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Account Overdrawn Due to Bad Check: What to do?
I have an account that is overdrawn by $2,900. I received a business check that was no good and caused me to bounce a lot of checks. The bank paid a lot of the checks that bounced, but $1,900 of the $2,900 is from overdraft charges. The overdrawn amount was initially $8,900, but I have since paid $5,000 to the bank, but cannot come up with the rest.
The bank has charged off the accounts. Will they report it to the credit bureau? What should I do? I am currently living paycheck to paycheck. I have a lawsuit against the person who gave me the bad check that I am waiting to get resolved.
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 It's likely that your former bank will report the fact that your account was charged off to a credit bureau. That could make it difficult for you to open another checking account elsewhere.
If you succeed in your suit against the person who gave you the bad check, settle up with your former bank. You might try to negotiate a dollar amount that would settle the claim the bank has, perhaps for less than the full amount. The bank won't be obligated to settle for less than full payment, but it may be willing to make some concession if you are able to pay the entire balance at once (instead of over a long time). Get a receipt from the bank acknowledging that you've paid the debt in full, along with the bank's assurance that it will update your record at the credit bureau to indicate the debt is settled (the bank cannot remove the negative report; it can only update it).
Published on BankingQuestions.com 9/25/07
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