Debt Collection, Garnishment, Repossession

questions & answers

Question: Isn't it illegal for a bank to charge a recurring fee for an overdraft? I am now facing court and legal fees if I am not able to pay the collection agency a lump sum of money or $100 payments toward the full debt with interest accumulating at 18% every day. Is this legal?

Answer: Overdraft fees are legal. It is essential to pay off the overdraft and fees right away so that additional fees are not tacked on. This can be very expensive very quickly. Beginning July 1, 2010, a new rule governs overdraft fees. The new rule will require that customers agree to have their overdrafts covered before the fees can be levied. Otherwise, purchases for more than a customer has in an account will be denied.

QUESTIONS

  • Isn't it illegal for a bank to charge a recurring fee for an overdraft? I am now facing court and legal fees if I am not able to pay the collection agency a lump sum of money or $100 payments toward the full debt with interest accumulating at 18% every day. Is this legal?

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