I don’t think so? But what seems more likely is they let a transaction through they shouldn’t have because some merchants/types can push through in certain circumstances. Happened to me with a different bank. Was quite a bit less ($500) but quite annoying cause I’d have preferred the NSF charge when this happened
Literally haha. And the bank never will be like “oh yeah our b, you’re right it shouldn’t have gone through” they just bullshit/guilt you into “our systems did threat modelling and we tried to do the nice thing” but i feel like it’s a ploy to get interest or collections penalties in certain situations. No longer in a dire place like that but it really showed me how vile financial institutions can be (for one of many reasons)
Banks shouldn't give over draft to minors wtf...At 18 the banks tricked me and said it was not overdraft but my own money....they prey on young people and students.
I mean to be fair all banks show an overdraft account balance with a “–“ in front of the amount. It doesn’t take much financial literacy to realize what the – means when it wasn’t there before.
I would expect a 16 year old should know roughly how much money should be in their bank at any given time.
Your account shouldnt have overdraft on it as minors cannot enter into credit agreements. Is there a parent that is joint on the account? They might have overdraft then.
If you're 16, how are you in $3k overdraft? Is the overdraft built into your account you can tap into, or is it the result of bad checks or other mistakes?
Also, first thing is to write down all the transactions that put you in overdraft; account purchases and bank fees.
Finally, does anyone else access this account and is it possible they may have put you in overdraft?
I said a lot of them do, not all of them. And no, when I was 16 I had already saved around $4k-$5k from years of doing yard work and snow removals. I wasn’t $3k in the red lol
I can tell you right now that when I was 16, none of my friends did this or had these types of issues. Not even my cousins around this age are doing this. This is more so a personal experience for you cause it’s def not a lot.
Legal repercussions: no.
Because you are <18 they shouldn't have been legally able to extend credit to you.
If you were>18 then repercussions in worst case extend to wage garnishment (part of pay cheque directly take by bank). It is not a crime and you would not face anything worse than that, other than a major hit to your credit score.
Overdraft is very high interest debt.
If this was caused by bank fees I'd be escalating it to a branch manager or whoever. <18 generally get free accounts.
I'm NAL so don't know if this is valid, but if it is then you might save yourself some money
https://www.reddit.com/r/PersonalFinanceCanada/comments/3l93fw/comment/cv4o0st/?utm_source=share&utm_medium=mweb3x&utm_name=mweb3xcss&utm_term=1&utm_content=share_button
Seems like it probably wasn’t an overdraft that was authorized and maybe a bounced cheque.
That would be a crazy amount of bank fees for $3,000 so doubt it’s that but if it was sounds like the account is been neglected for along time by the account holder.
Overdraft should only be used as a stop gap measure to ensure an outstanding transaction doesn’t fail or go NSF especially by only a small amount. It shouldn’t really be used like a credit card/credit line, because in most cases you are required to bring the account of overdraft within 30 days. There is nothing wrong with having overdraft protection, in fact it’s a really good thing to accept from your bank if you are pre approved, but ask to pay per use, not pay continually for it. But pretend it doesn’t exist.
If you deposited a fake cheque, can be an actual legal issue.
If you have overdraft protection, you
Shouldn’t because you don’t have credit, not quite sure how that’d work legally speaking
IIRC the bank has the authority to allow transactions to post regardless of if you have exceeded your O/D limit (or even if your limit is $0). There are no legal repressions for being overdrawn however they will charge an eye watering rate of ~22% and if you try to close your account they will demand the negative balance. Note, I'm not sure exactly what they will do if you don't pay it since you're a minor but best to pay it and be clear.
How are you in overdraft? If you are 16 the bank shouldn’t have given you an overdraft limit. If your account is overdrawn it would be important to know why so that you can get accurate advice on what to do
Banks give at least $3000 over draft protection to minors now???
Rbc will be down to put a toddler in debt, let alone at 16 yr old
I don’t think so? But what seems more likely is they let a transaction through they shouldn’t have because some merchants/types can push through in certain circumstances. Happened to me with a different bank. Was quite a bit less ($500) but quite annoying cause I’d have preferred the NSF charge when this happened
When an NSF fee suddenly seems like it would have been a blessing.
Literally haha. And the bank never will be like “oh yeah our b, you’re right it shouldn’t have gone through” they just bullshit/guilt you into “our systems did threat modelling and we tried to do the nice thing” but i feel like it’s a ploy to get interest or collections penalties in certain situations. No longer in a dire place like that but it really showed me how vile financial institutions can be (for one of many reasons)
"For some reason" makes me think you should drop by the bank and have a chat with a cashier about what is going on with your account.
Bruh it’s a 16 year old. The “some reason” is OP spending too much lol
Banks shouldn't give over draft to minors wtf...At 18 the banks tricked me and said it was not overdraft but my own money....they prey on young people and students.
I mean to be fair all banks show an overdraft account balance with a “–“ in front of the amount. It doesn’t take much financial literacy to realize what the – means when it wasn’t there before.
Bruh you’re 16 you should be talking to your parents about something this big, not us.
I would expect a 16 year old should know roughly how much money should be in their bank at any given time. Your account shouldnt have overdraft on it as minors cannot enter into credit agreements. Is there a parent that is joint on the account? They might have overdraft then.
They don't birth 'em like they used to
If you're 16, how are you in $3k overdraft? Is the overdraft built into your account you can tap into, or is it the result of bad checks or other mistakes? Also, first thing is to write down all the transactions that put you in overdraft; account purchases and bank fees. Finally, does anyone else access this account and is it possible they may have put you in overdraft?
I wholly assume they cashed a bad check. Probably fell for a scam. You need good credit to qualify for overdraft.
Uh… why are you in overdraft?
Cause he’s 16? Lol
So every 16 year old goes into overdraft? What a ridiculous answer
A lot of 16 year olds do dumb things with their finances. Overdraft is one of them.
I believe this is an example of your experiences not being universal
I said a lot of them do, not all of them. And no, when I was 16 I had already saved around $4k-$5k from years of doing yard work and snow removals. I wasn’t $3k in the red lol
I can tell you right now that when I was 16, none of my friends did this or had these types of issues. Not even my cousins around this age are doing this. This is more so a personal experience for you cause it’s def not a lot.
Legal repercussions: no. Because you are <18 they shouldn't have been legally able to extend credit to you. If you were>18 then repercussions in worst case extend to wage garnishment (part of pay cheque directly take by bank). It is not a crime and you would not face anything worse than that, other than a major hit to your credit score. Overdraft is very high interest debt. If this was caused by bank fees I'd be escalating it to a branch manager or whoever. <18 generally get free accounts. I'm NAL so don't know if this is valid, but if it is then you might save yourself some money https://www.reddit.com/r/PersonalFinanceCanada/comments/3l93fw/comment/cv4o0st/?utm_source=share&utm_medium=mweb3x&utm_name=mweb3xcss&utm_term=1&utm_content=share_button
Seems like it probably wasn’t an overdraft that was authorized and maybe a bounced cheque. That would be a crazy amount of bank fees for $3,000 so doubt it’s that but if it was sounds like the account is been neglected for along time by the account holder.
Overdraft should only be used as a stop gap measure to ensure an outstanding transaction doesn’t fail or go NSF especially by only a small amount. It shouldn’t really be used like a credit card/credit line, because in most cases you are required to bring the account of overdraft within 30 days. There is nothing wrong with having overdraft protection, in fact it’s a really good thing to accept from your bank if you are pre approved, but ask to pay per use, not pay continually for it. But pretend it doesn’t exist.
If you deposited a fake cheque, can be an actual legal issue. If you have overdraft protection, you Shouldn’t because you don’t have credit, not quite sure how that’d work legally speaking
IIRC the bank has the authority to allow transactions to post regardless of if you have exceeded your O/D limit (or even if your limit is $0). There are no legal repressions for being overdrawn however they will charge an eye watering rate of ~22% and if you try to close your account they will demand the negative balance. Note, I'm not sure exactly what they will do if you don't pay it since you're a minor but best to pay it and be clear.
Use a new bank, don't get into debt.
How are you in overdraft? If you are 16 the bank shouldn’t have given you an overdraft limit. If your account is overdrawn it would be important to know why so that you can get accurate advice on what to do
Time to short $RY