Overdraft Letter of Explanation

OVERDRAFT LETTER OF EXPLANATION

Date:

Account Holder Information

RECITALS

WHEREAS, the undersigned Account Holder maintains a deposit account with the Financial Institution identified above under account number ; and

WHEREAS, the Financial Institution has recorded one or more overdraft and/or returned-item postings to the referenced account on dates set forth below; and

WHEREAS, the Account Holder submits this written Letter of Explanation to provide factual background, describe corrective measures, and propose a resolution to the outstanding overdraft balance(s).

EXPLANATION OF OVERDRAFT EVENTS

Please provide a clear, chronological narrative explaining the circumstances that gave rise to the overdraft(s). Include any relevant causes such as timing of deposits, unexpected withdrawals, employer payment issues, authorized payments, or processing errors.

ITEMIZED OVERDRAFT OCCURRENCES

List up to five overdraft/returned-item postings. If more space is required, attach additional pages and indicate attached documents below.

PROPOSED RESOLUTION AND PAYMENT TERMS

Total outstanding overdraft principal and fees as of the date of this letter (estimate): $

Proposed first payment date:   Late fee for missed payment:

I acknowledge that any payment arrangement is subject to the Financial Institution's approval and that failure to comply with agreed payments may result in further collection action, fees, and reporting to internal account records.

CORRECTIVE ACTIONS TAKEN

Please indicate which measures have been implemented to prevent recurrence (check all that apply):

I enrolled in overdraft protection or transferred a line of credit to cover shortfalls

I changed or confirmed direct deposit timing or source

I implemented budgeting measures and transaction monitoring

Other (describe):

TERM, TERMINATION, CONFIDENTIALITY AND AUTHORIZATION

Term and Termination: Any payment arrangement described in this letter will remain in effect until the outstanding balance described above is paid in full or until the Financial Institution provides written notice of termination. The Account Holder may terminate a proposed arrangement by providing written notice at least days prior to the desired termination date.

Confidentiality: The Account Holder understands that communications and documentation provided in connection with this Letter of Explanation will be maintained in accordance with the Financial Institution's normal recordkeeping practices. The Account Holder requests that the Financial Institution preserve confidential treatment of personal financial information to the extent permitted by applicable law and bank policy.

Authorization and Certification: By signing below, the Account Holder certifies under penalty of perjury that the information contained in this Letter of Explanation is true, complete, and accurate to the best of the Account Holder's knowledge. The Account Holder authorizes the Financial Institution to verify the facts set forth herein by inspecting account records and obtaining such additional documentation as may be necessary to review the matters disclosed. The Account Holder further understands that any material misrepresentation may subject the Account Holder to civil or criminal liability.

ATTACHMENTS

Supporting documents attached (check all that apply):

Bank statements

Pay stubs or employer verification

Receipts or merchant documentation

Other attachments described:

GOVERNING LAW; ENTIRE AGREEMENT

Governing Law: This Letter of Explanation shall be governed by and construed in accordance with the laws of the state in which the Financial Institution maintains the subject account, without regard to that state's conflict of law principles.

Entire Agreement: This Letter, together with any attachments expressly incorporated by reference, constitutes the entire written statement regarding the matters addressed herein and supersedes prior written statements made to the Financial Institution relating to the overdraft events noted above.

CERTIFICATION

I certify that I have reviewed this letter and that the statements I have made are true and correct to the best of my knowledge and belief.

Sign Now