| Overdraft charges are a relatively modern | | | | 3-4 charges can add up to a $100 in fees. |
| phenomenon. Rewind to about a decade ago before | | | | Banks, of course, are interested in maintaining the |
| the advent of overdraft protection programs. At that | | | | status quo as far as overdraft fees are concerned. |
| time, banks did not charge overdraft fees. Instead, if | | | | That's because these charges bring in about $30 billion |
| you wrote a check that was too big, it would just | | | | per year in the United States alone. So, these |
| bounce. Sure, you would be charged a bounced check | | | | programs are less a matter of customer "protection" |
| fee (which admittedly could be quite high) but you didn't | | | | (as the name implies) but rather are clearly all about |
| have the frequency of overdraft fees that so many | | | | bolstering bank profits. |
| people see today showing up on their checking | | | | If you are looking for how to get a refund on an |
| account statements | | | | overdraft charge, it won't be easy. But, banks are |
| Notably, it is not just the overdraft protection programs | | | | more likely to refund your overdraft charges if you: |
| themselves that cause the problems we have with | | | | 1. are able to present a rational case for why you do |
| overdraft fees today: it is the combination of debit | | | | not deserve the pay the charges. |
| cards and overdraft protection programs that is the | | | | 2. call them rather than e-mail them to dispute the |
| culprit in our collective overdraft problems. Like | | | | charge. |
| overdraft programs, debit cards are a relatively-recent | | | | 3. remain polite and calm while on the phone. While you |
| invention by the banking industry. | | | | are no doubt upset about the situation given the fees |
| The reason why:debit card + overdraft protection | | | | you are being asked to pay, remember that this |
| program enrollment = deadly combination for bank | | | | person, too, just wants to get through their day and go |
| customers | | | | home. They will be reasonable if you treat them as |
| Ais that when you have both through your checking | | | | such. |
| account, your bank will actually allow you to make a | | | | 4. Be ready to relate important info like the date and |
| charge at a store, gas station or other merchant even | | | | amount of the transaction in question. |
| if your bank account balance is too low to support the | | | | 5. If the phone call does not work as you had hoped, |
| charge at that time. In other words, instead of denying | | | | ask for an address where you can send in a complaint |
| the debit charge, your bank will honor it - and then | | | | via written letter. Remember, avoid e-mails: they are |
| charge you a fee for doing so. And, these fees can | | | | not taken as seriously. Take the time to write a letter |
| range from $25 to $35 per overdraft in the case of | | | | and you will have a better chance of success. |
| many national banks. | | | | The best alternative to spending your valuable time |
| Even particularly responsible bank customers who | | | | fighting your bank on overdraft charges is to switch |
| carefully keep an eye on their purchases and check | | | | banks. Few but a growing number banks now offer |
| their account balances regularly can run into problems. | | | | overdraft-fee-free checking, meaning they will not |
| It's likely that you have had at least one overdraft | | | | charge you an overdraft fee - even if you overdraw |
| charge in your lifetime. In fact, you may have had | | | | your account. |
| multiple charges within the last month alone! And, just | | | | |