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If you have a checking account with a negative 500.00 balance for a long period of time can your bank sue you even if your making fifty dollar payments a month to get it slowly paid back?
Wiki User
∙ 18y ago
They can't sue you if the $50 a month payment arrangement is something you both agreed on (and if it is, you should have it in writing or at least a contact name and number). If, however, you're delinquent and the bank wants its money, they have the right to sue. If you have no formal payment arrangement, call the bank, let them know you're doing your best to honor the debt and see if they'll set up a payment arrangement with you. In the end, the bank just wants its money; it's better for them to work with you rather than try to collect on what you don't have. When you sign up at a bank, you sign what's termed a depositor's agreement. That agreement is a contract. To the extent you break any term of that agreement, the bank has a cause of action and they can file suit. However, in reality, I'd be surprised if a legitimate financial institution would go that far for $500. You are likely to be contacted by a bank employee or local law firm threatening such action to encourage you to pay them. You might also be on the hook for additional fees, so it is best to pay it off as quickly as possible, even if you have to use a credit card with a high interest rate. Then you could pay the credit card at a more palatable pace.
Wiki User
∙ 18y ago
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What is the term used for a negative checking account balance?
"Overdrawn" is the common term used to describe a negative checking account balance.
Will having a negative balance in an unused checking account affect your credit rating?
No, having a negative balance in an unused checking account will not directly affect your credit rating. However, if you fail to pay off the negative balance and the account is sent to collections, that could potentially have a negative impact on your credit rating.
Can you close your checking account if you have a balance left on your VISA card?
Yes, you can close your checking account even if you have a balance left on your VISA card. However, closing the account will not eliminate your obligation to repay the remaining balance on your credit card. You will still be responsible for making payments on the outstanding debt.
What is usually the largest single account in the overall balance of payments?
The largest single account in the overall balance of payments is, for most countries, the current account.
Is checking your account an asset or a liabilities?
Checking your account can be considered an asset as it represents the funds you have available for use. However, it can also be seen as a liability if your account has a negative balance or if you owe money to the bank or other creditors.
What is my balance?
what is my recent deposit and balance on checking account elcantante i need my saving account balance
Can you close a checking acc when you have a neg balance?
Can a checking account be closed when you have a neg balance
What is a basic balance?
A basic balance is the net balance of the combination of a current account and a capital account in a balance of payments.
Balance of payments deficit?
A balance of payments deficit means there is an imbalance in the balance of payments of a country where the payments the country makes are more than the payments they received. It means the balance of payments is negative. A balance of payments deficit is,when government expenditure is more than government revenue
Which type of checking account pays interest on the mean balance of the account during a particular cycle?
Average Balance account
Why is my checking account showing a large negative balance?
There could be several reasons for a large negative balance in your checking account. It could be due to overspending or insufficient funds to cover transactions, such as bounced checks or declined debit card charges. It's important to review your account activity and contact your bank to understand the specific cause and work on a solution.
What is the difference between a current balance and an available balance on a checking acct?
The account balance will reflect any payments made into the account providing the account is on real time banking. So if you pay in any cheques the account balance will reflect this. The available balance will take into consideration any earmarks on the debit card which are due to debit and also any cheques you may have paid in that are at the moment still uncleared on the account.
