What affect would an unauthorised overdraft have on my credit score?
2010-03-03 at 12:47 am adminI recently went overdrawn at my bank due to no fault of my own. When I got paid, I spent all of my money on Christmas presents online. I checked my account, and as I thought, it was empty. Then a few days later I checked the account again and had £400 available balance. I assumed I had received through another payment from elsewhere and spent the money.
On checking the account again a few days later, I saw I was £400 overdrawn. So the bank took out the money I had spent online, then put it back, then took it again. It was their own mistake.
When I realised I was that much overdrawn, I immediately sent funds to my account to pay it back. It took about 5 days to clear into my account and bring it back to zero. During this time, I received a letter from my bank saying they had agreed to the overdraft – but only because the bank had guaranteed my payments. I then received numerous phone calls from them asking me to pay it back immediately, pestering me, asking for the exact date when they would have their money back.
It only took me 5 days to pay it back in full, so why were the bank so hard on me? Treating me like somebody who often goes into debt and doesn't pay it back.
Also, what affect would this have on my credit score? I would have thought it would be possitive because I have paid it so quickly – but I was told on the phone that they would be reporting my 'bad behavior' to the credit bureaus.
I think I have been treated unfairly by my bank. Have I? Or is this standard procedure?
Answer:You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – credit-report-score.10001mb.com
Answer:Well they treated you like that because you spent money that wasn't yours even though I understand what you are saying. It's completely standard procedure and you should never assume something like that if you don't know in fact the money is yours. It would have no affect on your credit score unless you didn't pay the money back and they sent you to collections.
Answer:Your story makes no sense.
Stating in one line that you checked your balance after all this shopping you did online and "as expected" you had a zero balance…then a few days later saw you had an available balance of 400, and *assumed* you got this money from a payment from elsewhere..(when someone is paying me, I don't assume, I know) so you went and spent this other 400.
Your story doesn't hold water. I get a feeling you knew you didn't have that additional 400, but took advantage of either a bank error or the ability to overdraw your account.
Yes, it is standard procedure for a bank to get paranoid when someone overdraws their account for that amount of money and to want to pin you down on when you intend to repay them.
As for your credit being affected, at least here in the states it won't be, unless you were to NOT bring your account back into the black and pay the outstanding overdrafted items.
Your bank, however, CAN close your account if they feel you purposely misused it.
Answer:Get a check register.
Google one from online.
If you have excell google excell check register.
It is your personal responsibility to keep track of how much you are spending.
Banks are 100% correct in charging you fees if you spend more than what you have.
In the US the bank first reports you to check systems (not a credit bureau). If you do not pay check systems in 30 days, then they may send it to collections which reports to the credit bureaus.
/
Related posts:
- No overdraft fee question? Does no overdraft fees mean that I have $50...
- HOW MUCH WILL THIS AFFECT MY CREDIT SCORE? I hate to admit it, but I'm terrified of...
- How does having a large balance on your card affect your credit? Now, the details: I just payed for a car...
- If a line of credit was bankruptcy discharged, how does this affect the co-signer? Should I stop paying it? My mother co-signed for me for a Bank of...
- Does child support garnishment affect credit score? I was wondering if my credit score will be...