Bank screwed up. Help?

mikesboo23 · December 2009

I hope this is understandable. I just need to know what my options are in this case.

I've only used paypal twice ever and the first time was over a year ago. I tried to use it last week to buy something on ebay for DH and I didn't realize that it still had the info for a bank account that I closed. 2 days later I was extremely confused when I got a notice that the payment had been rejected. When I checked my online banking, the account that I had previously closed was showing up again (hadn't for a year) with a -$70 balance. I know the paypal thing was my mistake but I closed that account so it should not have re-opened or caused an overdraft.

When I contacted my bank they insisted that I never closed the account. They said that I came in to the bank and cashed a check to empty out that account and that's why it dropped off my online banking, because it was inactive. They claimed to have a copy of the check with my signature.

1st: I used online transfer to empty that account before closing it. There wouldn't be any check and no signature. I have proof of the transfer in my online banking.

2nd: They do have some kind of record that I was in the bank that day but I didn't make any other transactions so why else would I have been there? They kept saying that they have in their records that I was there that day to cash the aforementioned check and that's all I did.

They are saying if I have the signed paper from when I closed the account then they will give my money back for the overdraft but that was over a year ago and right when we were moving, I have no clue if I still have it or where it would be.

So what would you do? I want that $70 back!

nicoleabrock · December 2009

I would ask to speak to a manager at the bank. Banks usually "try" to provide good customer service so I would explain your situation to a manager and see what they can do for you. I hope it works out for you! Good luck!

kelnyc · December 2009

As someone who worked for several banks over the course of ten years, I can tell you this: if you made an online or debit purchase using an old account, even if it was closed, the bank account will reactivate in 99 out of 100 cases. That's because, since the process is all electronic, the computers can't tell each other that the account is closed and to go back to you for another method of payment. Even if the account was properly coded as such (which the bank is clearly saying it wasn't, though their reasoning for the lack of "closed' status may not jive with what you remember... and you unfortunately don't have much in the way of proof), it would probably go through regardless. If you're really lucky, you can speak to a bank manager and they can go about the process of rejecting the transaction after the fact, but Reg E laws say that once you clicked to have that payment go through, you are authorizing it to come out of the account and suffer the consequences if the money is not there for whatever reason. I know that's not what you want to hear, but that's the deal. I hope you get someone really nice to talk to! GL!

Karen2905 · December 2009

kelnyc:
As someone who worked for several banks over the course of ten years, I can tell you this: if you made an online or debit purchase using an old account, even if it was closed, the bank account will reactivate in 99 out of 100 cases. That's because, since the process is all electronic, the computers can't tell each other that the account is closed and to go back to you for another method of payment. Even if the account was properly coded as such (which the bank is clearly saying it wasn't, though their reasoning for the lack of "closed' status may not jive with what you remember... and you unfortunately don't have much in the way of proof), it would probably go through regardless. If you're really lucky, you can speak to a bank manager and they can go about the process of rejecting the transaction after the fact, but Reg E laws say that once you clicked to have that payment go through, you are authorizing it to come out of the account and suffer the consequences if the money is not there for whatever reason. I know that's not what you want to hear, but that's the deal. I hope you get someone really nice to talk to! GL!

I vote you our Oct 09 Financial Consultant.

kelnyc · December 2009

Karen2905:

I vote you our Oct 09 Financial Consultant.

Thanks Karen! I'm always happy to share any wisdom and would gladly accept your nomination. Smile

Bank screwed up. Help?

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