The abusive bank overdraft is one of those hot-button items that people will bring up with friends and co-workers during casual conversation. You may frequently hear statements like, “I couldn’t believe it – I checked my checking balance online on yesterday and it showed three overdrafts – even though I was only overdrawn by $8.”
Other people are afraid to bring up the issue for fear of coming across like an irresponsible consumer. After all, overdrafts only happen when the account owner is careless with his or her spending, right? Well, not necessarily.
It is true on the one hand that big banks do not have the power to force someone to overdraw their checking account. But, at the same time, banks engage in practices that increase the likelihood of an overdraft – on purpose.