overdraft-charge

Vocabulary Word

Definition

'Overdraft-charge' is a fee imposed by a bank when a customer's account balance drops below zero. It generally happens when transactions are posted to an account without enough funds to cover them.

Examples in Different Contexts

In consumer rights, 'overdraft charges' are often scrutinized for fairness and transparency. A consumer advocate might argue, 'Banks should provide clearer information on overdraft charges to help consumers make informed decisions.'

Practice Scenarios

Software

Scenario:

We're designing the new mobile banking app. Any functionalities that should be emphasized?

Response:

Adding a functionality that alerts users of potential overdraft charges could help avoid financial penalties and improve the user experience.

Legal

Scenario:

This class action suit against the bank raises questions about responsibility to customers.

Response:

Indeed, banks should consider fair overdraft charge policies that respect consumer rights and promote financial wellbeing.