July 19, 2009
Why did my bank change me overdraft fees when a merchant tried to take money out of a closed account?
gabby.graf asked:
I closed my bank account because I never use it, then paypal tried to take out like $2 for ebay fees twice, which lead to $70 in overdraft charges. How is that legal, and what do I do?
I closed my bank account because I never use it, then paypal tried to take out like $2 for ebay fees twice, which lead to $70 in overdraft charges. How is that legal, and what do I do?
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Comments on Why did my bank change me overdraft fees when a merchant tried to take money out of a closed account?
Your suppose to stop ebay and paypal from using that account, if you authorized them(ebay and paypal) before and it was only suppose to happen once then you can dispute it, or if u never authorized them to take anything out, OR it you did stop it and they did it anyway. You should talk to the ppl at the bank anyway and try to see if they will help you out in anyway.
When you close your account they will usually ask you if you know of any pending debits/credits that will come in/out of the account. If you say no then they will go ahead and close it. If a transaction goes through that is automatic (lets say an automatic bill/payroll check) tbefore the account is officially closed (usually 1-2 weeks depending on the bank) then the account is automatically reopened and the transaction will take place, therefore causing you to overdraft. This is legal because when you opened your account you signed an agreement that you are responsible for the account. It really ***** that you had closed it but the bank assumes that you should know when something will be taken out/come in. My advice is that you go to the bank and ask for the manager (be VERY nice) and tell her your situation. Maybe she will refund the overdraft fees, it sounds like you have two of them. Some banks are ***** and only out to make money so they may not. Hope it works out.
Well if you made those transaction then yes it will not be closed. They will be reopened and remain negative til you pay off the balance. Now if you did not make those transactions then you must file a dispute with paypal/ebay at your bank.
Never close an account if you know something is going to come through because it will be opened once it comes through or put stop pays on all transactions of course that cost a nice hefty fee in itself.
Because those are the last accounts you gave the merchant.
If you are going to shut these things down, you need to TELL the merchant to dip into a different account. By agreeing to PayPal’s TOS and by being verified, you comitted to paying the fees that YOU owe. Its up to YOU to keep the accounts current..