Recession Survival Tips

Bank overdraft fees have been getting much attention in the media as of late.  Unfortunately, consumers have been unable to find a effective way to confront this racket.  Here are a few helpful ideas that will help you fight overdraft fees.

1.  If your social security funds are direct deposited, you are can try and use this against your bank.  Until recently, banks were absolutely not allowed to collect overdraft fees from social security deposits.  As of late, however, this has changed due to a California courts ruling on a Bank of America case.

2.  Threaten to sue in small claims court. If you feel you are entitled to an overdraft fee refund, you can threaten to sue in small claims court by writing a form letter, documenting the reasons for the suit , including the unfair practices of the bank, and explaining that you did not choose automatic withdrawal on overdraft fees.  Don’t waste time trying to negotiate, simply state your plans in your letter.  Financial institutions do not want to waste time in small claims court and will most often refund the fee as a result.  Here is an informative and helpful case of people fighting overdraft fees.

3.  If your overdraft fees are less than $100, go to a competitive bank and offer to move your account for the equivalent of the fees.  Many financial institutions today offer cash for a new account and would love to have your business.  I know it is inconvenient to change accounts and the new bank may only give you the money over several months, but with branches on every corner, this is one of the best and quickest ways to get your money back in your pocket.

4.  If you have never entered into overdraft before, many banks will refund the fees.  You will want to call and write a letter stating your cause.

5.  Negotiate a refund with the bank if the above tips don’t work for you. Use your customer loyalty, your banking history, relationships you have with bank staff, and reasons why you may have to take the issue to small claims court.  Here are other excellent tips getting bank overdraft fees refunded.

I am available to help you obtain an overdraft fee refund and answer any questions you may have.  Remember, it may be unfair that you were charged overdraft fees, but avoiding fees while getting great service in the future is important.

Tim Smith was a former partner at a nation wide public accounting firm working with banks, as well as the former president of a leading bank consulting firm, and is currently CEO of Probity Financial Services.