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tukkitrocks79 · #17 07-25-2007, 07:21 AM

I started another thread with this information, but Goudah asked me to post this information in this thread. Hopefully it will be of some help!

My Bank Saga

I just wanted to post this in case it can be of some help to some of the folks on this forum. In the process of freezing and closing my bank account I learned quite a lot about the ACH debit process and I would like to share what knowledge I gained. Hopefully some of you can use this as "ammo" when you go to your bank, documents in hand, to keep the crooked PDL companies out of your bank account.

First: Make sure you send out ACH revocation forms before you make any attempt to close / freeze / debit block your bank account.

My first mistake: Early in the week, knowing full well that I would be closing my bank account by the end of the week, I foolishly used my Check Card to purchase fuel at a service station. Stupid. I'm so used to doing it I just swiped the card without even thinking about it. After that i said to myself, "crap, that was dumb." It turned out to be the biggest complication in the matter. As some of you may know, when you purchase fuel with a check card (or book a hotel room, as well as some other particular purchases like restaurants), a "hold" is placed on the account for a certain amount, and the actual transaction is not processed until it is officially sent by the retailer to your bank. Well, this particular service station happens to be the absolute slowest to present the transaction. My bank account had enough funds in it to cover the cost of the fuel and would thus be at a 0 balance - however, I could not close the account until the transaction for the fuel was processed. This happened Thursday at midnight, while the PDL companies were going to be putting their debits in on Friday morning. Well, guess what, I looked at my account online Friday morning and my available balance read (-$1,165) due to 12 ACH debits that had been posted. Now I am in trouble, right?

LESSON LEARNED: WHEN YOU KNOW YOU ARE GOING TO CLOSE YOUR BANK ACCOUNT, NEVER, EVER, EVER USE YOUR CHECK CARD! GET YOUR ACCOUNT BALANCE TO $0 AND KEEP IT THERE!

Next: I had hoped to handle the freezing of my account via telephone with the customer service department. While they were very helpful, they were unable to ultimately help in closing the account. According to them, because the ACH debits had been sent, the account status could not be changed. Even though the account was truly at a $0 balance.

LESSON LEARNED: DO NOT WASTE YOUR TIME WITH CUSTOMER SERVICE ON THE PHONE. GO IMMEDIATELY TO THE BRANCH, DO NOT PASS GO, DO NOT COLLECT 200 DOLLARS (ha, that's exactly what I'm telling these PDL people)

Step 3: Go to the branch. Take all documentation. Hopefully your bank won't make you present it (mine did not) but if they do, you have it. Do not leave the branch until you get the answer you need to hear: the account is closed / debit blocked / frozen.

For example, my bank told me that I would have to fill out a form for their internal use that would block the ACH debits. These forms cost $25 each to submit. When I balked at this, the customer service representative said "Let me talk to the ACH department."

KNOWLEDGE: BANKS HAVE AN ACH DEPARTMENT! AN ENTIRE DEPARTMENT DEVOTED TO TRACKING / MONITORING ACH WITHDRAWALS AND DEPOSITS. ASK YOUR REP TO CONTACT THE ACH DEPARTMENT!

The representative speaks to the ACH Department, who informs her, "these debits have not yet been 'hard posted' yet, so just put the account on frozen status and they will disappear."

LESSON: JUST BECAUSE THE DEBITS ARE SHOWING UP DOES NOT MEAN THAT THEY CANNOT BE RETURNED TO SENDER. HAVE YOUR BANK FREEZE THE ACCOUNT IMMEDIATELY. THE DEBITS WILL BE RETURNED AT THE CLOSE OF THE BUSINESS DAY (OR THE NEXT BUSINESS DAY) AND YOUR ACCOUNT CAN BE SUBSEQUENTLY CLOSED.

I apologize if this is long winded, but I wanted to share what I learned through the process of closing my account. I have been with this bank for a while now, and I have other accounts with them. They were very understanding and willing to help me. I actually opened a new checking account at the same bank today with no problems whatsoever. (I know that you are supposed to go to a totally new bank, but I received multiple assurances that I would be protected. Since I have had such a good relationship with the bank, I felt confident enough to open the new account.)

THE MORAL OF THE STORY: DO NOT LET YOUR BANK SCREW YOU AROUND. THEY CAN HELP YOU. BE INFORMED, BE THOROUGH WITH YOUR DOCUMENTATION, ASK QUESTIONS, GET YOUR BALANCE TO $0, AND GET THAT ACCOUNT FROZEN. THEY CAN DO IT FOR YOU.

If this helps only one person out there, then I am glad that I posted this. Good Luck to all of you, I am going through what you are going through right now.

goudah2424 · #18 07-25-2007, 07:24 AM

Thank you very much Tukk!

pokogeo · #19 07-25-2007, 08:08 AM

Yes Thank you! My story is mildly similar, and I don't think I've shared it in one go (just bits and pieces) So I think I'll add mine.

After checking out this forum, I called my bank account. I asked for loans to be blocked. They too said "$25 each" but they also told me, they can't do it because I was already overdrawn. They'll let me overdraw myself, but they can't do it themselves (unless it is to charge me fees from overdrawing it myself). During that call I had also reported a bank card missing. I was lucky to not have it so I didn't accidently use it... Because I probably would have. But I do have to wait for other things to clear.

Well that caused me pain.... There was no way I was going to be able to get money in there until payday, and at least one of those PDLs always 'posted' before my paycheck, even though the bank account online shows it after and the bank charges me a fee anyway.

I'm sent a call from someone in a different department who can help me more. I explain my situation and request for a hard hold on the account. He is willing to let my rent check post (keep in mind I'm in the negative already) because my next paycheck will cover it. I was lucky in that respect I guess. Make sure you check with your bank, it is possible they can hold everything except certain things. I asked him to close it (because I had moved out of the state and it was a state credit union) when the accout was in positive and send me the rest of the money. He agreed.

Payday comes. I check online in the morning. My paycheck went through. I have another $25 fee, a PDL has come in and sent back...twice. It came in before my paycheck again, so they charged me a fee. It also hadn't been closed yet. I give them a call, but the guy I originally talked to was not in, I talked to someone else. They finally sent me my money. I was very glad to be rid of my bank... I don't even want to think how much I paid them in fees. Money that if I had I probably would have survived.

Lesson Learned: Never putting my account online ever again. Cash and Money Orders only... I won't even give my landlady a check as check numbers can be easily used online now-a-days.

As a bonus, when I brought the check into my new bank, it looked suspicious as they didn't even have their address or any contact information, just a logo. I've been lucky my new bank is understanding, opening an account despite my SSN being on the chex system (not me, just my SSN), and taking a check that looked iffy.

Now I've got bills coming due, a lot which I can pay online and take care of them easier. Especially since they are due immediately after I get my check, not enough time to send them a money order. I might try the prepaid card.

So that is my story. Hopefully you can learn something from it too

tukkitrocks79 · #20 07-25-2007, 08:27 AM

Ugh. I'm sorry to hear that pokogeo. Banks can be so difficult at times. It all depends on if you are talking to the right person and ask the right questions, I guess. Hopefully all of the painful experiences from people here will keep others from ending up in the same situation.

pokogeo · #21 07-25-2007, 09:11 AM

Exactly, so thank you for sharing your story. I'm sure there has been and will be many more with similar stories. At least people can know what to expect when it comes to dealing with closing their bank account.

laura19544 · #22 08-13-2007, 08:58 PM

I did go to the bank and speak with a branch manager today. I told him of the situation and he did put some stop payments on these loans for me. I told him that they could come in with other names...other amounts and drafts as well a ACH debits. We discussed the pros and cons of closing this account and I have checks from retirement and work that would have to be changed. However it is so close to the end of the month if I closed my account my annuity (retirement) would be returned. I can't afford that..with the government it would be another two weeks before I would get it. He also informed me that by closing my accounts with outstanding debits (I have other bills debited to my account)it would cause alot of problems. My best bet is to watch my account on line and if I find anything that is related to these stop payments to let them know and they will not process it. I believe him I have been with this bank over 30 years.

goudah2424 · #23 08-14-2007, 06:47 AM

I hope it works for you . . . . Stop payments usually don't work, because these companies are so sneaky.

Did you ask him about putting the account of deposit only? That way your retirement will still go in, but nothing can come out without you physically going to the bank and taking it out.

frogpatch · #24 08-16-2007, 08:12 AM

My bank put my account on deposit only. When collections agreed to return the NSF Fees they took it off deposit only. It was still in the red though. Route66 and Cashnet tried to withdraw and I got hit with 2 more NSFs. I went to a branch manager and she froze it completely. Next thing you know I get two more NSFs because Cash Net and Route66 tried again. I am calling fraud division today. We will see what happened.

pokogeo · #25 08-16-2007, 02:55 PM

Frogpatch there is something up, that is not so good, with your bank. How can stuff come through if it is frozen? Your bank is ripping you off charging you fees even though they know the situation. As soon as you are able to get a new one. Don't stand up for that kind of bs!

nurseboy2020 · #26 08-22-2007, 04:57 PM

Does any one have advice for me.. Texas. Bank ofAmerica

blueangelkc80 · #27 09-11-2007, 02:34 PM

I know from my experience with fifth third that Sassnlucy is right in that they are not the friendliest bank to deal with, I have had so many problems with them that a month or so ago I opened a new account with WAMU but havent had a chance to transfer my direct deposit. In regards to the ach debits and even regular checks, my experience has been that for the most part they pay the debit or the check and charge you an overdraft fee. Which then all the sudden adds up to hundreds of dollars due to the way they calculate things and process debits

submarinesailor · #28 10-06-2007, 03:02 AM

finsfan13, You're right, it could lead to some trouble. But I'd rather deal with my bank than deal with some virtual scumbag. At least with the bank I can talk to them face to face.
I use a credit union and didn't have any problems closing my account. I told them what I was doing and when I was doing it. I even told them that I had some legitimate checks that might bounce if they weren't cleared in time. I gave them the check #s, etc and they manually cleared them from the new account.
If any of the payday loans were to go through on the new account the bank would be paying it back themselves. The Navy would get involved, etc and they would work it out. I wish everyone had the same support structure that I do. I've made it a mission of mine to do everything I can possibly do to help people out with this. Of course I can't pay their loans for them, but I'm doing research, contacting different organizations, I'm even writing my congressman. There has got to be something we can do! One thing that we all can do, we can contact our state government and ask them to change the laws when it comes to the wage assignment thing. I don't know, but there's got to be something we can do. Oh, something else I'm doing, anytime I see an ad for an illegal payday loan company, I'm writing the magazine, paper etc. I just did that today. The Navy Times, believe it or not, advertises payday loans! I really blasted them for this. Who knows if it will work, but it's a start.
Good luck everyone!

Going Deep

latoya_992003 · #29 11-07-2007, 07:57 PM

my account is $611 overdrawn due to nsfs from ipdls can i still close my account or do i have to wait to pay that off i have ipdls that will be due next week but i have already switch to another bank what should i do

goudah2424 · #30 11-08-2007, 07:00 AM

Normally the bank will not let you close an account that is in the negative. But, you may be able to put one of the blocks or holds discussed in this thread on the account to stop any future transactions.