Overdrafts and negative balances: What's allowed?

I feel like JP Morgan Chase is definitely the stingiest. Ever since I started getting my paycheck deposited there, they’ve never let me overdraft more than a single salary—sometimes even less than that. Maybe it’s just because I don't really push my luck with it.

neondriver5 said:Are we all collectively aware that a negative balance eventually has to be paid back?

If this wasn't your own cash to begin with—if it’s just borrowed money—it isn't exactly a perk from some big bank like Chase or Wells Fargo to let you sit in the red by the amount of two, three, or even five paychecks.

At the end of the day, that's someone else's money. If a paycheck fails to hit your account, the bank can simply wipe out that overdraft at any time.

No, I wasn't really thinking about it... neither the interest accruing on the balance, nor the fact that the bank holds the right to adjust the limit and essentially force you to settle up.🙄

Yes, I am fully aware... of the risks, the interest rates, and the various fees involved.

But I am also realistic—there is a massive gap between what one wants and what one can actually afford. If I have the means to clear the deficit within a reasonable timeframe, why wouldn't I make use of it?

>>>I'll take a look at the different account packages and head down to the local Chase branch.

darkmaker94 said:I feel like JP Morgan Chase is definitely the stingiest. Ever since I started getting my paycheck deposited there, they’ve never let me overdraft more than a single salary—sometimes even less than that. Maybe it’s just because I don't really push my luck with it.

Do you just have a basic checking account or a full banking package? To get a 300% limit at JPMorgan Chase, you'd probably need a massive, high-rolling portfolio, if you ask me.
With just a standard account and mobile banking, you're lucky to get 100% of your salary.

Then again, it's entirely possible they won't bump it up simply because you aren't using it.

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I used to have a dynamic portfolio, but I switched over to Mobile Banking once it dropped.

darkmaker94 said:I used to have a dynamic portfolio, but I switched over to Mobile Banking once it dropped.

Maybe it’s just because you don't use it enough.

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darkmaker94 said:I used to have a dynamic portfolio, but I switched over to Mobile Banking once it dropped.

Look, I don't know what kind of salary you're pulling in, but with Mobile Banking, you can carry an overdraft of up to $2,500. Now, whether that’s based on one month's pay or three, I haven't a clue, but if you're looking to run up a massive debt, just stick with that old credit line for $30; that's what I did, and let me tell you, my balance is deep in the red.

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Has anyone else noticed if their banks updated their overdraft limits following the COVID fallout?

I’m currently using an OTP account—and based on what I've been reading in the news, it seems banks have tightened things up a bit due to the crisis. Even the Federal Reserve is suggesting more flexibility to ensure the burden doesn't fall too heavily on the consumer.

My paycheck took a 20% hit recently, so now I'm wondering—will they slash my overdraft limit too once they start processing everything?

Thanks.

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They shouldn't have. JP Morgan Chase let those overdrafts slide anyway.

Regardless of whether the average rank starts dropping?

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Yeah, my average shot up, so I ended up with the same amount anyway. They just told me if I need more, I should hit up a local branch.

Nice

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I don't know about that. I'm not buying it.
My overdraft limit got cut down.
And it’s only good for six months now, instead of a full year like it used to be.

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Which bank are we talking about?

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JP Morgan Chase cut their overdraft limit from 8600 down to $2233.
And I guess they bumped the APR up by 0.5 percent too.

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Jerry Jackson12 said:Has anyone else noticed if their banks updated their overdraft limits following the COVID fallout?

I’m currently using an OTP account—and based on what I've been reading in the news, it seems banks have tightened things up a bit due to the crisis. Even the Federal Reserve is suggesting more flexibility to ensure the burden doesn't fall too heavily on the consumer.

My paycheck took a 20% hit recently, so now I'm wondering—will they slash my overdraft limit too once they start processing everything?

Thanks.

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They finished my review and actually increased my limit (I have a secondary income hitting that account) — Visa

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Does anyone happen to know if banks typically approve an overdraft if you're currently on medical leave due to pregnancy complications? I’ve been steadily employed for quite some time and have never needed one, but I am wondering if I could request one now given the circumstances.

The Federal Reserve is floating this idea to amend the speed limit law regarding silent overdrafts... and if you look at the circular, they’re proposing a cap of just $500 over a 90-day period.

According to the Fed's "circular," here's how it works: banks would supposedly have to adjust or lower interest rates on existing silent overdrafts... (!?) They even bring up authorized overdrafts—which already have much more favorable legal regulations—suggesting they'd start vetting creditworthiness for those too (?!—as if they haven't been doing that all along...)

https://lider.media/poslovna-scena/h...tiranju-138018

The Federal Reserve clearly has nothing better to do. What an absolute joke.

The goal here is to stop banks from playing dirty by abusing those silent overdraft approvals on transactions that should actually be cleared. Right now, about 95% of all approved overdrafts are happening silently, even though that was originally supposed to be the exception, not the rule.