Urgent questions - Freeze on account and direct deposits

i know someone will come along to help you who is way more experienced than i am, but i don't want your question to feel ignored.
i personally neevr heard of a block that blocked debits but i'm no expert so don't go by me.
Couldn't payroll stop the deposit? i had to do that but am ending up giving most of this week's pay to the bank anyway :(
good luck, keep us posted.

Hi
I just went through the same situation...I bank with Woodforest....I went 3 direct deposits with a negative and had nothing left fpr me when the money went in...I called the bank,and they put a freeze on my account,however she told me that direct deposits will still come in but nothing can come out...they closed my old account and made the negative a loan for me and opened a new account...they were very understanding.I wish I would have called them weeks ago
I stopped the direct deposit to the old account and rerouted it to the new one.Now i will be weks catching up and paying everything.Hope this helps....good luck I know what you are going through

Thanks for the information. They put my account on a total freeze, no activity whatsoever allowed - no debits, no credits, no deposits, nothing. So, from what they told me, the direct deposit should be rejected.

I called this morning and my balance reflects that my direct deposit did NOT post as it normally would have. HOWEVER - the lady I spoke with said that the bank has the option of forcing it through since my account is negative! So... now I'm freaking out. It normally would have posted by 6 AM, now it is 9 AM and nothing there... so I can only hope it was rejected. I called my branch manager and had to leave a message.

I did talk to our payroll clerk and she said to wait a couple of hours and she'll cut me a paper check.

But now I'm scared the bank will suddenly decide to force my deposit through and I won't have any money!

One question, if you disputed the charges and the bank reversed them, why is your account still overdrawn? If the bank reversed the charges, then they shouldn't be charging you O/D fees.

There were legitimate OD charges due to purchases/bill payments we had made, that hit at the same time as the PDL withdrawals, and sent us spiraling into OD. Even with reversing the bad charges and some of the fees, we're still in the red.

More updates - talked to my branch manager. Deposit hasn't posted - apparently in this situation with a frozen account, all transactions (including deposits) will immediately reject, but then someone somewhere at the bank has the option of "force posting" them. Since my account is negative, she said they may take that into account and force-post it. They noted my account NOT to post the deposit, and the branch manager said that if someone did happen to force-post it, I can call her and she'll immediately reverse it back to the payroll company. I didn't know they could do that! The payroll clerk is here writing me a paper check as we speak so I am good to go and can pay my bills and put a good chunk towards the bank overdrawn balance.

Thanks for all the help!

But if those PDL posts caused the O/D, I would try to get the fees reversed b/c you did not O/D the account. It was b/c of the PDL's.

which bank are we talking about here?

It is Bank of Texas.

Another update: bad news.

Had a call from the branch manager this morning. Since our account is overdrawn, they cannot reverse the direct deposit as they said they could! So, now that's gone into my account which is still OD - and I've already cashed and used my paycheck from my employer. So, my bank account is still slightly overdrawn, and I only have about $100 left in cash to my name until we get paid again. But now my employer has paid me twice, so I now owe them $1K for one of my paychecks! I'm totally freaking out. I don't know how long it will take the payroll company to figure out that the deposit posted - I won't be able to repay my employer until the 15th at the earliest!

I will tell you from experience that my old band did not reverse hardly any of the overdraft charges, even with me disputing the pdl withdrawals. When I closed my account, they cleared about $200 worth of charges, but not because they wanted to but because we raised 60 kinds of you know what. It really didn't matter to them how the OD charges came to be, because that is how they make money.

Ask your empolyer to stop payment on the check. they should have done so immediately once they issued you another check.

Most banks will not return a direct deposit if an account is overdrawn. It is rediculous that you were misinformed and told that they would. I would defnintely start making complaints to the corp headquarters and the OCC

Even if the OP employer put a stop payment on the check, she will still be responsible for paying back the place where she cashed the check. Then the issue could get out of hand.

I say she should just tell the employer what happened and work something out with them. They'll probably take it from her next check. Ask them if they'll take it out over a couple of checks so you won't be caught with no money over the next few weeks.

Good luck. Hope everything works out!

Well, thanks for all the info. So far, my employer has not received anything back or said anything. I am really scared, though, as I have NO money to pay anything back right now - since they deposited my paycheck into an overdrawn account and it was instantly gone! I will get paid again on the 15th so I guess my employer will just keep that check, once I tell them what has happened. I'm too scared to say anything at this point - what if they demand I repay them immediately?

The most annoying thing of all of this - I had asked our accountant to stop my direct deposit and give me a paper check well over a week before this happened. The deadline to stop it was Friday and I asked her on a Tuesday. She said not a problem and she'd take care of it! I went in to remind her the day before payday, and she says she just forgot. She even pulls out a printed copy of my email and says, "Yep, there it is. I just forgot to do it." WTF? This whole thing could have been avoided if she'd just remembered.

I would tell your employer now and work out a repayment schedule. If they take your whole check on the 15th, you'll be screwed (not have any money until the next payday).

BTW - did your employer stop payment on the direct deposit when they cut you a paper check? If so, your bank account will be o/d again.

No, they didn't do a stop payment. They just let it go through under the assumption my bank would reject it. The accountant told me there was nothing at all they could do to stop it.

Okay, I need to find out how to address this with my employer. I was not completely honest with them about my reason for needing a paper check - I told them that I had closed the checking account and opened a new one. The payroll clerk came to me today and said that the deposit had not yet been returned, and asked me about it, I told her I called the bank and they had not posted it to me, or returned it, and it could be in limbo. Basically, I lied. I feel terrible about this, but I was so afraid they were going to ask for a $1K check, when I have $14 left until payday!

What should I do here? I cannot tell my employer that I made all of this up and it did post, but my account is overdrawn. (Even after the check, my account is still $400 in the negative.) I wonder if I could tell them that it did go through but since the account was closed, they are mailing the balance to me, and ask if I can repay in installments deductions of my next paychecks? I dont' think anyone here has ever been overpaid and this is not a huge company - so I am wondering if they're just going to hold my next paycheck?

I know I am being dishonest. I intend to pay my employer back, and if they just hold my next check I guess I'll live, but I need to find a way to address this so I don't sound like a lying employee! Someone help!

Can anyone tell me if they have had any experience with Bof A in closing an account. I want to close my account asap due to pdl ACH debits that will be occurring on 10/17. Will BofA reopen my account for this type of thing or will it remain closed.

I know all employers are different, but I had a situation one time where my employer paid me for more overtime than what I actually did. I didn't notice the extra money right away because I have direct deposit. Well, after all my checks that I had wrote, cleared the bank, I was wondering why I had all the additonal money. Well, I called the bank and they told me how much my employer deposited. At first, I wasn't gonna say anything to my employer, but then I figured it would come back on me sooner or later. Long story short, my payroll dept. set up a payment arrangement to where they would deduct $50 a paycheck until it was all paid back.

By the way, I didn't know how much my paycheck was for because I also have online pay summary along with my direct deposit. I don't receive a paycheck stub, but one can be printed if needed.

Well, my bank still refuses to return the deposit, and my employer is asking me about it now. They are going to try to get the payroll company to reverse it. I am not sure how that will work, as the account is still overdrawn, though!

I filed a complaint with the OCC and I am really hoping they can do something. I feel like there's no point to putting a bank account on "no deposits" if the bank can just pick & choose transactions to post. Also, I am angry that I specifically requested a note on my account NOT to post the deposit, explained the situation, and then they did it anyway and assured me it could be reversed, then changed their minds! I am really mad about this. And of course now I can't make deposits to bring my account balance positive, because I have to pay back my employer! URHG!!!!!!!

Well my employer called the payroll company and has had a trace put on the direct deposit -s o I assume they are going to find out that it was in fact deposited to my account. I don't know how long this takes or what it will show as, or what I'll do.

So...What happened?

Well the trace came back and showed as deposited. I talked with my employer and while they were understanding about the situation, they would not let me pay the amount out or anything in installments. So, they are just going to withhold my entire year-end paycheck (Dec 31). So basically, I got paid Dec 15 and won't get paid again until Jan 15. (In fact, my boss was just in my office reminding me that they're cutting payroll today and I don't get paid this month.) Sucks, because my mortgage is due on the 1st... but, oh well. My employer would not work with me and the bank lied about reversing the deposit, so I guess this is just how it goes.