Is it illegal to overdraw your bank account? What happens if you don't pay it or close that acct?

Question

Is it illegal to overdraw your bank account? What happens if you don't pay it or close that acct?

Answer 1

No it is not illegal, but if you do not pay it within 3 days, some banks have longer times, then they will close your account and send you a bill, and then if you don't pay that, a collection's notice.  

Answer 2

The bank will charge you an overdraft fee like 27 dollars then add 5 bucks a day. I would just get this cleared and done with before it cost you more money and more pain... Your not the only one..

Answer 3

It's not illegal to overdraw your account although it is illegal to bounce a check and not make good.  If you overdraw and don't pay it back, you will not be able to open a bank account anywhere until you pay the money back.

Answer 4

In order for you to have overdrawn your account, you must have written a cheque. Your bank honoured the payment on your behalf, because they did not wish you to be embarrassed by the cheque being bounced. You should honour that facility provided by the bank and repay the amount. If you did what you suggested you still have a legal obligation to repay this amount to the bank. They can take legal action to recover the debt plus their legal fees and it will cost you more in the end. Your credit record would also be noted with this default.

Answer 5

If you have overdraft protection, it's like a credit card connected to your bank account. If you don't have the protection, it's completely up to the bank in terms of fees, whether they pay the charge/check, etc, etc.

Answer 6

you should get overdraft protection

no its not illegal but they will charge you overdraft fees

and they will prob try debt collection or garnish your check if they go through the law.

Answer 7

i think the goverment will atomoticaly take the money from you and will put it on your credit

Answer 8

you get an extra fee for overdraw.. its like $50 here in australia.. its not illegal it happens from time to time....

Answer 9

You will hear from a lot of Bill collectors

Answer 10

Its kinda illegal, because there is no official law against, but its still stealing..It will just go on your credit report...

Answer 11

A bank account is a contract between you and the bank. There will be provisions within that contract regarding overdrafts - charges, maximun amounts, interest rates on overdrawn balances etc. If you are worried, talk to the bank.

Answer 12

the bank will close your account automatically.  then they'll send you a bill.  not paying is not a crime, don't worry. or you can pay for it?