Bank One charging me $112 for insufficient funds on a closed account!

[Lucky]

How is this possible? I made two paypal transactions last week. One was a payment drawing partially on my paypal balance, and partially from my bank account. The other was a transfer to paypal from my bank account. For each of them I had forgotten to switch (in my profile) the primary bank account to draw from to my new account. So when paypal attempted to pull funds from the default bank account, it was trying to pull funds from a closed account. (I had just forgotten to not make it default in my profile).

So almost immediately afterwards, I realize this. Call paypal, but they cant stop the transactions midstream. Oh well, I'll just wait for my bank to deny them, I thought. Anyways, today I got two letters, each charging me $56.00 for insufficient funds. Now why would Bank One charge this on a closed account? You'd think they would immediately deny the attempt, not attempt to process it as if it were an open account.

Anyways, I apparently had ~$70 dollars in the account, just sitting there. (must have gotten a refund from someone). But now my balance is -$40. What do I do? Am I correct in thinking that Bank One should not have charged me?

 

[Mr.IncrediblyBored]

Originally posted by: Lucky
Anyways, I apparently had ~$70 dollars in the account, just sitting there. (must have gotten a refund from someone). But now my balance is -$40. What do I do? Am I correct in thinking that Bank One should not have charged me?

If you closed the account how did you have $70 sitting there? Can the bank just reopen your account without your knowledge/approval?

 

[Adul]

call and bitch and moan. claim it was paypals fault for attempting to witthdraw from the wrng acount

 

[DaveSimmons]

If you closed the account how did you have $70 sitting there? Can the bank just reopen your account without your knowledge?

Exactly, "abandoned" is not the same as "closed." Did you ever notify the bank in writing to close the account and cut a check for the balance?

But $56 for NSF is an insanely high fee.

 

[kranky]

Complain just in case it works, but I'm sure that somewhere in the fine print of your account agreement they are covered.

Banks are trying hard to increase their income from such "fees" because it's a lot easier than hustling up new loans and checking account customers. They figure as long as all of them are charging these fees most people will just put up with it.

 

[Lucky]

Originally posted by: DaveSimmons

If you closed the account how did you have $70 sitting there? Can the bank just reopen your account without your knowledge?

Exactly, "abandoned" is not the same as "closed." Did you ever notify the bank in writing to close the account and cut a check for the balance?

But $56 for NSF is an insanely high fee.

Like I said, I'm not sure. I thought I had pulled all the money out, but perhaps I had something refunded to my account. I'm betting that's the case. I closed the account by calling them at their 1-800 number and telling them I wanted to cancel the account.

I guess I'll call, but I'm still not understanding how they could charge me on a closed account. they are also threatening (in the letter) to charge me additional if I dont cover this amount within 5 days. Problem is that I cannot deposit to the account in any way; the account is out of ohio and bank one of illinois does not have access to that account. So I might even be charged more???

 

[d33pt]

yeah so after you got all that money jacked on paypal you still continue to use it...real smart

 

[Lucky]

Originally posted by: d33pt
yeah so after you got all that money jacked on paypal you still continue to use it...real smart

Considering this situation has nothing to do with that, and I'm at fault here, I fail to see why you even need to bring that up.

 

[RossMAN]

I hope you were smart enough to write down the date, time, phone number and who you spoke with at Bank One when you called to cancel your account.

Otherwise you have little or no recourse but damn $56 in NSF fees is bitchin expensive.

 

[Lucky]

ross, does that response mean that they should not have been able to charge me the fee if in fact my account is cancelled?

 

[gopunk]

Originally posted by: kranky
Complain just in case it works, but I'm sure that somewhere in the fine print of your account agreement they are covered.

Banks are trying hard to increase their income from such "fees" because it's a lot easier than hustling up new loans and checking account customers. They figure as long as all of them are charging these fees most people will just put up with it.

only way to combat it is to complain a lot to tie up email and phone time, thus making it cheaper for them to just get rid of the fees

 

[Lucky]

up for more thoughts.