If you have ING Direct’s “Electric Orange” checking account with an overdraft line of credit, check your account if you haven’t done so recently. A number of readers commented today that their overdraft limit has been reduced or eliminated over the last few days.
Divine responded to an earlier post about ING Direct closing customer accounts for bad credit:
Banking Deal: Earn 1.00% APY on an FDIC-insured savings account at Ally Bank.
I have also had my overdraft changed from $250.00 to $.00. This happened today. I logged into my account yesterday and it was there. I was a little worried so I called up and was told they check my credit report periodically and that was the reason why. The agent did not say anything about my account was going to be closed.
ING Direct’s latest terms of service explain that credit reports are checked occasionally, and the bank may decide to limit overdraft lines of credit based on the latest data.
You shouldn’t rely on overdraft protection; rather, strive to write checks only for what you have in the bank, never beyond your real balance. But mistakes can happen, and if you’re used to having a line of credit that suddenly disappears, you could find yourself in a sticky situation.
I received an email today stating that my account was OD by $10.00. I went into my saving to transfer the funds and only then realized that my OD has gone from $1,000.00 to $25.00. Called and got the same response, they are trying to help me save money and letters went out last night. I told the agent that it would have been nice if I received the letter first.
Any changes to your account should come in writing, 30 days before the changes are put into effect. This process of makeing substantial changes without warning is not the way business should be done. This is a poor policy.
Check your account to make sure you’re aware of any changes.
Updated September 24, 2015 and originally published October 10, 2007. If you enjoyed this article receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.