Bank error on my check caused an overdraft

[Neeba]

What is the name of your state? Virginia is my state. I wrote a check at a local store for $15.00, the federal Reserve bank made an encoding error by marking the check as $150.15. My bank returned the check as an overdraft and the store passed the check along to it's collection department who in turned sent it to an agency they hired just for that purpose. The problem is the store was aware of the error, (I notified them myself) they told me that they had not received the check back yet but they would take care of it. Well they didn't, they sent it to their collections company who in turn redeposited the check got the origional $15.00, plus debited my account for an additional $25.00 without my consent. When I contacted them and explained the error they told me they had the right, and I could do nothing about it, and there was a new law or statue, and rattled off some code which they stated gave them the right to debit my account without my consent. Do I have any legal ground here to get this reversed. It's not a lot of money, but it's the principal, not to mentioned none of them were willing to help me, but told me it was my problem. HELP!!!!

 

[crusheroz]

Have you talked to your bank about this? Also I have noticed in some places it will say they have the right to debit your account if a check comes back NSF.

 

[kevinss]

Is this is truly a bank error, how did you find out about it? Do you have anything in writing from the bank that states what happened? If not, can you ask them for something in writing?
You can at least present that to the company that took the additional $25 and see what they'll do. I would say you could threaten to sue if they don't cooperate, but it's not really worth it over $25, and they'll know that too. That's probably why they won't cooperate or care.

 

[Neeba]

Bank error cause overdraft

I had gone online to check my account balance, and saw the overdraft fee, and called the credit union to find out why, I knew i had not overdrawn anything, and the only check I had out at that time was the check to the store for $15.00 . Anyway myself and the store both received copies of the check with the encoding error plainly shown, along with a letter stating it was an encoding error and that there had been an error and requested that they do not charge my account. The credit Union did reverse the charges on my account, but the second $25.00 charge from the store has never been refunded. I still have my copy of the front and back of the check as well as the letter written to the store stating the error occured at the bank, and that I had sufficient funds to cover the check.

 

[kevinss]

That sounds perfect. Send all of the evidence you have to the store and demand in writing (mailed certified RRR) that they refund the $25 fee or you will pursue the matter in court on principle alone, charging them attorney fees and interest. That's if you want to fight it. Just a suggestion.

 

[Neeba]

Bank error causes overdraft

Thank you everyone who responded. I do have pre-paid legal services on my job, I just wanted to get an idea if you all agreed with me, it's not always about the money, but sometimes you have to do things for the sake of principals. Again thank you all.