The relationship between banks and their customers is a symbiotic one. When you keep your money with a bank, the bank pays you interest in return for the ability to lend out your money, thus making a profit for the lending institution. Banks allow their customers to draw out more money than they have in their accounts, but they may charge exorbitant fees for this process. Because some banks are less than up front about their overdraft charges, they can contribute to significant debt for people who overdraw their accounts.
The Cost of Overdraft Charges
Many banks and lending institutions make significant amounts of money from overdraft charges, and are unlikely to reverse the charges. Overdraft charges can occur in a number of ways, including:
- ATM withdrawals
- Business error
- Bank error
- Bank fees
- Deliberate bank fraud
Because of the costs associated with overdrawing an account, it is usually advised to keep an accurate register of the balance in your bank account.
If you or someone you love is trying to live with the burden of massive debt, the Milwaukee bankruptcy attorneys at the DeLadurantey Law Office, LLC may be able to help. To learn more about how we may be able to help you overcome your debt through filing for bankruptcy, please contact us today by calling 414-377-0518.