Is it illegal to overdraft your bank account?

Question

Please help me end this argument! Okay so my husband and I have been arguing about this for the past couple of days... we are having car issues and our overdraft limit is 500. If we over draft and cant pay it back right away, is that illegal? His family has told him it is and Im like um no, then why would they even let anyone over draft ?😂😂 i mean maybe im wrong ....

Accepted Answer

It’s not illegal but they can hit you with a shit ton of fees.

Answer

I work at a bank. it's not illegal. however the bank will charge overdraft fees and can continue to charge fees while the account is overdrawn. If the account isn't brought current within a certain time frame, they will close the account and they will attempt to collect from you. It can ding your credit and prevent you from opening an account at another bank.

Answer

maybe not illegal but it's definitely stupid,they will charge you out the ears.

Answer

It’s not illegal but really stupid. If you need money get a loan. Don’t overdraft your bank

Answer

It's happened to me a couple of times and I'm not in jail. Lol

Answer

Not illegal but it’s dumb as hell lol. Don’t do it!!

Answer

its not illegal at all.   the overdraft fee and any amount 'overdrafted' will just continue to be owed until it is paid off. any money  you put into the bank will just go towards getting you back to $0....its not illegal..if it was, there would be millions of people in jail on a daily basis.

Answer

you will get hit with a bunch of fees. it's not illegal, but it's a terrible thing to do to yourself.

Answer

It all depends on the rules at your bank. I’m a teller and I can tell you this: the first bank I worked at, they gave you seven days to get your account into the positive and then they would start charging you fees. Then, I worked at a Credit Union, and they gave you 45 days to get it positive, just like the current bank I work at.
Remember this: your limit may be five hundred, but that includes fees. You are charged between $30 and $33 for each debut that comes through your account. So, if you swipe your card at the gas station and you go negative, that’s a fee. Say you then swipe your card to get coffee, that’s another fee.
So what I’m saying is, make sure you only swipe your card once to use your overdraft and you will only be charged one fee.
Good luck!

Answer

Definitely not illegal lol, that’s why they have an overdraft limit and fees.

Is it illegal to overdraft your bank account?

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