gives a damn if I help my roomate to break her agreement with the bank? To Hell with them, I say! We will pay their precious overdraft fees. And if they want to close a profitable account, then by all means, let them.

Anyway, thanks to all who replied. I appreciate all time taken to post in any of my threads. Whether positive or negative, all I ask is that you remain true to yourself.

a reply to: bigfatfurrytexan

Thank you for stopping by. I appreciate your input.

a reply to: msfitte

Yeah, I know all about eating one meal per day. I've kind of gotten used to it, so I just don't eat much as it is, whether I can afford to eat more or not. Thanks for stopping in!

Because banks will and can SUCK THE LIFE right out of you. Banks & bankers.....demon seeds from the farthest realms of hell. BB&T is my demon of choice.

a reply to: 3n19m470

Oh ok. Well it's Sunday, people are home wanting something done. Gutters cleaned etc. Have you thought about door knocking to solicit jobs? If that's at all allowed in your area. That's what my ex used to do to make quick money. Sure a lot of people say no, but there's always somebody needing something. Old people tend to keep cash around. People that only put half a bag or only one trash can on garbage day are alone and need help. Swing sets and kids toys in the yard are young parents with no money! Just a tip I learnt from another guy who was able to make cash any time he wanted.
Nobody said no to my ex or this guy mind you.

Well best of luck . I understand what it's like being broke but I can't really think of any banking ways except to learn better skills at managing money. Currently you guys are not doing this!

a reply to: 3n19m470

They are confusing, I agree, but with good reason. Individual bank rules vary, so contacting Chase isn't a bad idea, to just find out their own rules on the issue.

Generally speaking, overdrafts are a bad idea. Most banks will pay automatic withdrawals in order of largest first, so that house and car payments are not skipped, if the payments are going to place the balance into the negative. Yes, that can mean some smaller things that could have all cleared will each carry an OD charge, instead of not paying just the big one, or ringing it through last, so only it carries an OD charge. So, the bank claims to be "helping", but in reality, they pay it all then charge you more fees. If all they paid was the big stuff, that would make more sense. I have seen it done both ways.

Taking out cash would typically not be allowed f the account is in the negative. Checks deposited have different rules as well,t hat can vary depending on where the check is written, and the bank's own system. They might allow some to be immediately withdrawn, or they could require the entire check to clear first. Again, she needs to check with her bank to see what their rules state on this issue.

Personal loans aside, catching up is the best plan, and not gong into the hole every paycheck. It can be hard, I know, but those fees will make it harder and harder to get out of the negative. If she wrote a check that didn't pass, that would bring even more issues, and possibly even jail time, so writing the checks for cash over, knowing they could bounce, is a very bad idea.

I worked for a bank for a while, so I am familiar with some of the systems. She should note, too, that the average employee doesn't make the rules, and flat out cannot do certain things, so, assuming they are polite, give them some credit, and save the real complaining for the higher-ups. They have more leeway to help, anyway, and get paid enough to listen.

Arm yourself with a bucket, soap and a squeegee, knock on somebody's door and say we're in the neighbourhood washing windows, would you like your windows washed? Will do a really good job. Charge them a low rate so it's enough to give cash payment . $20 on five people us $100 easy cash. Or $25 each, whatever.

A ladder is needed for two story homes so pick the one story if you don't have a ladder. Do the job right away, none of this I'll come back bull#. A sunny day is good because that's when people are seeing the sun shine through in their dirty windows and believe me theyve been thinking about it and putting it off. Pick nice homes that want to look clean.

I get these window washers knocking all the time and I want it done! They are guys just like you looking for some quick easy cash.

Just an idea

a reply to: [post]3n19m470[/post]

as a former over draft collections employee for wells fargo, i got some answers for yuh, btw these questions have been discussed before here, always try searching it up,

also btw you can still use Craigslist just dont call the sword a weapon, call it art, or decorative, worse case scenario they remove the ad, big deal.


you should consider getting an account at wells fargo, if you have direct deposit they will allow you a payday loan to your account in the amount of the average of your past direct deposit, essentially letting you get your next paycheck early, as early as the same day as the last paycheck, and the cost is less then an overdraft fee, plus overdraft fees put bad marks against your account.

banks keep record and statistics of everything including how often and average amount you overdraft, they use all these details to weight you a risk level, think 1 to 100. better your score the more they will allow you to overdraft, worse your score and they might not let you overdraft at all. they just decline the charge, so your main question of how come its less now is your bank has changed the score on your account to one of higher risk based on your treatment of the account.

you mentioned the idea of depositing a check in the account in order to fool it into thinking it has more money to let you withdraw, if you are talking about a fake check that will ultimately bounce then this is check fraud and is a crime dont do it

you mentioned this happened before and the next day it suddenly allowed it again, this could mean a banker physically altered your score or physically approved a certain amount for that instance either because you called and brought it to their attention and they decided to cut you a break or it may have just been luck that the system was adjusting your score that day.

the only way i would think you might get some more over-drafted would be if you physically go into one of the banks branches and ask to speak to a personal banker, their one of those bankers that get their own little cubicle/office they have the most pull of anyone you'll get to speak to without pulling teeth. they can if they so choose physically overdraft your account pulling the money right out the drawer and hand it to you, if they deem you trustworthy of it. they get away with doing things that call center employees wouldn't dream of getting away with, i say that from experience.

banks can of course choose to shut your account down at any time if they think your just to high of a risk, typically that comes after something like check fraud, or frequent card loss or things like that. but remember, banks MUST NOT allow any account to ever be overdraft for more then 60 days, its a law. if your account is overdraft for 60 days the bank will charge off the account, which essentially closes the account and puts it in collections, the banks usually try their own effort at collecting on it up to and after that time, few months down the line if its still not paid off they often send the debt to a third party collections company.

you shouldnt overdraft so often, makes you look bad in the banks eyes, when you go to see a personal banker one of the things they will check is how often you overdraft, the more frequent the less likely they will want to help you out.

to a bank, an overdraft looks like a customer is unable to manage their finances, it doesnt look like the customer is doing it on purpose and doesnt mind the high fee's treating it like a loan,

if a loan is what your after and the banker doesnt help you out then try pay day advance/loan businesses, they are expensive but usually cheaper then overdraft fee's.

be careful my friend.
if you or your friend are put on check systems for passing a bad check or if the account gets closed while you are in the red you will not be able to get a bank account for a long time. im talking years.
might now sound like a big deal now and youre thinking to hell with them but in a year or 2 you might feel differently.

you should keep the ability to have a bank account.

a reply to: pryingopen3rdeye
Good advice but I'm under the impression he doesn't have a job, or a bank account for that matter, so what is he going to direct deposit and he most certainly cannot get a loan. He says he's got a start up business doing odd jobs for people like I had suggested but he's not really drumming up any leads.

OP If you say you're a trustworthy prrson who wants to pay a friend back, what about this room mate friend that would have needed paying back had she been successful at aquiring the $100 cash at the store the other day? So you borrow off one friend to pay back another?

Has it occurred to you that maybe she just told you that you she couldn't get it because she's sick of you needing it? Or maybe she is also your fiancé . Whatever if it's all true what you say, I'm sorry but it's not right you keep sponging off people. Just like banks they will shut it down soon enough. Her car payments being turned down will be the next thing the bank no longer lets slip through in the overdraft,then the car lot will bring a tow truck and sieze the car. Is this fair to her? If she got a car loan she must have had good credit at one point, I'm afraid to say she does not have that now and there will be no more car loans or anything.

I know I'm being harsh on you but you are digging yourself a hole and taking others down in with you. I suspect most reading this thread are agreeing with my words here.

a reply to: 3n19m470

i just reread this post and man did i miss a lot.
im trying very hard to be cool here but youre talking about trying to deposit a check in the atm to bring an account to positive so you can take money out??
youre talking about trying to sell a mini fridge and a sword??

do you not see a problem with this?

if you deposited anything in an atm today it probably wont be available till wednesday or so cause monday is not a business day. its a holiday.

are you seriously that strapped that you need to sell a samurai sword?

there is this thing called a job. you should try to get one

how it works is you do things for a company and in return, they give you money.
its a pretty good deal.

a reply to: violet

Thank you, I think I will add window washing to my list of things I can do. I just did some yard work yesterday and was able to at least make a payment on our personal loan so they were satisfied that we came up with something for now.

a reply to: pryingopen3rdeye

Thanks for the advice!

a reply to: violet

We both owe the money to our friend, not just me. I know she isn't lying about not being able to overdraw her account because I was there when she tried. I appreciate your input though.

Am I really reading this right, someone is using overdrafting as a way to account for their financial shortcomings?

a reply to: Mugly

I can't work a conventional "job". My fiances medical conditions require me to be nearby at all times. A few years ago she almost died but luckily I was there to call an ambulance. She was unconscious in the hospital for 11 days, she had to have emergency brain surgery, which did not permanently solve the problem. Ever since then, I stay nearby. Thanks though.

a reply to: opethPA

Oh yeah, buddy. It works! Usually. I never said it was the pinnacle of human wisdom. I just said it works, usually, if you really need some cash.

a reply to: 3n19m470

fair enough.
does she hang out with you when you wash windows, do yard work, or peddle your swords?

on a serious note, just be careful man.
seems like youre getting into bad financial habits.