Overdraft Fees...how many times can you be charged?

Question

Is there a limit to the number of times a bank can charge you with the overlimit fee each day? Seems like they tend to let bigger transactions go through before the balance goes negative, and then let the multiple smaller transactions go through after it is already negative so they can hit you with more fees rather than letting the little ones go through before being negative creating less fees. You would think they would let things go through in the order they are processed...but that is not the case. I just wonder if there is some time of regulation or something out there limiting the number of fees they can hit you with in one day.

Answer 1

They can charge as many times as you overdraw.

You can get overdraft protection......I believe all banks and credit unions offer it.

I think that they draw in the order that the transaction come in.

Answer 2

I doubt it. If you write a check with insufficient funds, and the bank covers it then you basically have to eat anything that they charge.

Just don't write checks if you don't have the money. I know that this can be a "convenience" for some people but you will never be caught. I have been poor, believe me and never once bounced a check. I just won't do it.

Please try to take the stance," If I don't have the money, I don't need it". I feel badly when I hear this as one of my family members lived this way.

This is not a lecture, just trying to help.

Answer 3

they can charge for every transaction once, basically if you buy 5 things and all of them over drew your account it will cost you 5 fees. BOFA is really bad at this, even recently changing thier posting funds policy quietly to sucker more 35.00 overdraft fees from people. The regulation is with your bank, and i suggest reading every bit of fine print... this is money your dealing with, it is best to be compleatly educated.

Answer 4

Nope they can and will charge you for every check that you write that aren’t covered by cash in your account. Yes most banks put the bigger check go through first, it’s one way to make money.

In fact you could be charged multiply times for the SAME check. If your bank sends your check back, and the other bank sends it through again and your bank charges you for the same check again. I haven’t had a bad check since I took over the check book from my wife, long story. Before I was married I NEVER had a bad check. I did without.

Answer 5

That's exactly what they do. That's how they make money, by penalizing the irresponsible. That's what overdraft protection is for, if you don't want to pay it, all you have to do is watch your account & make sure you have the money before writing checks. Simple, isn't it?

Answer 6

Yeah I bet you're on to something when you say that they let the large transactions go through first. Because when I check my online banking statement, the transactions are NOT in order! Unfortunately I think they have the right to charge you EACH TIME you go over. I got charged twice in one day. Once for a 10 dollar purchase at panera, the other time I bought 20 dollars worth of gas. That brough my balance to negative 70 dollars =/