Can a bank accept deposits into your checking account after you closed the account with a negative balance?

Question

I closed my account with -$300, and forgot I was getting a refund from school. Is the bank gonna keep my money that was deposited? If so, it that legal?

The balance of the bank account is going on the bankruptcy

Answer 1

Well, yes, they'll keep $300 of it - sounds like you owe them than, if you had a negative $300 balance. If the deposit is more than that, they must refund it to you.

Answer 2

I have never heard of a bank closing an account with a negative balance. When I closed my account in OR to move to NV, the teller and I figured what checks/fees were outstanding and I left that amount in the account. The bank then notified me by mail that my account was closed and had a zero balance. If you are expecting money and it was to be deposited straight into your account, the bank should be returning the check to your school with a notice that this account is closed. In the meantime the bank will send you notices to take care of the negative balance as soon as possible. Don't get turned over to a credit bureau by a bank. You will not be able to do any financial activity with any other banks for a while. My oldest son learned the hard way.
I would contact the school and see if the money was returned to them.

Answer 3

When you closed the account you still owed the bank money. They are entitled to collect it. If the deposit was accepted then they will have to return the amount in excess of the 300 and any handling fees to you. It is possible, however, that since the account was closed the school was unable to deposit the refund and is waiting for you to contact them about paying you. When you get the money, contact the bank and make arrangements to repay them. Offers to pay from you will look good on your credit rating which unfortunately is necessary to survive these days.

Answer 4

So you left the bank holding the bag for $300 bux you owed them and figured you got clean away, right?

Ya gotta be careful, your responsible for your actions.
In this case the bank had the last laff, on you, cause you are gonna pay fees too. Bet if you read all the fine print, they can do exactly what they did legally. If not, they might well get away with it, especially if you take them to court, cause it looks from the facts that you present here, that you were into them for $300, and they had no indication you had any intention of repaying them.
Be careful here, you might have laid a snare for yourself here.

Good Luck