Can they do this?

[syn]

My dad is in the process of changing banks because his current bank is going to be a creditor because of a credit card and bank loan. He isn't writing anymore checks out of the current account but there are a few checks still outstanding. He had a $900+ positive balance in his account and a couple of checks went through (still leaving him with a positive balance). Then a couple of more went through that made it a negative, which I figured would bounce back like they usually do.

I checked his account today and ALL the checks, even the ones that should have gone through came back returned and the bank nailed him with $240 worth of insufficient fund fees. This has never happened before, always in the past the checks that are properly covered are paid where the rest that don't come back.

Even looking at his account now Ford Credit should have atleast went through since they were the first one to draw it out and it even shows the positive balance he would have had. I think they are screwing with his account, can they do this?

Something to know, the business loan he has is something that is taken out of his account every month electronically. The past 2 or 3 months it hasn't been paid because there hasn't been anything in it. The bank has called but my dad has not talked to them and now they have stopped calling and this happens.

So my question is, is is this just a weird fluke that happened with the bank or are they being malicious?

Also he has $625 positive in there now because of the returns, I think he should take the money out as cash and put it in his new account. Then to tell Verizon and Ford Credit not to redeposit the checks.

[allavdj]

My dad is in the process of changing banks because his current bank is going to be a creditor because of a credit card and bank loan. He isn't writing anymore checks out of the current account but there are a few checks still outstanding. He had a $900+ positive balance in his account and a couple of checks went through (still leaving him with a positive balance). Then a couple of more went through that made it a negative, which I figured would bounce back like they usually do.

I checked his account today and ALL the checks, even the ones that should have gone through came back returned and the bank nailed him with $240 worth of insufficient fund fees. This has never happened before, always in the past the checks that are properly covered are paid where the rest that don't come back.

Even looking at his account now Ford Credit should have atleast went through since they were the first one to draw it out and it even shows the positive balance he would have had. I think they are screwing with his account, can they do this?

Something to know, the business loan he has is something that is taken out of his account every month electronically. The past 2 or 3 months it hasn't been paid because there hasn't been anything in it. The bank has called but my dad has not talked to them and now they have stopped calling and this happens.

So my question is, is is this just a weird fluke that happened with the bank or are they being malicious?

Also he has $625 positive in there now because of the returns, I think he should take the money out as cash and put it in his new account. Then to tell Verizon and Ford Credit not to redeposit the checks.

He definitely needs to close out that account. If he's in the positive, just go to an ATM and withdraw the cash if a teller won't do it because he's "closing the account". Once you are down to a negligible amount, then go in and close out the account and let them sit on the 5-10 bucks that's left for as long as they thing they need to.

[syn]

Thank you. He doesn't have an ATM card so he would have to do it by the teller. Now it's a mess, it just makes me mad how they would do something like this. Ford Credit is a real important check that needed to go through because he was behind on payments. Same with Verizon.

[StartingOver08]

As the other poster said, he needs to pull out all the cash he can but a nominal amount.

If I were your Dad, I would just go to a teller and pull out all but about $10. Do not close it yet. Just get the cash out.

Then the next day go to a different branch, if possible, to close the account. You do not want the teller to put a hold on the funds for incoming checks. Make arrangements with Verizon and Ford if you have to. But do it with another account or a money order (preferable).

Remember, pulling money out of your account is a normal type transaction. Closing an account is completely different.

Make sure no more checks are written. I still have my account with about $17 in it that has no more checks outstanding. I plan to keep it that way until the discharge. Then I have to close the account because the business debt will sieze it (don't really care about $17) but the point is...you don't want an active account with deposits etc with a bank that has a debt that is in the BK.

[syn]

He was waiting for two checks to go through that he couldn't call and tell them to hold them and they did. Now there is $225 or so left so I think he should take out $200 and then leave the rest then close it.

His lawyer said even if he didn't close it himself the bank probably would themselves because of the loan being included. Just got a call from my dad, they haven't signed yet which I thought they would today but I guess their lawyer needs more time.

Now I guess I can convince him to add some more people into his bk.

[StartingOver08]

Make sure he has everyone in the BK. If your Dad wants to volentarily pay someone back after his discharge he can elect to do so at the time, but don't leave anyone off the schedules

Yep, the bank will close it for him like the attorney says, but the difference is who gets the cash. Even though it is only $200, better its in your Dad's possession than the Banks' possession. Unforntually when you file, you look at nickles and dimes too.

[syn]

According to his lawyer the bank can't take the money but I don't think his lawyer realizes that the loan hadn't been paid in 2 months.