Discover Card got sneaky and pulled $$ from our checking

[catleg]

You could file a Reg E complaint, but I would just abandon that bank account and include them in my BK filing. Sure they'll pile on the charges...it just doesn't matter. It won't result in chexsystems purgatory, as far as I know. You didn't write a hot check. I had a similar problem with BofA last year and I was able to walk away from it, filed Ch 13, and last week opened a new BofA checking and savings accts so I can play keep the change with them again.

[sheilaE]

UPDATE:

Just wanted to update you all on this. A claim has been filed, but I'm sure I'm going to lose and have to make a bank depost. I called Discover. They told me that yes, I did indeed cancel the automatic payments, but not all of them. I missed two and that was why the funds pulled. I know I didn't miss two-they went in and scheduled more payments! When I filed the claim with WFB, they wouldn't let me explain any of that. The questions were all yes or no questions like:

1. Did you ever authorize auto pay-=yes
2. Did you get a name of a rep at Discover who canceled the autopay=no (I did it over the internet)

The longer I leave the account in the negative, the more money I will be charged. WFB is holding off on charging me the $5.00 every 2 days that I'm in the negative, but once they rule against me, and I'm sure they will, the charges will all be back dated to the original date it all happened.

Is it true that we can include our WFB checking in our bankrupcy or should I just just myself to the bank and make the deposit-then pray no emergencies come up this month because we won't have any extra funds left over.

[catleg]

Yes you can include it in your BK. Don't pay it.

There are rules for recurring ACH transactions which Discover may not have followed. Please see this page for further details.

It's in technical bank speak but you'll get the idea. They can't just wave a magic wand and take money, even more so when money is not there to take.

I'd still be very surprised if WFC does not reverse the transaction themselves.

Even so I would definitely not pay it.

[sheilaE]

Thank you catleg for the response!!! I'll definitely read the info.
Also, do you know how long the banks will let people have a negative balance ini checking? Because we are hoping to not file until Aug 1st or Sept 1st. I think having the negative checking account balance is worse then not paying my credit cards and I don't want a sheriff to come knocking at the door to drag me away

[WhatMoney]

Thank you catleg for the response!!! I'll definitely read the info.
Also, do you know how long the banks will let people have a negative balance ini checking? Because we are hoping to not file until Aug 1st or Sept 1st. I think having the negative checking account balance is worse then not paying my credit cards and I don't want a sheriff to come knocking at the door to drag me away

Why not ask WF? If you wait long enough they will keep charging you, unless they rule in your favor. At some point they will close your account and turn you over to their debt collection agency. You'll also end up in ChexSystems.

[catleg]

No, I wouldn't be so sure about Chexsystems, I had a similar experience bouncing a paypal ACH withdrawl with BofA, it got presented twice, two NSF fees, bunch of other crap, went to collections, and still my Chexsystems is clean. Still, BofA could be different.

[WhatMoney]

No, I wouldn't be so sure about Chexsystems, I had a similar experience bouncing a paypal ACH withdrawl with BofA, it got presented twice, two NSF fees, bunch of other crap, went to collections, and still my Chexsystems is clean. Still, BofA could be different.

BofA uses EWS. With any of the banks that own EWS you should also check your EWS report:

Early Warning Services
8777 East Hartford Drive Suite 200
Scottsdale, AZ 85255
Call EWS consumer call center at 800-325-7775 to request your report.

Many of the banks that once used chexsystems including Bank of America now utilize a system called Early Warning Services. If you are reported to Early Warning Services, your account will be closed. Most people reported to chexsystems are also reported to Early Warning Services. Early Warning Services is a limited liability company owned by Bank of America, BB&T Corporation, JPMorgan Chase, and Wells Fargo.

http://www.creditinfocenter.com/word...-services-ews/

[catleg]

Thanks. Another report. Oh joy.
I don't need to check it, though, since in recent weeks I've been able to open new bank accounts with both BofA and Chase Bank.

[ryan]

Thanks. Another report. Oh joy.
I don't need to check it, though, since in recent weeks I've been able to open new bank accounts with both BofA and Chase Bank.

Catleg, you were able to open a bank acct with Chase.....didn't Chase sue you?

[CanBreathe]

Chase bank did the same thing to me for over $300.00 I called my credit union, didn't mention the bk, but simply told them that I didn't authorize the withdrawal and it was considered fraudulent. Money was back in my account the next day. If you didn't have funds to cover it then that adds more credence to yoour story.

Good luck

[catleg]

Catleg, you were able to open a bank acct with Chase.....didn't Chase sue you?

They sued my wife. But all is forgiven now. Chase has sold all of our accounts.

In fact the nice lady typed in my social security number. It was something like the scene in Blues Brothers where the cops run Jake & Elwoods license plate.

But instead of calling security, she just went click click click and created a new profile for me. Everybody gets a fresh start. Moral hazard is the new normal.

[ryan]

They sued my wife. But all is forgiven now. Chase has sold all of our accounts.

In fact the nice lady typed in my social security number. It was something like the scene in Blues Brothers where the cops run Jake & Elwoods license plate.

But instead of calling security, she just went click click click and created a new profile for me. Everybody gets a fresh start. Moral hazard is the new normal.

LOL, LOL...thats too funny!...that scene from the movie always cracked me up!
I'm glad that worked out for you...

[treehugger1]

While I didn't declare bankruptcy, I have also been able to open up accounts with banks who sold my defaulted debt to third parties. The big banks that I defaulted on and who SOLD my debt, show accounts paid-in-full in their records. One bank shows a bad chexsystem issue with them, but they would still let me open an account, if I wanted to. I can't get unsecured overdraft protection, and my debit cards are not honored for amounts that exceed my balance, but that is fine.

Chexsystem can be a real problem, but it is not impossible to open a bank account after past bank issues. you just need to do a bit of research in your own area.

The Blues Brother's scenario was very similar to my own. LOL

[catleg]

Yeah it was like walking into the lions den going in that place, but hey, 25000 free Continental miles is too good to pass up.

I also went into Bank of America to play another round of Keep the Change with them. (expected return, $250 next year).

Just goes to show you the power of bankruptcy court and the automatic stay. (and bank employees who are incentivized to open accounts).

[SLOTGIRL]

discover drafting w/o permission?

i had a call from discover today(at work no,less) saying that i had to make a pymt right now that i was 34 days in default. my first missed pymt was 8/1/10! ...anyway, she said i have your bank info xx-xx-xx do you want me to process the payment? i said no, i do not authorize any transaction. she said she would call agin later today. i always paid on the website,but it was autopay. i manually picked the date,amt,etc... can they legally take a payment oyt if i didnt have one set up? i am starting to panic! i cant file for like 2 more months!

thanks