Legality of overdraft charges

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guerreroa

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Recently I had forgotten about an ACH withrawal that I had scheduled (i had scheduled it a couple of months ago) So when it came out of my account It cleared but my bank charged me a 25 dollar insufficient funds fee, well i had no idea that this had even happened so i thought I still had money in my account and continued to use my check card for various purchases. When I finally checked my account i saw that i was significantly overdrawn and had racked up 175.00 in insufficient fees charges(25.00 for each transaction). When I called my bank to get things straightened out the first thing I asked was why they would continue to let me use my card 7 times if i didn't have the funds to cover the purchases. They informed me that they sent a letter in May of 2007 informing members that there was a new program called "member privilege" that basically states that the bank covers purchases that would ordinarilly be denied due to insufficient funds and charges 25.00 for each transaction. If I did not want to be covered under this "privilege" I would have to contact the bank and let them know or else I would be signed up for it automatically. I don't remember ever receiving this letter, and am not sure if they can legally sign me up for such a program and charge me money for it without my permission. Any advice would be greatly appreciated.

Thank you,
Amanda
California
 
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Well if they bounced your checks you still would have been charged the $25.00 and the companies you wrote the checks to would have charged you fee's as well, so really it did technically save you money. You could always opt out of it but if this happened again you would owe more then $175.00 the fees and bills would be every where.

Yes they can do this, because either way they can charge you a NSF fee regardless if they pay the check or not.
 
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