Tips for Getting your Overdraft Fees Refunded

Getting hit with overdraft fees, especially when there are several charges, can really put a crimp into many of our tight budgets. Most often, initial reactions are anger and frustration; we all just want to get the money back! The process is simply unfair.  Yes we can all complain to our banking representatives or consumer advocates but realistically, complaining will not provide a quick solution to the problem.

So how do you get the money returned from the bank and back where it belongs – in your pocket?  Believe it or not, you can get overdraft fees refunded.

Read below for tips on getting an overdraft refund from your financial institution.

(Want to avoid paying overdraft fees in the future? How to Avoid Paying Overdraft Fees Forever.)

1.      If you collect social security direct deposits, you are can try and use this against your bank.  Until recently, banks were absolutly not allowed to collect overdraft fees from social security deposits.  As of recent, however, this has changed due to a California court’s ruling on a Bank of America case.  You can read more about it here.

2.      Threaten to sue in small claims court.   If you feel you are entitled to an overdraft fee refund, you can threaten to sue in small claims court by writing a form letter, documenting the reasons for the suit by the unfair practices of the bank and explaining that you did not choose automatic withdrawal on overdraft fees.  Don’t waste time trying to negotiate, simply state your plans in your letter.  Financial institutions do not want to waste time in small claims court and will most often refund the fee as a result.  Here is an informative case example of how it works:  http://consumerist.com/5190260/man-gets-overdrafts-refunded-by-taking-bank-to-small-claims.

3.      If your overdraft fees are less than $100, go to a competitive bank and offer to move your account for the equivalent of the fees.  Many financial institutions today offer cash for a new account and would love to have your business.  I know it is inconvenient to change accounts and the new bank may only give you the money over several months, but with branches on every corner this is one of the best and quickest ways to get your money back in your pocket.

4.      If you have never entered into overdraft before, many banks will refund the fees.  You will want to call and write a letter stating your cause.

5.      Negotiate a refund with the bank if the above tips don’t work for you. Negotiate your customer loyalty, your banking history, relationships you have with bank staff and reasons why you may have to take the issue to small claims court.  Excellent tips for negotiation can be found at http://www.ehow.com/how_2063013_get-refund-overdraft-charge.html

I am available to help you obtain an overdraft fee refund and answer any questions you may have.  Remember, it may be unfair that you were charged overdraft fees, but avoiding fees while getting great service in the future is important.