What is overdraft fee

Banks and savings banks have many types of commissions . One of them is the uncovered commission. This commission is the one that the entity charges if it allows to charge or dispose of the account without having a balance. That is, the uncovered commission is the commission that is applied when the account balance is negative; so we owe money to the bank.

How does it apply

First, the bank applies this commission for the simple fact of staying below 0 (also called in red). Second, it also applies an interest rate to money that is during that time in short.

Limitations of the uncovered commission

However, the uncovered commission has three very important limitations, which should be known by the clients of any entity. In this way, this commission can not be charged when: - The uncovered is the cause only of the different valuation dates attributed to the income and withdrawals in the account by banking procedures. - You can not charge the same commission twice for the same discovered .- The uncovered commission added to the interest produced by such discovered can not reach an APR higher than 2.5 times the legal interest of the money at each moment.

Tips
  • Remember that if you have been charged the commission for short and you were in one of the above situations you can always claim it.