Checking account advance

[KKAB]

Until now I never realized how much I pay my bank in fees. Charging $37.50 for each overdrawn check certainly fuels my hatred for this bank.

[pa308]

Not to sound stupid, but what exactly is a checking account advance??

[Flamingo]

Just another term for "Pay Day Loans."

[qwertysue]

Many banks will *advance* you up to a certain dollar amount if you have direct deposit. Let's say you take a $400 advance on Monday. Your direct deposit is scheduled at midnight on Thurs/Fri. On Friday your account gets the direct deposit as well as the $400 debit to pay back the advance, plus and additional *fee* for the advance.

[HHM]

I like how you "blame" the bank...isn't it you who decided to take the advance...that is like an over-weight person blaming the chocolate for their problem and not the fact that they are the ones that choose to eat the chocolate.

[KKAB]

Okay, I admit I "blame" the bank. Too bad they aren't a fast food restaurant or I would win a law suit! Our bank has taken drastic turns lately that infuriate me. I totally agree it was me who signed up for these dang advances.

[keepmine]

Those fees are dischargable.
I doubt it's a preference issue since you do have a business relationship and they are not an insider.

[PaKettle]

Until now I never realized how much I pay my bank in fees. Charging $37.50 for each overdrawn check certainly fuels my hatred for this bank.

Try asking this in a specific Ch. 13 or Ch. 7 forum. Maybe someone will actually answer your specific question there.

Regardless of the fact you signed up for it, I agree that it is an outrageous fee and the government should not allow banks to charge such outrageous fees. How is it justifed to charge that much? It's clearly gouging the customer. But of course the banks will charge as much as they legally can and people who need the service will pay it because they are over a barrel.

As I understand it if you owe money to anyone for any reason it can be included in your bankruptcy and you would pay no fees or costs in doing so if it's discharged. Don't quote me, though, as I am not an attorney and don't even play one on tv.

Is it a preferential payment? I don't know.

Like I say, if no one answers your specific question here about preferential payments, try it in one of the Chapter-specific forums.