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When a bank honors a check for which you do not have the money, it is considered an overdraft. The bank will recover its money as soon as the funds hit your account and charge an overdraft fee for honoring the check when the funds were not present.

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βˆ™ 10y ago
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βˆ™ 13y ago

When you write a check you are creating a legally binding agreement to pay the amount you write the check for to the person(s) whom you write the check to. Suppose your bank honors your check - that you wrote - you are responsible for refunding the negative balance and any fees the bank charges you (these fees are disclosed to you when you open the account).

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βˆ™ 12y ago

Then your bank may charge you a fee and you will be responsible for paying that and the difference between the check amount and the amount you had in your account. For instance, if you wrote a check for $500 and you had $400 in your account, and your bank charges an "insufficient funds" fee of $30, you now have to pay:

$500 - $400 + 30 = $170.

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Q: Suppose your bank honors a check for which you dont have?
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