Can they do this legally?

Question

I have a monthly fee that comes out of my bank account at the end of every month automatically. Last month they charged my account twice without telling me first. I didnt find out until that caused my rent check to bounce and I got an eviction notice. When I went into get the charge reversed, they let me know that it was making up for 4 months ago when the place changed ownership. They had missed charging a few people and were just getting around to it. Can they legally take this money out without letting me know first? Now I own my bank an overdraft fee and my apartment complex a returned check fee. The total is almost $100. Can they do this? Is there anything I can do about it? The contract I signed said they would take out a certain amount on a certain date. It never said anything about if THEY forgot to charge it one month.

I have no choice but to live that close to the edge, I wish I did, but I live in silicon valley... ha ha ha... actually living here is a joke. And yes, I do make more than $1000 a week. I cant imagine not having a bank account! Thanks for all the answers. This has been a real pain for me! Oh, and it was a tanning salon that charged the extra money. my bank only charge the over draft fee ($30) and my appartments charged me a returned check fee ($60)

Oh no, I hadnt noticed they missed a month! I dont write down all transactions! (I know, irresponsible, but this is the first time anything has happen like this!)

Answer 1

When you sign debit authorizations, you agreed to what just happened to you.

Just because they forgot one month doesn''t mean they aren't still entitled to the money. You signed an agreement, and it is your responsibility to monitor your account to make sure that you are being debited correctly. You "knew" about the debit when you signed the agreement. They are under no obligation to "let you know first".

Let me put it this way .. If you forgot to cash one of your paychecks for a few months, does your employer not owe you the money?

If this is the first time you have ever overdrawn your account, you may be able to get your bank to reverse the overdraft fee as a courtesy.

Answer 2

That really sucks, but I think they have the right to do it. Even though they forgot to take the fee out a few months ago, I would have marked it out anyway, because somehow they always seem to catch it eventually. We had a problem like this a few years ago, so what we do now is just leave a "buffer" in our account (we have like $25 more than what our balance really is) This works for us. All those fees added up can really kill ya.

Answer 3

The question arises, "Did you not know that the past drafts were not processed"

Would it be reasonable to assume that you made certain each month that the draft was covered? If so, you should have had a plus balance in your account for those amounts.

They had the right to process those amounts, since you gave them permission to draft them.

Bear in mind one thing. No creditor is obligated by law to even mail a bill to a debtor. It's the responsibility of the debtor to pay as agreed. Billing is just a courtesy by a creditor.

Answer 4

It varies from bank to bank and what form of account you were sigh up for the best possible answer is talk to the bank manger it they do not assist you them demand a formally record of all transaction it which upon receiving this go to the better business bureau and filing a formal complaint. the thing aboput banks is they do nothing but make money with other peoples money and charge them for it it like here i hold your lunch for no reason at but because i want to and you have to give me 25 percent of your lunch for therest of the year and in return i give u a percent of a percent

Answer 5

Man I say ban banks unless your making more than a thousand a week.. dont use them You put money in a bank to save not for them to take it out and charge fees... why do you need a bank really anyway?

Answer 6

I am sorry to hear about your troubles. That is why I don't let any company take money off my account automatically. It is a little inconvenient having to be on top of my payments on the date they are due but avoiding this kind of abuses makes it worthed.

Do you have a copy of the agreement? and records of all the withdrawls they have made? Is it true they missed one month? Probably a litigation lawyer will be able to help you if there is some kind of loophole on the verbage of the agreement but it is very unlikely.

Answer 7

I don't think that they can do that. Call the bank's customer service number and ask to speak to a supervisor and talk to them about it so you don't get the run arround. Cause I think that is what the bank it self is doing. If there was an error on their part you should not have to pay for it. If that does not work I would consider finding a new bank.

Answer 8

They can do it. You owed the fee. But if they do not waive the overdraft fee, considering the grief they have caused you, I would get another bank.

You need to keep a little more cash in your account--living that close to the edge lets things like this happen.

Answer 9

Unfortunately they probably can. You owed them the money and should have already accounted for it in your check register. It was a bill that was due that simply hadn't cleared. Perhaps a new bank is in order. Credit Unions often have less fees to bank with them.

Answer 10

Apparently from your description the bank did miss a month and you should have had funds to cover it still in your account. What happened to those funds? Kinda looks like you found a 'bonus' in your account and spent it without researching why you had excessive funds in a particular month.