banks accepting payments on closed accounts?

Question

i had a bank account forceably closed, but i still had my direct deposits going into the account. i told payroll that i needed my actual paychecks, but they said it'd be 2 weeks before the system recognized it, so 2 weekly paychecks still went in, after the account was closed. i called the bank manager and asked him if he had recieved the monies, and he initially denied it, then conveniently found the record of the payment being recieved. he said that they were accepted as payment on the closed account, but last i checked, banks can't tell you what to pay with your money, or accept money for an account that has been closed. i mean, where would the money go if the account didn't exist due to closure? i don't get it.....also, the ending balance of the account and the amount from the collection agency is the same, so there is no 'credit' to my account. what can i do?

just for the record, the forceable closure was not due to my own financial instability, my ex is entirely at fault here, i just unfortunately had my name on the account, having my measely $20/week paychecks deposited into it. unfortunately, i was the only one putting money into it, he thought it'd be smart to overdraw it. but....yes, i know, my name was still on it. my bad.

Answer 1

Sorry for your misfortune.

Banks are allowed and don't need your permission to take your direct deposit because a debt was owed to them, therefore they can accept it even though your account was closed.

If the account was closed then the money couldn't have gone in- like you stated, however the bank still could have gotten the money. (Banks have accounts/ GL that are for force closed accounts and recovery) so they don't need your account open to get the money. Depending on how much money you owed them they can continue to take your direct deposit and credit it towards your debt until it is paid in full. After that they should be contacting you by phone or mail to see how you want your money sent.


However you recieved no credit towards your debt with the money that was kept by the bank- you need to either dispute it on your credit report the amount you owe) or to the bank to get it squared away. They will have to do research

Answer 2

If your account was closed by the bank - it sounds like you wrote bad checks and you owe them money. Technically they can have you arrested for passing bad checks - that is bank fraud. Yes they can keep money that came to them from you (your employer) - you owe them money.

You need a statement from them - and then you need to get the proof from your employer that the money was deposited into the account - go sit down with the bank manager and get this figured out. Get on a plan to pay them back the rest of the $$ - they probably reported you to CheckSystems which means you cannot get a checking account for the next 5 years (but that is really getting off easy).

GET ON A BUDGET AND DONT SPEND MORE THAN YOU MAKE!

Answer 3

If you owe the bank money they can take that money and don't need your permission. If the account is closed usually the direct deposit goes back to the sender. If you don't see the credit on the account call the bank and collection agency. Maybe the money you owe the bank was in the collection account with their back. So even through your checking account was closed but still your collection account was with them.

Answer 4

When I was in high school and working, I could only get a saving's account, which I had my checks direct deposited into. When I turned 18, the closed the account on me, b/c you had to have at least $100 in savings (as an adult to keep the account active). The ONLY way I found out that my account had been closed was when my new place of employment got my check back. It had been rejected. Maybe it's different for a checking account? Maybe it's different for accounts with negative balances? That's just my experience. I would be suspicious of your employer.

Answer 5

You should have had the direct deposits stopped too, but contact the bank and give them time to pay your money back to you. You specify the time, or tell them they are going to get sued for this.If you have some sort of payment deal to pay off an account then this could be perfectly legal, you owe money so they collect.

Answer 6

When you opened the account, you accepted the terms and conditions of the account. The terms include permission to take ANY funds in the banks possession to cover ANY amount you owe them. Simply put, you DID authorize them to accept the checks to cover the overdrafts YOU caused.

Answer 7

call the headquaters of the bank and get those assholes in trouble cuz its basically stealing ur money...