Can Bank of America Do This?

Question

I closed my checking acct with a zero bal. at the end of the month & this month receive a bank statement showing (- $37.50) in my account. I was surprised because I had to go to a special employee who closes accts. Today I find out after but after speaking with the 3rd tier supervisor, my account was never closed due to a coding error & there was a $10.00 automatic payment made on my behalf (in which the bank said I should be grateful to them for making it) However since it was their mistake they will happily refund all the charges except for the $10.00. I told them without any money in my acct and the acct closed they shouldn't have paid the creditor and it was their mistake & that they should reverse all the charges. She told me that I should have called my creditor & tell them to stop billing them. If I do not pay the $10 in 160 days they will send me to their collections dept. My credit is great! can they mess up my credit with this. It is not the money it is principal

Thanks for your responses, what about this:I DID NOT HAVE ACCT ANY MORE WITH THEM:Regulation E - Electronic Funds Transfer(e) Compulsory use(1) Credit. No financial institution or other person may condition an extension of credit to a consumer on the consumer's repayment by preauthorized electronic fund transfers, except for credit extended under an overdraft credit plan or extend tended to maintain a specified minimum balance in the consumer's account.
Sec. 205.14 Electronic fund transfer service provider not holding consumer's account. (a) Provider of electronic fund transfer service. A person that provides an electronic fund transfer service to a consumer but that does not hold the consumer's account is subject to all requirements of this part if the person:
1) Issues a debit card (or other access device) that the consumer can use to access the consumer's account held by a financial institution; and 2) Has no agreement with the account-holding institution regarding such access

Note: There was no fraud here I was going to pay my creditor with my checking from a New Bank and the creditor cannot even take my new check card info until after the holidays and they do not charge a late fee any way, so there was no fraud and the creditor would bill me directly and my credit wil still be great!!!!

Answer 1

Yes they can. Read your "Terms and Conditions". Kinda like Yahoo Answers, heheheeh!!!!

Answer 2

Yes they can. You had an automatic payment scheduled, and they paid it. You are getting the benefit of the service, rental, or other for the ten dollars and you should pay it. It was not their mistake, it was your illegal action that caused this problem. You gave a creditor permission to withdraw funds from your account to pay a debt, when you closed the account without notifying the creditor it is called fraud (ever heard of check fraud?). It will mess up your credit and it should. ---- It's the principle not the money----, if you don't pay the bank the ten dollars you should be prosecuted for theft, but they won't waste the money. THEY PAID YOUR BILL!

WITH YOUR ATTITUDE TOWARD FINANCIAL MATTERS YOUR CREDIT WILL NOT BE "GREAT" MUCH LONGER!!!

Answer 3

They are correct, and you actually are lucky that they paid the creditor. Has it gone back to your creditor as NSF (non-sufficient funds) they probably would have charged you a returned payment fee. It is your responsbility to end all direct debit through your creditors. Just pay the $10 and be happy they reversed all the other charges without any issues.

Answer 4

This might go into the category of life is too short to worry too much these type of issues. I know they are annoying, and I have spent hours and hours dealing with these things. I think the bank is damned if they do and damned if they don't pay the creditor. They should have called you first before clearing the transaction, but it is only $10.
I think your best bet is to ask them to waive the $37 fee.
Good luck

Answer 5

If you have the time. You could sued for they error. Think , is your credit that being in question.
Get a lawyer or go to your civil court of the city you live. They will help. That is part of the consumer credit transaction. If you do not do anything.They will mess up your credit. And that error was not your , is there.

Answer 6

They probably should not have done it, but it is possible they paid it to keep you out of more trouble. It IS YOUR responsibility to cancel all automatic payments from your account, before you close it or change it so that it wouldn't come out the same way. Since it was your charge, I would pay it. Now, if it hadn't been yours, THEN I would have been angry. (But I have heard of a few that others had managed to write checks on their closed accounts, and are told they have to pay. -- Now, that Hurts!)

Answer 7

Sorry to say that principal means nothing to any financial institution in this country. They all suk! It's only $10..cut your losses and get on with life; I know that sux as well, but, that's the way it is in America. Don't ya just LOVE capitalism?

Answer 8

You got to write them. Requesting that your account be hard close and you are to reject any future transaction. I am surprised you can not change your payment method. You can change your payment method anytime on line. I would go ahead and pay the $10.00.

Answer 9

I don't think it's legal for them to keep the account open once you tell them to close it. Unfortunately, you don't have written documentation to PROVE you told them to close it, so you won't have a credible complaint if you report this to the regulatory commissions. Sorry, at least it's only $10.