In the usual case the amount you have to pay
to the bank is treated like any other revolving
loan, similar to, for example, a personal line
I'm not aware that these loans have any special
status just because they are "overdraft protec-
Probably the bank has the right to take money
out of any other accounts you might have with
So, if you don't pay the bank anything, what
usually happens is that the bank will send
notices in the mail and make phone calls.
Eventually they probably will send the loan
to a collection agency or sell it to a "bottom
feeder." The agency or bottom feeder will
send you notices in the mail and make phone
calls. If you still don't pay, the matter
eventually may get to a lawyer who may
send still more notices and make phone calls.
Eventually, you may or may not get sued,
all depending on the particulars of your
individual situation. Each step in this
process usually takes about three months or
I had overdraft protection on a credit union checking account when I filed
Chap. 7. The credit union turned the balance into a unsecured loan, and
notified me that I was not libel for the loan as my Chap. 7 covered it and I
did not have to pay it back, even though I neglected to list the debt on my
You are reported to the banking clearing house and will be unable to open a
checking account else where until you pay the funds. (it happened to me) If
the bank converted it to a loan, that sounds unusual. did you sign any "Loan
Paperwork" if not then I would be very cautious about "verbal solutions"
When was the last time you got a "loan" from the bank with signing a folder
full of documents?