Chizhy -
I think you are safe posting that link. The TOS of this site states that "Links to government, law and other informative and relevent sites can be kept active." I will leave it.

Several years ago, I had written a couple bad checks before I realized that I didn't have enough money in my account to cover them. I thought the bank would NSF them, but they paid the checks and left me in a negative balance. They charged a $35 overdraft fee for each of the checks and that was it.

After a couple weeks in the negative, they sent me a letter saying that "due to FDIC regulations, we will be forced to close the account if you do not cover these funds," and they gave me 10 days to put money in my account to at least have a zero-balance.

Sure enough, after 10 days they closed my account. Fortunately, they let me sign a payment plan and they gave me 6 months to payoff the amount.

Since the FDIC regulates these banks, they have to follow certain proceedures in order to be insured. One of those procedures is to close an account that may be deemed as a bad asset. After all, if a bank has a number of negative deposit accounts then it really does screw up their books and doesn't reflect the banks true financial position. I would think having a $3000 negative balance, made up of all NSF fees, constitutes a bad asset and your bank would be forced to close the account per FDIC rules.

Like chizhy said, go to the FDIC and fie a complaint. I think they may be interested to know about it.

Ok, here is what I found. These banks are in violation of Regulation E of the FDIC. The consumer can notify the financial institution that transfers by a company are no longer authorized; and
If the consumer notifies the financial institution within two business days after learning of the loss or theft of the access device, the consumer's liability shall not exceed the lesser of $50. I am going to post again with the exact wording taken from the FDIC website. You can copy and paste it into a letter. This bank is as big a crook as the Payday Loan places!!

http://a257.g.akamaitech.net/7/257/2...12cfr205.6.pdf

Can banks come after you criminally if you have a negative balance and close the account?

I would say that it would depend on the circumstances.

I am saying if your account gets negative because of nSF's and you can't repay and they wouldn't close?

Are the NSF's from unauthorized debits that the bank would not stop?

If you don't make arrangements with the bank to pay the negative balance, they will eventually close the account. And if you still have made no attempt to payback the negative balance, they will turn you over to a collection agency who will then pursue payment.

best thing to do report all your checks and bank cards stolen i had a auto payment on a credit card for a service i cancelled but they still wanted tocharge me for one last month i called the credit card company and told them the cardwas lost they closed the account right then and opened a new one for me and said company never got any more money
as for the nsf report them to fdic nd your state banking commision and attorny general with copys of all coraspondance and even one better get your local tv news in on it about how the bank is ripping you off banks dont want bad publicity and people closing there accounts

I went today and paid my $1100 to the collection agency for all of the NSF charges that BOA charged me because of the IPDL's hitting my account and the bank would not close out the account. Boy did that really hurt handing that kind of money over like that. Hell I have 2 kids to feed and still don't have a job, but I guess its better than going on the CR or even worse. I am still going to file a complaint against BOA and hopefully I can possibly recover something from them. wish me luck...lol

emmmmmmm! traci! *great big hug* Holler if you need help! Okie dokie?

Okay, I am trying it one more time. I went in person today to talk to the manager about refunding my NSF fees on the debits that were not authorized. I have been dealing with this since over a week. I went in person to discuss their position, and he wouldn't even talk to me. The lady that talked to me told me that he would call me after 4 becuase he was making "sales calls" and could not be bothered. I said "WTF!!!" is he a manager or a sales rep, and she said that he was on comission. Now, this is a big a** bank. Not a "mom & pop" business.
So after 4 today I got the call, not from the manager, but from the same lady telling me that he manager could not refund my fees because they havve already done it in the past.
Again, I explained to the lady that these debits were not authorized and that according to fdcpa Regulation E is was not liable for anything over $50 and that I was just asking for a $140 refund. She tells me that it is $50 per incident and since I had 4 incidents the rule didn't apply.
Can you believe these people!!!
I have already filed a complaint with FDCPA and will let you guys know if/when I hear from them.
Thanks.

My bank told me that they can not put my account on credits only with out a court order, funny huh. She said that after 25 days in overdraft that it would go to a collection agency. Imagine that! Something that she did tell me that may benefit you is that you can do an unauthorized ACH form if the some one is debiting your account for the wrong amount. You only agreed to debit the original payment amount, so your not really lying. I have a payday lender doing 3 ACH's on one account. All three small ones add up to the payment, stupid, that is 3 NSF everytime they do it. I completed the form on them and no matter what amount they try to debit, they will get nothing. Goodluck!

Not to be nitpicky, but when we quote laws to a business that is supposed to be following them, we should sound like we know what we're talking about. In other words, we need to have our facts straight in order to impress them. When we start jumbling and inter-mixing the facts, then they know that we really don't know.

Regulation E is not part of the fdcpa. (The FDCPA only applies to debt collectors). Reg E is implemented by the Board of Governors of the Federal Reserve and is packaged as part of the Code of Federal Regulations (CFR). Banks and financial institutions have to follow these laws, which come as regulations A through FF. Each regulation pertains to a different Act authorized by Congress.

Regulation B is the Equal Credit Opportunity Act which says a financial institution may not descriminate against credit applicants. ... Regulation Z is our Truth-In-Lending Act, which says they must properly disclose the apr and other terms on a contract. ... Regulation E happens to deal with electronic funds transfers. ... Of interest to those who sign wage assigments, Regulation AA is where the law comes from that says all wage assignments are voluntary and can be revoked at any time.

All of the Federal Reserve Board regulations can be found here:
http://www.federalreserve.gov/regulations/default.htm

Sorry DebtCruncher, I meant FDIC. I was so upset when I was typing it that I said the wrong thing on the post. When I talked to the bank I said FDIC Regulation E, and still they were not able to "help". me.