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Home >> Accounts >> Checking Accounts
Account Overdraft Despite Linked Savings
My bank charged me overdraft fees when I deposited funds into my checking account. I set up a linked savings account to prevent overdrafts, and I told them in writing to cease overdrafting my checking account, but they still allowed my account to overdraft. They claimed that I never gave them permission to use the savings account, but their literature says that they will take funds from another account when they need to do so. How should I resolve this issue? Are there any federal cases related to overdraft infractions that I can cite for this situation?
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 The costs of a court action would not be justified in such matters, no court actions on these points come to mind. You need to work this out with your bank. Generally a bank that has a service such as this either requires special enrollment or the savings product has a special name and a checking account is associated with it when the savings account is opened.
The issue here is that you maintain you set up the linked account and they don't have a record that the account was supposed to be linked with your checking. If you opened the account, but didn't specifically tell them to link the accounts, that may be the problem. It is possible to have that savings account, but not link it to a checking account. These transfers are all done automatically and without human intervention, so the settings have to be correct.
Call the bank and ask for a bank officer over that area. Explain to them what actions you took to bank with them and have this service. If what you describe is not what they require, ask to get it corrected. If what you describe is the process they follow, perhaps they dropped the ball and should make it right. Once you identify where the breakdown occurred, you can identify who should pay any outstanding overdraft fees.
Published on BankingQuestions.com 4/08/08
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