What if they try to debit on a closed account?

[Jendor]

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

Before closing an account, all the auto-debits on the Idaho account will need to be transferred to the new banking institution. While every effort will be made to contact the vendors and billing companies (ie. anti-virus protection on computer auto renews every 2 years, some bills such as cable each month, etc).

What would happen if someone screws up on the other end(companies & vendors bills are owed to) and the closed account were to accidentally be auto debited? Who would be responsible? The account holder of the closed account?

What would be considered a reasonable amount of time to keep the old(to be closed) account open while transferring things over? It's a couple online type accounts that only debit every couple of years that have me the most concerned. The monthly ones, after a month of seeing the new account debited and one to be closed without I'm less concerned about.

Thank you.

 

[Antigone*]

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

Before closing an account, all the auto-debits on the Idaho account will need to be transferred to the new banking institution. While every effort will be made to contact the vendors and billing companies (ie. anti-virus protection on computer auto renews every 2 years, some bills such as cable each month, etc).

What would happen if someone screws up on the other end(companies & vendors bills are owed to) and the closed account were to accidentally be auto debited? Who would be responsible? The account holder of the closed account?

What would be considered a reasonable amount of time to keep the old(to be closed) account open while transferring things over? It's a couple online type accounts that only debit every couple of years that have me the most concerned. The monthly ones, after a month of seeing the new account debited and one to be closed without I'm less concerned about.

Thank you.

The owner of the bank account will find out about the "error" when the vendor who tried to debit the account contacts them. The bank will not charge the account owner directly because there is not longer a relationship between the two, but the vendor may certainly pass along the cost of the rejected auto-debit.

You should keep track of your auto-debits. I dont' know how long you should keep the original account open, it would all depend on why you wanted to close it in the first place.

 

[swalsh411]

You're making a mountain out of a molehill. Worst case whatever service that happens to be will be canceled. The vendor will make an effort to contact you to let you know to update payment information. You do not have to keep an account open until the end of time on the off chance somebody may attempt to debit it.