Bank Left 'Closed' Account Open

[ever_learning]

What is the name of your state? MIssissippi

When a debit card has been stolen and the person responsible for the bank account fills out the forms to close said account, is there any reason that the account should remain open for 'credit' purposes?

A friend had lost her debit card and wanted to close the account. She was asked if she wanted to dispute all charges. SHe said no, not all only the ones coming from that date forth as she had just lost it. The teller proceeded to do the paperwork. The account was 'closed'. A new account was established to take in the direct deposit of her military check. The check was never deposited. INstead it was deposited into the old account that should have been closen. The old account was $800 over drawn from the use of the lost credit card in which a police report had been filed. The military check went to cover that overdraft. When the teller was asked about this, the teller stated that she did not have to explain anything but she had left the account open for credit purposes.

Is this legal? A complaint was made but nothing has been to rectify the situation.

What are some steps that can be taken to try to correct this? Or was what the bank did right and legal?


Thank you so much. This site is always informative!

[Ladynred]

Your friend neesds to speak to a bank manager, not some teller.
The account was overdrawn. Under normal circumstances, the bank has a right of setoff to take money from any other account you may have in the same bank to cure the overdraft. The 'credit purpose' the teller mentioned is probably this right of setoff.

However, since the overdraft was due to theft and it WAS reported and there was a police report, then your friend should not be liable for those fraudulent charges. Your friend needs to get this straightened out with a person with some authority.. and a teller doesn't have it.

[Carrie&Brian]

Did your friend contact her employer to change the account & routing #'s for the direct deposit check?