What to do about an unauthorized withdrawalfrom my bank account?

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What to do about an unauthorized withdrawalfrom my bank account?

I was on an auto payment plan with my bank credit card. I had to cancel my payment plan with them (due to my poor financial situation) which I did around 10 days before the payment was scheduled to be deducted. They still took my payment out of my bank account anyway. I called to get it back and was told many times that it was coming; then to fax over some documents which I did. Last week, I got a refund check, which I deposited into my new bank account (closed the old one to avoid them taking any more money out). Today I got a letter stating they’ve put a stop payment on the check. Can they do this?

Asked on July 20, 2011 Arizona

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Your former bank can place a stop payment on the check they issued to you concerning the closing of your account, the apparent unauthorized payment by the bank to the credit card company after the account was closed and the resulting dispute concerning the payment between you and it.

Have you tried to negotiate the check? If so, did it clear? If it cleared, then the bank's stop payment on it was too late. If the check did not clear, or will not clear, you should contact a bank representative to discuss the reasons for the stop payment.

It seems that the credit card company that received the automatic debit from your account refused to return the money to the bank. Now the bank is trying to keep the check it sent you for the money debited from your account that it thought would be returned by the credit card company canceled so that the bank will not have a loss in the transaction.

Good luck.


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