Most people change banks sometimes, either because of a move or over dissatisfaction with their current bank. In fact, as big banks like Bank of America and PNC continue to add questionable and expensive fees to consumer checking accounts, more people are closing their accounts in order to switch to local banks or credit unions. Unfortunately, a closed account can still come back to haunt consumers owing to banks’ negligence. For example, many banks will re-open an account when a third party attempts to make a direct deposit or an electronic debit on the closed account, despite the fact that the consumer clearly intended not to authorize such activity when he or she closed the account.
Once banks re-open such accounts, they often start charging maintenance fees and assessing overdraft fees. Some consumers pay the fees to rid themselves of the headache, and others find themselves in collections or with bad credit reports. If you or someone you know has been charged fees from a closed bank account, please contact us to discuss your legal options.