Can my bank pay2 items from my checking accountif there were no available funds to cover the payments and then charge NSF fees?

UPDATED: Jan 26, 2011

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Can my bank pay2 items from my checking accountif there were no available funds to cover the payments and then charge NSF fees?

Account has since been turned over for collection. Just want to know if the bank is in the right.

Asked on January 26, 2011 under Bankruptcy Law, West Virginia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Look at your agreement(s) and terms of service with the bank. If your account had overdraft protection, which many do (you may have it even if you don't recall specifically signing up for it--that's why you need to check the terms), then yes, the bank may pay out the amounts when there were no available funds and then charge you NSF fees. If there was no overdraft protection (which may have gone by another name, btw), then if there was insufficient funds, the bank should have refused payment from your account. Of course, that could have resulted in owing bad check charges or the equivalent from the persons or businesses trying to collect and incurring other liability, so it may not have been an improvement over the situation in which you find yourself.

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