This is where overdraft fees play a part. For loans, you pay interest, for overdrafts you pay a fee. For every article that you purchase over your regular balance, the banks charge a fee which is called an overdraft fee. Bank of America charges $35 per article.
What all is included in an overdraft fee?
The overdraft fees would include overdraft article fees, overdraft protection fees, and non-sufficient funds in Bank of America.
Overdraft article fee is charged when the amount of your withdrawal is more than the balance in the account and Bank of America decides to not cancel the transaction but pays for it on your behalf. After the day’s processing is completed and the account shows an insufficient balance with the overdrawn amount, you will be charged an overdraft fee of $35 for every article above $1. Overdraft protection transfer fee is a service provided by Bank of America to save some of the overdraft fees. When you maintain more than one account with Bank of America and you make an overdraft payment from one, then Bank of America would transfer the balance from the other eligible linked account and will not apply the fee to any article which costs below $1. If Bank of America refuses to pay for an article or returns an article, then you would be charged a non-sufficient fund fee for each article above $1 returned in case of not enough balance in your account.
Is overdraft fees refundable?
By default, overdraft fees are not refundable.
However, there are exceptions to this too:
Faulty overdraft chargesA mistake on the customer’s partThe bank’s algorithm has calculated that you are a trustworthy customer
However, if you fall into any of the above scenarios, it does not automatically guarantee that you would be eligible for a refund. The discretion still lies with Bank of America and it decides to refund on a case-to-case basis.
How to apply for a refund?
Whether you fall into the above three situations or not, it never hurts to try to get a refund. As a thumb rule, you do not get a refund on overdraft fees. However, Bank of America gives preference to their long-time account holders which increases their chances of getting a refund.
If you think that you are wrongly charged or there has been a mistake from the bank’s side then follow these steps:
Contact the bank by phone: Always the first step to inquiring about anything related to the bank is to call their customer service. On-call with their customer service executive, state your account number and the purpose of the call. Talk in a very polite and rational manner, you don’t have to blame the person on the other side of the call for this. Overdrafts are calculated by systems and the person on the call is at no fault. Request a refund in person: Schedule an appointment to meet a bank representative and explain to them the reasons for the overdraft. You can request a refund, maybe it was your first-time overdraft, explain your situation to the representation. Write a letter to the bank: Write a letter to the bank as proof of written communication in case the above two methods do not give you any result. Send the bank an email: Nowadays, nobody writes a letter these days. So write an email to the bank. Keep the tone polite and explain your situation properly.
Some tips on securing a refund
Being rude would never get you a refund even if you had a slim chance. Here are some tips to use the next time you ask for that refund:
Being polite will always work to your benefit but don’t give up too soon. Your entire situation should be explained to the bank’s agent in as much detail as you can. It is always a good idea to let the bank that you were always happy with their services up until that point. If the fault payment was because of an error on your part, then admit it. If you want a favor from the bank then pay all the outstanding balances including the fee before you request the refund. Always be sure to provide your account number, the time and date of the transaction, your address, and your identification number.
If it was a system error, you have a higher probability to get the refund though there is no sure way to know about it. Also, every bank wants to retain their customers, so if you are a long-time loyal customer and it was an honest mistake, they might issue you a refund.
How else to avoid an overdraft fee?
By changing the preferences in your account to not allow any overdraft of funds in case of insufficient funds. Or, you can sign up for an optional service called Overdraft Protection.
What is the new rate of overdraft fees?
Bank of America had decided to reduce its overdraft fees from $35 to $10 in January 2022.
Does every bank charge an overdraft fee?
Most popular financial institutions charge overdraft charges.
