I just received an overdraft notice charging me $400 for an overdraft in May 2009, for which I had received no previous notification. The $400 included mostly interest and penalties added to the original overdraft charge. Is this legal for the bank to delay notifying me for four months, allowing the accumulation of such exhorbitant additional fees?
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The bank did notify you of the overdraft, in your bank statements, assuming that you are discussing a checking account. You should have received or had access to at least four statements since the May overdraft.
The bank is under no obligation to provide you a separate notice when your balance goes negative. On the other hand, you do have an obligation to review your bank statements and to report any errors promptly. If you had done so, you would have learned of the overdraft a lot sooner, when it was more manageable.
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The bank did notify you of the overdraft, in your 