What the #($*#*????

[catleg]

Here's my favorite quote about why this outrage is not going to be fixed anytime soon.

Representative Carolyn Maloney, Democrat of New York, would go even further by requiring warnings when a debit card purchase will overdraw an account and by barring banks from running the most expensive purchases through accounts first.

Michael Moebs, an economist who advises banks and credit unions, said Ms. Maloney’s legislation would effectively kill overdraft services, causing an estimated 1,000 banks and 2,000 credit unions to fold within two years. That is because 45 percent of the nation’s banks and credit unions collect more from overdraft services than they make in profits, he said.

Good riddance.

NY Times: The Card Game: Overspending on Debit Cards Is a Boon for Banks

[bktek]

The one thing I am a bit confused over is the negative balance. So the amount owed to them was more than you had in the account, but I don't get how you can be negative. I mean if the bank 'paid' them off...wow great. Now the bank and try to get $6K from you...LOL

My bank said they initially debited my account for the entire amount of the judgment, which caused the huge negative balance. Before it was withdrawn the debit was adjusted to exactly the amount contained in my account. So, the balance is ZERO now.

[catleg]

My bank said they initially debited my account for the entire amount of the judgment, which caused the huge negative balance. Before it was withdrawn the debit was adjusted to exactly the amount contained in my account. So, the balance is ZERO now.

What I've found interesting is that generally the bank is NOT allowed to take their service charge out of the levied amount, rather, they will "bill you later" for it since it's between you and them. So expect a minus 150 or thereabouts in the near future.

[debtprison]

What I've found interesting is that generally the bank is NOT allowed to take their service charge out of the levied amount, rather, they will "bill you later" for it since it's between you and them. So expect a minus 150 or thereabouts in the near future.

Which really sucks if you do direct deposit and can't catch it in time. My understanding is also that the IRS does a 21 day hold and any deposits within that time are also given to the IRS. You can't withdraw anything, but they will let you deposit. Then at the end of the 21 days you are hit with the fee from the bank and are in negative territory.

[debtprison]

What I've found interesting is that generally the bank is NOT allowed to take their service charge out of the levied amount, rather, they will "bill you later" for it since it's between you and them. So expect a minus 150 or thereabouts in the near future.

In thinking it would have been a lot better for the debtor if the bank were required to take the charge out of the garnished funds. That would mean that garnishing when there are little funds in the account would not be worth it. Too bad...