| We've all done it at least once - opened up our online | | | | If you have incurred overdraft fees within the past 30 |
| banking portal on the Web and spotted an overdraft | | | | days or so, here are some tips for how to get |
| fee on our statement. Whether it's $20, $30 or more, | | | | overdraft fees taken off: |
| an overdraft fee showing up on the online statement is | | | | 1. Know your facts. You need to start by digging into |
| never a welcome sight. | | | | the numbers a bit. In order to build a case that you can |
| An overdraft is charged anytime you make | | | | present to your bank, you will need to be able to show |
| transactions against your account in an amount that | | | | them exactly what happened. The most important |
| exceeds your current balance. Obviously, in order to | | | | data to gather from your online or paper statement |
| pay the merchant or individual to whom you authorized | | | | are: transaction amount and date of the charge(s) that |
| the payment via your debit card, credit card, or | | | | caused the overdraft, as well as any charges that |
| personal check, your bank needs to be able to | | | | happened at around the same time. |
| withdraw those funds from your account. When the | | | | 2. Arrange your facts into a story. Make sure you are |
| funds aren't there, they are not happy. | | | | able to articulately explain to your bank exactly what |
| If you are enrolled in an overdraft protection program - | | | | happened. Make it into a story, inserting the facts |
| and chances are good that you are - your bank will | | | | where needed. |
| pay on your behalf the merchant or individual to whom | | | | 3. It's time to call and explain your situation. Make sure |
| the payment was authorized. This is a bit like their | | | | to be polite to the customer service person. |
| giving you an automatic, short-term loan. Of course, | | | | Remember, unless there was a blatant error on the |
| their loan fee - the overdraft fee - is quite high. Most | | | | their part, the customer service person with whom you |
| large national banks now charge $30 or more for the | | | | speak likely believes you deserve to pay the overdraft |
| privilege of their covering your overdraft for a few | | | | fee. You need to present a calm, clear and fact-based |
| days. | | | | case as to why you shouldn't have to do so. Remain |
| Having to pay up to one overdraft fee per month | | | | friendly but firm during the entire call - losing your |
| might be bearable, but it is quite possible to incur | | | | temper, whining or being belligerent will get you |
| multiple overdraft charges in a single day. That is | | | | nowhere fast. Instead, calmly ask for a refund on the |
| because banks actually go to the trouble of stacking | | | | overdraft. |
| your transactions. Essentially, this means that they | | | | 4. If that doesn't work, pay an in-person visit to your |
| purposefully process the larger transactions before | | | | local branch or write a letter to the customer service |
| getting to the smaller ones. This decidedly sneaky | | | | address listed on their web site. Present the same |
| practice increases the bank's chances of collecting | | | | argument you did on the phone. This takes more time, |
| more overdraft fees from you, since they effectively | | | | though, so go with step #3 first. |
| use the larger transaction amount to break your | | | | Note that you would not have to pay overdraft fees |
| account into the red (negative balance) and then allow | | | | ever again if you switched your checking account to a |
| the other, smaller transactions to be processed along | | | | bank that allows overdrafts without charging a fee. |
| the way. | | | | Imagine how good that would feel! For more on this, |
| Don't blame the bankers: if you were a big banker, you | | | | check out: |
| would try to do the same thing. That's because about | | | | For now, get your facts together and build a case as |
| 75% of U.S. banks' account service-related fees | | | | to why you should be your overdraft fee refunded to |
| annually come from the charging of overdraft fees. | | | | you. In the meantime, consider taking the steps now to |
| Overdraft fees are just under a $30 billion business for | | | | switch to a bank that does not charge overdraft fees |
| banks in the United States. Why would you expect | | | | so that you can avoid this expense and hassle in the |
| them to walk away from all of that cash? | | | | future. |