Negative Bank Balance - What Do I Do?

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Discussion Overview

This thread discusses experiences and concerns related to negative bank balances among Pampered Chef consultants, particularly in relation to handling payments and communication with the Home Office (HO). Participants share their personal experiences with overdrafts, the process of notifying HO, and the implications of being on Money Order status.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant shares their experience of discovering a negative bank balance after two shows processed simultaneously, expressing concern about potential repercussions.
  • Another participant mentions that HO may allow a first-time occurrence to slide and suggests contacting them proactively.
  • Several users discuss whether HO contacts consultants in such situations, with some stating that it is better to reach out first.
  • One participant recounts a past experience where their bank covered an overdraft, suggesting that different banks may handle overdrafts differently.
  • Another participant notes that being on Money Order status for multiple returned payments could complicate future orders.
  • Some participants express concern about the privacy of financial information shared with directors, questioning the legality of such disclosures.
  • One participant mentions a system where their checking account draws from savings to cover overdrafts, highlighting different strategies for managing finances.

Areas of Agreement / Disagreement

Views differ on the handling of negative balances and the communication process with HO. Some participants agree on the importance of contacting HO proactively, while others express concerns about privacy regarding financial disclosures to directors.

Contextual Notes

Participants share personal anecdotes related to their banking experiences and the implications of negative balances on their business operations. The discussion reflects a range of individual practices and concerns within the consultant community.

Who May Find This Useful

Consultants who have experienced or are concerned about negative bank balances and their implications for their business may find this discussion relevant.

lkprescott
lkprescott
Silver Member
Messages
1,232
Uh oh... I went in to check my bank balance this morning and the available balance was in the negative... my last 2 shows hit at the same time and was just shy of the balance available! eep!! I did an instant transfer this morning but now it's showing that one of the shows is back in my account. Will HO just try it again or what trouble am I looking at right now?

:cry:
 
If this is the first time they will let it slide. I would call HO and let them know the money's available now.
 
  • Thread starter
  • #3
*whew*... okay, then I won't panic just yet... Does HO contact the consultant when this happen, does anyone know?
 
lkprescott said:
*whew*... okay, then I won't panic just yet...

Does HO contact the consultant when this happen, does anyone know?
Click to expand...

Yes, they will but it's better to call them first.

PS: They will also contact your director.
 
  • Thread starter
  • #5
finley1991 said:
Yes, they will but it's better to call them first.

PS: They will also contact your director.
Click to expand...

Good to know...

I knew I was cutting it close with waiting for a customer to get her money in (that's what I was short... *smacks forehead*)... but I think I got lax too with how long it was taking for the debits to go through and since they weren't submitted the same day, got surprised that the money got pulled the same day.

Lesson definitely learned there!
 
lkprescott said:
Good to know...

I knew I was cutting it close with waiting for a customer to get her money in (that's what I was short... *smacks forehead*)... but I think I got lax too with how long it was taking for the debits to go through and since they weren't submitted the same day, got surprised that the money got pulled the same day.

Lesson definitely learned there!
Click to expand...
Hmm, that's good to know. I am always usuallyy prompt to deposit before submitting but I always figure they will debit 7-14 days after shipment but ya never know.... and always have the funds avail. just in case they did debit the day of shipment!:eek:
 
I would go ahead and call before HO calls too. Then they know better it was an honest mistake. I know it will work out for you. Keep us posted.
 
  • Thread starter
  • #8
Thanks guys! I've run out of time for business this morning but sent off an email to them, so they can answer in their own time and at least I let them know. I'll keep yous posted.
 
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  • #9
I head back from HO... boy that was fast! So far nothing is flagged in their system so I guess I just wait and see and hope everything's all ironed out and I worried for nothing.
 
I had that happen to me a few months back and the bank went ahead and paid it and charged me the fee for overdraft. Since the bank let it go through I don't think HO ever knew about it. But I don't have overdrafts that often, so that's why the bank covered it, but they still took out their share for letting it slide. Maybe your bank does that too...
 
If you have 2 of them returned to the HO within 2 months, you will be put on Money Order only status for 6 months. That means that you will have to send in your orders and get a money order for each one. Sounds lovely huh?
 
I think they usually try putting it through twice though.
 
urbnk8 said:
I think they usually try putting it through twice though.
Click to expand...

They do and if there are no funds again, then you will hear from HO. They will hold your commission. :( That is when you need to mail a MO.
 
finley1991 said:
Yes, they will but it's better to call them first.

PS: They will also contact your director.
Click to expand...

Why would they let your director (or anyone else) know your financial status? I don't think that is anyone's business.
 
It's because it could affect your status for submitting orders, and then your Director can go over the relevant policies with you.
 
  • Thread starter
  • #16
chefsteph07 said:
I had that happen to me a few months back and the bank went ahead and paid it and charged me the fee for overdraft. Since the bank let it go through I don't think HO ever knew about it. But I don't have overdrafts that often, so that's why the bank covered it, but they still took out their share for letting it slide. Maybe your bank does that too...
Click to expand...

Not sure what this bank will do. It's new to us... we recently dumped a bank who LOVED to screw around with our balances and charge overdrafts. So far, this bank is a lot more responsive and the overdraft fee is almost half of the other bank.
 
  • Thread starter
  • #17
dns2202 said:
If you have 2 of them returned to the HO within 2 months, you will be put on Money Order only status for 6 months. That means that you will have to send in your orders and get a money order for each one. Sounds lovely huh?
Click to expand...

Good to know... I hate money orders, I know, who likes 'em.. LOL... I'm going to keep a better buffer in that account from now on. I'm usually so careful but I grew complacent... not a good thing. LOL...
 
We have a charge card associated with our checking account. If we overdraw, the overdrawn amount gets transferred from the credit card. Of course there are fees and the interest rate is 20+%, so we're really careful, but it's nice to know it's there "just in case".
 
My checking account draws out of my savings account if I over draw.
 
chefann said:
It's because it could affect your status for submitting orders, and then your Director can go over the relevant policies with you.
Click to expand...

Do they just tell them it is on Money order status or do they give details?

I can see telling them that they are on money order status, that could make them want to quit or do the minimum (because it is more hassle), but if they give details (and I understand the directors would KNOW that money order status would mean things have bounced :rolleyes: ) that would not be any of their business - Like the amount, the number of times, things like that.
 
Your Director gets an e-mail even if it's a guest's card declined. It's just so that we can be aware and help you get it resolved quickly.
 
  • Thread starter
  • #22
Well, checked the account online and looks like I got charged an overdraft fee from both my bank AND TPC... which is fine. Both combined is just a little over what my OLD bank used to charge. I transferred more money over though to be WAY more of a buffer than I should need... of course it won't take affect until Monday so I'll be on pins and needles until then. At least this weekend is kinda busy so I shouldn't dwell too much on it.. *sigh*
 
genburk said:
Do they just tell them it is on Money order status or do they give details?

I can see telling them that they are on money order status, that could make them want to quit or do the minimum (because it is more hassle), but if they give details (and I understand the directors would KNOW that money order status would mean things have bounced :rolleyes: ) that would not be any of their business - Like the amount, the number of times, things like that.
Click to expand...

I totally agree! I don't want anyone to know my financial business whether good or bad. I don't see how it is legal for them to divulge that information. Did I give permission somewhere that I don't recall?
 
stacywhitlow said:
I totally agree! I don't want anyone to know my financial business whether good or bad. I don't see how it is legal for them to divulge that information. Did I give permission somewhere that I don't recall?
Click to expand...


I've never had this happen to anyone in my downline so I'm not sure what the e-mail from HO says.

I do know that directors are notified when a show is on hold for someone in our cluster and why it is on hold. I think they tell us so we can contact the consultant and help them resolve it... they sometimes don't know what to do in certain circumstances (declined customer credit card, etc.). Also, I have a few on my team (this drives me CRAZY!) that only check their e-mail once a week if that. This way I can contact them and give them a heads up.

But like I said, I've only been notified if a show is on hold or if someone is going to become inactive.
 
  • Thread starter
  • #25
All is well! TPC finally took the show total out and obviously it went through. All is right with the Universe once more. *whew*It did take them a bit of time to take it out again as you can see by the dates of my posts but I figured no news was good news. And it was!
 

Frequently Asked Questions

What does it mean to have a negative bank balance?

A negative bank balance means that you have withdrawn more money from your account than you currently have available. This can happen due to overdrafts, pending transactions, or fees that exceed your account balance.

What should I do immediately if I notice a negative bank balance?

If you notice a negative bank balance, the first step is to stop any further transactions that could worsen the situation. Check your account for any pending transactions and ensure you understand why your balance is negative. Contact your bank for clarification if needed.

How can I resolve a negative bank balance quickly?

To resolve a negative bank balance quickly, you should deposit enough funds to cover the negative amount and any associated fees. You can transfer money from another account, deposit cash, or receive funds from someone else to bring your balance back to positive.

Will I incur fees for having a negative bank balance?

Yes, most banks charge overdraft fees or insufficient funds fees when your account goes negative. These fees can add up quickly, so it's important to address the negative balance as soon as possible to minimize any additional charges.

Can a negative bank balance affect my credit score?

A negative bank balance itself does not directly affect your credit score, as bank account balances are not reported to credit bureaus. However, if the negative balance leads to unpaid bills or collections, it could indirectly impact your credit score.

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