Federal Reserve - overdraft limits

Alexander Johnson7 NewcomerOP

4 messages
joined Jun 2008

#1 · Apr 3, 2009

Hey, I’ve got an approved overdraft with the Federal Reserve set to expire on May 15th, but I’m expecting some unemployment benefits to hit my account soon. Do I have to pay back the full amount, or will they just take the difference since I'm getting that money?

mellowfox56 Active Member

94 messages
joined Mar 2012

#2 · Apr 3, 2009

Alexander Johnson7 said:Hey, I’ve got an approved overdraft with the Federal Reserve set to expire on May 15th, but I’m expecting some unemployment benefits to hit my account soon. Do I have to pay back the full amount, or will they just take the difference since I'm getting that money?

Did you actually head down to the bank once those unemployment checks started coming in? You need to make sure they've officially logged that as income. Usually, when they calculate your allowed overdraft limit at the Federal Reserve, they look at your income from the last six months, so you can probably do the math yourself. The main thing is making sure they have that unemployment payment flagged as part of your regular income, so it's definitely worth stopping by the branch to double-check.

Zachary Sanders2 Newcomer

1 message
joined Oct 2009

#3 · Oct 6, 2009

It’s essentially this🙂 I have $1167 an authorized overdraft with the Federal Reserve, and since I haven't been employed for six months now, they are looking to revoke my credit limit. I am currently trying to figure out what kind of specific actions they intend to take next, and whether there might be any possibility of negotiating a structured repayment plan given that I am currently unemployed. I suspect they might decline such a request, likely questioning where I would find the monthly funds to cover the installments if I don't have a steady income. If they refuse to grant me a payment plan, how much time will I actually have to settle the debt?

David Scott9 Newcomer

8 messages
joined Feb 2009

#4 · Oct 7, 2009

You should definitely hit up your bank. Honestly, they’re usually pretty willing to work with you on setting up a monthly payment plan if you just ask.

Alexander Johnson7 NewcomerOP

4 messages
joined Jun 2008

#5 · Nov 7, 2009

Zachary Sanders2 said:It’s essentially this🙂 I have $1167 an authorized overdraft with the Federal Reserve, and since I haven't been employed for six months now, they are looking to revoke my credit limit. I am currently trying to figure out what kind of specific actions they intend to take next, and whether there might be any possibility of negotiating a structured repayment plan given that I am currently unemployed. I suspect they might decline such a request, likely questioning where I would find the monthly funds to cover the installments if I don't have a steady income. If they refuse to grant me a payment plan, how much time will I actually have to settle the debt?

Does anyone actually have experience getting a bank to budge on overdraft fees? Like, can you get them to pause the charges or maybe at least set up a payment plan? Any takers?

cosmicgardener4 Newcomer

1 message
joined Nov 2009

#6 · Nov 8, 2009

I suppose a bank can't just extend an overdraft without a valid reason, but if you get ahead of things and talk to them, you might be able to set up a repayment plan through your checking account. You basically pay it back in installments on a day you pick—like the 15th or whenever works for you. I think once you've cleared the debt, you'll probably be barred from using overdrafts or getting new credit for about a year, even if you land a job, though you shouldn't end up on any official blacklist.

Andrew Martin13 Member

49 messages
joined May 2012

#7 · Nov 21, 2009

I’m wondering if I could get approved for an overdraft. I’ve been receiving my paycheck through them for over six months now, and they finally cleared my name from the blacklist last month. Just so there’s no confusion, I know I’ll be flagged in their system for another three years
They just handed me my debit card and security token, but honestly, I felt too awkward to ask about a line of credit. If anyone knows how they handle this, please let me know.

Eric Fowler19 Member

27 messages
joined Oct 2007

#8 · Nov 21, 2009

Andrew Martin13 said:I’m wondering if I could get approved for an overdraft. I’ve been receiving my paycheck through them for over six months now, and they finally cleared my name from the blacklist last month. Just so there’s no confusion, I know I’ll be flagged in their system for another three years
They just handed me my debit card and security token, but honestly, I felt too awkward to ask about a line of credit. If anyone knows how they handle this, please let me know.

Ask for a personal banker and just talk to them. Explain why you were on that blacklist; they might actually approve it. They’re pretty flexible and way better than Wells Fargo. They tightened up a bit compared to a few years ago, but it all comes down to the conversation you have with them.

Andrew Martin13 Member

49 messages
joined May 2012

#9 · Nov 23, 2009

I have to admit, I saw lines stretching out the door at the local Federal Reserve branches last week that were just unbelievable. It’s clear people are facing some serious financial crises right now.
What's happening is a total disaster.

Kimberly Lopez65 Member

27 messages
joined Mar 2008

#10 · Nov 23, 2009

Is it because they’ve been slashing everyone's overdraft limits? 🙂

Just a quick thought—I recently moved my direct deposit over to the Federal Reserve, and it took them three whole months just to approve an overdraft line. And that’s despite their flashy brochures claiming you can get it instantly. Then, about a month after they finally approved it—for 50% of my paycheck, mind you (I don't actually need the money, I just keep it as a safety net since I usually stay in the black)—I get this little "congratulations" note from them saying they're cutting my limit down to $500. It’s pocket change compared to what they originally gave me. I haven't bothered going into the branch to complain yet, though I'm thinking about it. My day-to-day finances haven't changed one bit; if anything, my pay bumped up slightly, but no, they still decided to shrink my credit.
Anyway, I got that "greeting" about three weeks ago, and it kicked in last week... which is probably why there's such a massive line at the Federal Reserve right now.

Anyone else dealing with this nonsense?

If anyone is considering switching to the Federal Reserve—don't. Just stay away. Every bank is pretty much garbage; some are just slightly less terrible than others. The Federal Reserve definitely isn't one of the better ones.

Andrew Martin13 Member

49 messages
joined May 2012

#11 · Nov 23, 2009

I didn't realize the crisis had hit this hard—to the point where they’re slashing credit limits for people who don't even need the extra cushion. I have to admit, though, I saw massive lines forming outside the local Federal Reserve branches today. I wasn't entirely sure what was driving the rush, and honestly, I'm still not quite certain myself.
You know things are truly desperate when people start liquidating everything in sight, including their gold, just to take on more debt.

Andrew Martin13 Member

49 messages
joined May 2012

#12 · Dec 10, 2009

I don't get how they can even offer me a credit card when my negative balance wasn't cleared until the end of October, and apparently, I have to wait at least six months just to get an overdraft line
The logic escapes me here.
It’s obvious they see more ways to bleed me dry with a card. Honestly, with interest rates this high, nobody in their right mind would touch it. My husband was being charged 5% monthly on a $5,000 limit—so roughly $83 just in interest and fees. Tell me, is that actually considered normal?

Michelle Harris27 Member

27 messages
joined May 2013

#13 · Jan 23, 2010

Andrew Martin13 said:I don't get how they can even offer me a credit card when my negative balance wasn't cleared until the end of October, and apparently, I have to wait at least six months just to get an overdraft line
The logic escapes me here.
It’s obvious they see more ways to bleed me dry with a card. Honestly, with interest rates this high, nobody in their right mind would touch it. My husband was being charged 5% monthly on a $5,000 limit—so roughly $83 just in interest and fees. Tell me, is that actually considered normal?

Trust me, they’ll happily hand you a shiny new credit card application, but once that request actually hits the desk of someone in the credit department, it's going to get rejected immediately!!

When it comes to being flagged on a credit blacklist, everything depends on the date you were cleared. For certain financial products, you might have to wait three whole years from that date before they'll even look at you again!!

Andrew Martin13 Member

49 messages
joined May 2012

#14 · Feb 4, 2010

Honestly, I’m at a loss for how to deal with the people at Chase who completely screwed me over. They kept me on a blacklist for way too long. Even though the court issued an order to clear my account back in February 2009, they dragged their feet. It took me ten months of fighting them tooth and nail just to get that cleared—it was ridiculous enough that even the judge lost patience with them.
Now, because of their incompetence, I have a permanent, terrible view of bankers, and there's nothing I can do about it.

The Federal Reserve folks told me I wouldn't even be eligible for an overdraft limit until I'd been with them for at least six months. Meanwhile, they’re out here aggressively pushing credit cards, even though the interest rates are absolutely predatory. They didn't seem to care at all that I was on a blacklist; I made it crystal clear that I wasn't touching anything with those usurious rates.

lonescout63 Newcomer

3 messages
joined Jul 2010

#15 · Jul 29, 2010

Greetings to everyone out there... if anyone happens to know what the current turnaround time is for getting an overdraft approved at the Federal Reserve.... I would truly appreciate any insight you all might have🙂😉
...I was sitting at 100% and requested an increase to 200%...

James Hayes6 Member

22 messages
joined Jul 2014

#16 · Jul 29, 2010

lonescout63 said:Greetings to everyone out there... if anyone happens to know what the current turnaround time is for getting an overdraft approved at the Federal Reserve.... I would truly appreciate any insight you all might have🙂😉
...I was sitting at 100% and requested an increase to 200%...

Absolute disaster. Running away from an overdraft is just asking for trouble—it’ll wreck the economy and ruin you personally too.
It's basically the bank injecting fake money into the system just to create addicts. They pad their own profits and bonuses while doing it. It's printing money without any backing, and then you spend it once, thinking you're fine, until suddenly you're trapped in this endless cycle of debt addiction.

Seriously, it's awful. Running blindly toward this stuff is a mistake. It tastes sweet once or twice, sure, but eventually, it turns bitter—and by then, you're stuck swallowing the bitterness.
Stay far away from those "sweet" little overdrafts!!!

lonescout63 Newcomer

3 messages
joined Jul 2010

#17 · Jul 29, 2010

James Hayes6 said:Absolute disaster. Running away from an overdraft is just asking for trouble—it’ll wreck the economy and ruin you personally too.
It's basically the bank injecting fake money into the system just to create addicts. They pad their own profits and bonuses while doing it. It's printing money without any backing, and then you spend it once, thinking you're fine, until suddenly you're trapped in this endless cycle of debt addiction.

Seriously, it's awful. Running blindly toward this stuff is a mistake. It tastes sweet once or twice, sure, but eventually, it turns bitter—and by then, you're stuck swallowing the bitterness.
Stay far away from those "sweet" little overdrafts!!!

Well, I appreciate the concern, I really do, but I've been carrying a balance since last year and I'm certainly not foolish enough to let it spin out of control... honestly, I've learned plenty from watching others, but I make a decent enough salary to clear it all instantly, so... I am purely asking for information on how long the approval process takes, because for someone with my income, it feels like a tiny micro-loan... and please rest assured, I have everything completely under control...😉I just need a quick bridge from my next paycheck to cover the deficit, so it's not like I'm in any real trouble... I just really don't feel like dealing with the headache of a formal bank loan and all that tedious paperwork...

Jacob Wood9 Active Member

62 messages
joined Jun 2008

#18 · Jul 29, 2010

I mean, wouldn't it just be easier to call 1-800-FED-RESERVE instead of wasting all this time going back and forth with these self-proclaimed geniuses who are probably already drafting their formal grievances

lonescout63 Newcomer

3 messages
joined Jul 2010

#19 · Jul 29, 2010

Jacob Wood9 said:I mean, wouldn't it just be easier to call 1-800-FED-RESERVE instead of wasting all this time going back and forth with these self-proclaimed geniuses who are probably already drafting their formal grievances

And regarding what you mentioned, I suppose I thought maybe someone had been out lately since people seem to be doing anything and everything for a trip to the coast—though personally, I’d rather stay home than deal with that chaos—but it seems you might be onto something... though if there happens to be a kind soul out there who could lend a hand, perhaps they could help, if not through a direct call to 911, haha...🤣🤣🤣

Frank Wilson5 Newcomer

1 message
joined Sep 2010

#20 · Sep 23, 2010

I need some help here... about three years ago, I was getting my paycheck at Wells Fargo and ended up with a negative balance of $2333. When my company switched banks, everyone moved their accounts over to JPMorgan Chase, so I cleared the debt but didn't actually close the account. Then, because someone needed cash urgently, I dipped back into the red—and honestly, I've been sitting on that overdraft for about a year and a half now. We're talking roughly $2500 total. What I don't get is that I haven't received a single notice about settling the debt, any lawsuits, or even a garnishment notice. How does that even work? Why aren't they contacting me? I wonder if there’s some kind of statute of limitations involved, or if they’ll eventually just show up and garnish my wages out of nowhere... I know plenty of people where the bank reacted within six months and immediately grabbed a third of their paycheck. Or maybe they worked out a payment plan? Does anyone have any insight into how this works or advice on what I should do? I really want to handle this the right way instead of waiting for a disaster.

thanks

Federal Reserve - overdraft limits

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