Can the bank charge fees for an account that has been closed?

[BabyBlueSusie 1]

I recently moved to a new area that didn't have any branches of my old bank, so I switched banks and closed the old account.

I pay all of my bills online, and I recently choose the wrong item from the pull down menu of payment options for one of my bills. So, I ended up choosing to pay with my old bank account, which is closed. Now, I understand that this was foolish, and that the payment should most certainly be returned from the company to whom I was paying, and I will most likely be charged a fee by that company. This I can accept.

What I cannot accept, however, is that my old bank just called me and told me that they are attempting to collect my debt. They are acting as if the account is still open, and charging me a NSF fee, along with the original amount that I tried to pay. ####### I am really pissed. THE ACCOUNT IS CLOSED, how can they charge me for it??? This makes no sense and I really don't want to pay these fees. Is there any way that I can fight this?

[Otto 83]

The account may be closed but your agreement isn't when you use/attempt-to-use the account again.

Their argument will be something like "you closed the account/moved-your-funds, then attempted to use the account which resulted in overdraft fees."

No one wants to pay their fees - but what can you do? I don't want to isn't a valid argument.

Edited October 31, 2008 by Karin und Otto

[payxibka 10,045]

I recently moved to a new area that didn't have any branches of my old bank, so I switched banks and closed the old account.

I pay all of my bills online, and I recently choose the wrong item from the pull down menu of payment options for one of my bills. So, I ended up choosing to pay with my old bank account, which is closed. Now, I understand that this was foolish, and that the payment should most certainly be returned from the company to whom I was paying, and I will most likely be charged a fee by that company. This I can accept.

What I cannot accept, however, is that my old bank just called me and told me that they are attempting to collect my debt. They are acting as if the account is still open, and charging me a NSF fee, along with the original amount that I tried to pay. ####### I am really pissed. THE ACCOUNT IS CLOSED, how can they charge me for it??? This makes no sense and I really don't want to pay these fees. Is there any way that I can fight this?

Since the ACH transaction was generated by your payor (CC company, utility, etc..) with your approval, then I think you are less likely to be successful.... because the bank actually had to settle the transaction the day it was presented, and then had to reject it the next settlement cycle, because of the NSF (does not matter if the account was closed or simply open with a zero balance), so they were out the money for an entire settlement cycle (probably a day) .... It is simply how the ACH system works...

In the end, you generated the transaction... No different than if you had written a check on a closed account

Edited October 31, 2008 by payxibka

[LoriLawless 0]

I know that if you have an account drafted they will still charge you if your account is closed.

so I imagine they do the same whenever you use the account.

[BabyBlueSusie 1]

well what if i tell them that i will pay the amount that i 'tried to charge' and not the fee? it just doesn't make logical sense that if an account doesn't exist, how can it be charged? this is the reason why i closed the account in the first place, to avoid something like this happening

[payxibka 10,045]

well what if i tell them that i will pay the amount that i 'tried to charge' and not the fee? it just doesn't make logical sense that if an account doesn't exist, how can it be charged? this is the reason why i closed the account in the first place, to avoid something like this happening

only the bank can tell you if that is acceptable to them or not... realizing that since you are no longer a customer, they are no longer incentivized to try to do something in order to keep you as a customer

[BabyBlueSusie 1]

well what if i tell them that i will pay the amount that i 'tried to charge' and not the fee? it just doesn't make logical sense that if an account doesn't exist, how can it be charged? this is the reason why i closed the account in the first place, to avoid something like this happening

only the bank can tell you if that is acceptable to them or not... realizing that since you are no longer a customer, they are no longer incentivized to try to do something in order to keep you as a customer

interesting that i am not a customer, but they can somehow still charge me fees...

anyhow, i am going to try it. it can't hurt.

[LoriLawless 0]

well what if i tell them that i will pay the amount that i 'tried to charge' and not the fee? it just doesn't make logical sense that if an account doesn't exist, how can it be charged? this is the reason why i closed the account in the first place, to avoid something like this happening

only the bank can tell you if that is acceptable to them or not... realizing that since you are no longer a customer, they are no longer incentivized to try to do something in order to keep you as a customer

interesting that i am not a customer, but they can somehow still charge me fees...

anyhow, i am going to try it. it can't hurt.

All you can do is try, but I'm sure you'll find they had it in the agreement on the account that you'd be charged.

No harm in trying though.

[Sister Fracas 5]

Since the ACH transaction was generated by your payor (CC company, utility, etc..) with your approval, then I think you are less likely to be successful.... because the bank actually had to settle the transaction the day it was presented, and then had to reject it the next settlement cycle, because of the NSF (does not matter if the account was closed or simply open with a zero balance), so they were out the money for an entire settlement cycle (probably a day) .... It is simply how the ACH system works...

In the end, you generated the transaction... No different than if you had written a check on a closed account

Yup...to them, you tried to have them pay out for something when there were no funds.

Edited October 31, 2008 by Sister Fracas

[Otto 83]

interesting that i am not a customer, but they can somehow still charge me fees...

anyhow, i am going to try it. it can't hurt.

Good luck...my experience is it will fall on deaf ears, then will go to collections (probably third party at some point), then will end up on your credit report.. nagging little SOBs..

[NickD 203]

Remember when you could cancel a check for free or no charge, not that far back. Now your bank can charge an overdraft fee, even a cancellation charge, plus other expenses, it's all written clearly in your contract in large 2 point print, well you may require an electron microscope to read it, but it's all there.

[payxibka 10,045]

well what if i tell them that i will pay the amount that i 'tried to charge' and not the fee? it just doesn't make logical sense that if an account doesn't exist, how can it be charged? this is the reason why i closed the account in the first place, to avoid something like this happening

only the bank can tell you if that is acceptable to them or not... realizing that since you are no longer a customer, they are no longer incentivized to try to do something in order to keep you as a customer

interesting that i am not a customer, but they can somehow still charge me fees...

anyhow, i am going to try it. it can't hurt.

A bank robber isn't usually a customer and takes something from the bank that does not belong to them... in your situation, you generated a transaction that the bank PAID on your behalf with funds that did not belong to you....

[TayRivers 4]

well what if i tell them that i will pay the amount that i 'tried to charge' and not the fee? it just doesn't make logical sense that if an account doesn't exist, how can it be charged? this is the reason why i closed the account in the first place, to avoid something like this happening

only the bank can tell you if that is acceptable to them or not... realizing that since you are no longer a customer, they are no longer incentivized to try to do something in order to keep you as a customer

interesting that i am not a customer, but they can somehow still charge me fees...

anyhow, i am going to try it. it can't hurt.

A bank robber isn't usually a customer and takes something from the bank that does not belong to them... in your situation, you generated a transaction that the bank PAID on your behalf with funds that did not belong to you....

You made the mistake not the Bank so why should the bank pay the cost of your mistake? We all make mistakes and we all must pay the costs involved with the mistake. Suck it up and pay the bill, and then go delete the incorrect payment details from you on-line payment screen.

[BabyBlueSusie 1]

I know that I made a mistake. I said this earlier, and I will gladly pay the fee that my credit card company will charge me for the rejected payment. I don't understand however, why the payment goes through and then is rejected when the account doesn't even exist anymore...

Why isn't it flat out rejected, the same it would be if I entered an entirely bogus account number or made a mistake while typing in my account number? The account no longer exists, this is my gripe. The bank just wants to find bullshlt reasons to charge ridiculous fees.

And yes, I'm a bank robber. That was cute.

Edited October 31, 2008 by BabyBlueSusie

[payxibka 10,045]

I sorry you think taking money from someone that does not belong to you is not consider "theft" but passing bad "checks" is a crime in many states and in essence is what you did .....

Edited October 31, 2008 by payxibka