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  1. #1
    brooks voorhies is offline Junior Member
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    Angry Bank of Amercia failed to stop two ACh payments

    What is the name of your state (only U.S. law)? CA

    My wife set up a stop payment for an ach debt through her bank (Bank of America). We received a letter from BOA stating that the payment would be stopped, but it still went through. BOA said they mispelled the merchants name and it would be corrected and the stop payment would now be in effect, but the next month the payment still came out, because BOA again misplelled the merchants name again. Now we have to fill out claims against the merchant who we already are in a dispute with in order to recieve back our $810 that BOA gave away. We want the claim to be against BOA because they messed up, not us. BOA should have to pay us the $810 and they should file the claim against the merchant. We received a letter each time we requested a stop payment which stated the payment would be stopped. Only today were we told that a stop payment is not 100%. This is insane, it is our money, we told BOA not to pay this merchant yet they did. What can we do to take legal action against BOA?
  2. #2
    TimStudiesLaw is offline Member
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    This link provides current U.S. law with respect to electronic funds transfers.

    [url=http://www4.law.cornell.edu/uscode/15/usc_sup_01_15_10_41_20_VI.html]Donate to the Legal Information Institute[/url]
  3. #3
    Antigone* is offline Senior Member
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    Quote Originally Posted by brooks voorhies View Post
    What is the name of your state (only U.S. law)? CA

    My wife set up a stop payment for an ach debt through her bank (Bank of America). We received a letter from BOA stating that the payment would be stopped, but it still went through. BOA said they mispelled the merchants name and it would be corrected and the stop payment would now be in effect, but the next month the payment still came out, because BOA again misplelled the merchants name again. Now we have to fill out claims against the merchant who we already are in a dispute with in order to recieve back our $810 that BOA gave away. We want the claim to be against BOA because they messed up, not us. BOA should have to pay us the $810 and they should file the claim against the merchant. We received a letter each time we requested a stop payment which stated the payment would be stopped. Only today were we told that a stop payment is not 100%. This is insane, it is our money, we told BOA not to pay this merchant yet they did. What can we do to take legal action against BOA?
    Did you also notify the merchant that they were no longer authorized to debit your account. That is your responsiblity when it comes to these types of transactions.

    The bank has an obligation to make you whole that is all. There is no legal action to take unless of course you are in Los Angeles (the sue happy capital of the world).
  4. #4
    brooks voorhies is offline Junior Member
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    ß 1693h. Liability of financial institutions
    How Current is This?
    (a) Action or failure to act proximately causing damages
    Subject to subsections (b) and (c) of this section, a financial institution shall be liable to a consumer for all damages proximately caused byó
    (1) the financial institutionís failure to make an electronic fund transfer, in accordance with the terms and conditions of an account, in the correct amount or in a timely manner when properly instructed to do so by the consumer, except whereó
    (A) the consumerís account has insufficient funds;
    (B) the funds are subject to legal process or other encumbrance restricting such transfer;
    (C) such transfer would exceed an established credit limit;
    (D) an electronic terminal has insufficient cash to complete the transaction; or
    (E) as otherwise provided in regulations of the Board;
    (2) the financial institutionís failure to make an electronic fund transfer due to insufficient funds when the financal [1] institution failed to credit, in accordance with the terms and conditions of an account, a deposit of funds to the consumerís account which would have provided sufficient funds to make the transfer, and
    (3) the financial institutionís failure to stop payment of a preauthorized transfer from a consumerís account when instructed to do so in accordance with the terms and conditions of the account.
  5. #5
    Antigone* is offline Senior Member
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    If the bank makes you whole then you have no damages

    3) the financial institutionís failure to stop payment of a preauthorized transfer from a consumerís account when instructed to do so in accordance with the terms and conditions of the account.
    Did you read the terms and conditions of the account? Do you even have them? Do you remember the disclosure read to you or your wife when the stop payment was made?

    You are so concerned about what the bank did or did not do, that you completely forgot about your obligations to yourself.
  6. #6
    brooks voorhies is offline Junior Member
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    There was no disclosure read to us. We called the bank and told them we wanted to stop the payment. Why do we feel like we did something wrong? We place our money into Bank of America for security and easy access, they use it to make investments, so it's a win win for us both. BUT, it is our money, if we tell them DO NOT GIVE OUR MONEY TO COMPANY X, and they still do it anyways, then what fault is it of ours? BOA mispelled the merchants name twice, not once, but two times and yet we are made to feel guilty. We are not rich and being without $810 before Christmas, with rent, car payments, food, bills, and everything else most Americans have to pay, really hurts us. BOA was real quick to keep paying, but are real SOB's when they need to repay.

    Yes, I agree, if they make us whole, then the problem is fixed BUT if they don't then they are still liable correct?


    This is just ridiculous the time spent, the stress this causes, I do not want to take anyone to court, we are not like that, but it just seems that BOA does not care, will not admit, or sympathies with the problems this has caused us. BOA just keeps saying that a stop payment is not 100%. We were NEVER told this, we never signed any agreement stating this, I researched their website and I could not find this on it.

    Bottom line is, WE TOLD BOA, STOP THIS PAYMENT, yet it still went through. If it is not 100% then what is the point in even telling them to stop the payment. Maybe we should withdraw all of our money, let the account overdraft, then tell BOA SORRY, IT WAS NEVER 100% THAT WE WERE ACTUALLY GOING TO PAY YOU BACK!!!, but if you fill out all these forms then maybe in 10 to 20 days we might be able to pay you back.
  7. #7
    Antigone* is offline Senior Member
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    My first suggestion to you is to contact merchant X and inform then that they no longer have authorization to debit your account if you already haven't.

    If BOA does not make you whole within a reasonable amount of time you can contact the OCC (Office of the Comptroller of the Currency).

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