Can a bank enroll my business account in overdraft protection without my knowledge?
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Can a bank enroll my business account in overdraft protection without my knowledge?
I recently opened a business account. I had been making debit transactions out of the account and did not realize my account was low. The bank continued to approve my card then turned and charged me $38 NSF fees. I called the bank and they said that I had overdraft protection on my account. I tole them that I did not sign up for that nor did I want it. They told me that it was required on all business accounts. Can they do this? They hit my account with 30 NSF fees of almost $1200. I know the obvious, why wasn’t I tracking my account but I assumed the card would declined.
Asked on February 23, 2012 under Business Law, Arizona
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
My understanding is that if you do not sign up for overdraft protection with a bank and have the request signed in writing that the lending institution cannot enroll your business in such a program unilaterally.
I would meet with your bank's manager and voice your concerns over the $1,200 in charges and try to get them reversed.
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