Forum Thread

effect on chexsystems record if a bank closes my account

p_s_92 576 52 June 18, 2011 at 08:08 PM
Deal
Score
0
10,453 Views

Thread Details

I received a convenience check(a balance transfer check issued by Chase against the line of credit of my credit card) with 0%APR which I could write to myself and deposit into my checking account. I deposited the check into a Wells Fargo ATM as i had a checking account with Wells Fargo. Two days later, the Wells Fargo ATM operations office calls me and tells me that they cannot process such balance transfer checks and they have to be presented at a local branch. They informed me that they will be sending me the legal copy of the check back which I can deposit at a Wells Fargo branch. After two days, I find out that a bill payment i scheduled using my Wells Fargo checking account was not sent due to insufficient funds. On inquiring, I find out that since the ATM operations group sent my check back to me, it was marked as "Refer to Maker" in bank records and the Loss Prevention Group of Wells Fargo decided to close my checking/savings account, freeze my funds without notifying me. I explain the matter to 7 people on phone(out of which 3 were from the Corporate Executive Office). The people in the phone told me that though they know that it is not my mistake nothing can be done, bank decision to close my account is final and the inconvenience caused to me due to bill payments not getting processed, not having access to my funds is not their concern.

I wrote to John Stumpf(head of the Wells Fargo) about the whole situation but did not hear back and don't expect will) .

1. Do banking regulations allow any bank to terminate a consumer's checking/savings account, freeze their funds without notifying the customer like they did to me? I thought adequate notice was required by law

2. If a bank closes my account like in the above situation, will that affect my Chexsystems record and impact my ability to open a bank account in future with any bank?

3. Can my credit history get affected, though I know it should not?

Anything else I should do or be aware of?

5 Comments

1

Sign up for a Slickdeals account to remove this ad.

Joined Nov 2007
Undead Mortgage &RE Agent
2,476 Posts
559 Reputation
#2
Quote from p_s_92 View Post :
I received a convenience check(a balance transfer check issued by Chase against the line of credit of my credit card) with 0%APR which I could write to myself and deposit into my checking account. I deposited the check into a Wells Fargo ATM as i had a checking account with Wells Fargo. Two days later, the Wells Fargo ATM operations office calls me and tells me that they cannot process such balance transfer checks and they have to be presented at a local branch. They informed me that they will be sending me the legal copy of the check back which I can deposit at a Wells Fargo branch. After two days, I find out that a bill payment i scheduled using my Wells Fargo checking account was not sent due to insufficient funds. On inquiring, I find out that since the ATM operations group sent my check back to me, it was marked as "Refer to Maker" in bank records and the Loss Prevention Group of Wells Fargo decided to close my checking/savings account, freeze my funds without notifying me. I explain the matter to 7 people on phone(out of which 3 were from the Corporate Executive Office). The people in the phone told me that though they know that it is not my mistake nothing can be done, bank decision to close my account is final and the inconvenience caused to me due to bill payments not getting processed, not having access to my funds is not their concern.

I wrote to John Stumpf(head of the Wells Fargo) about the whole situation but did not hear back and don't expect will) .

1. Do banking regulations allow any bank to terminate a consumer's checking/savings account, freeze their funds without notifying the customer like they did to me? I thought adequate notice was required by law

2. If a bank closes my account like in the above situation, will that affect my Chexsystems record and impact my ability to open a bank account in future with any bank?

3. Can my credit history get affected, though I know it should not?

Anything else I should do or be aware of?

Chexsystems notifies banks if you owe money to another bank. If you do, most will not allow you to open another account. If you do owe the bank money, they will eventually place that amount into collections, which will go onto your credit file.

If I were you, I would file a complaint with your state's Commissioner of banks, usually a division of the Sec of State. The Commissioner has full power to allow all banks to operate in your state, and banks take complaints filed with them seriously. Their closing of your account seems arbitrary, and their explanation not sound.

I would call your bank back and ask for an explanation in writing with the policies they site and where they are listed. If they cannot should you that depositing that type of check at an ATM is against the rules, you will have a strong case to bring to the Commissioner's office.
Reply Helpful Comment? 0 0
Joined Apr 2010
L5: Journeyman
576 Posts
52 Reputation
Original Poster
#3
Quote from General Ghoul View Post :
If I were you, I would file a complaint with your state's Commissioner of banks, usually a division of the Sec of State. The Commissioner has full power to allow all banks to operate in your state, and banks take complaints filed with them seriously. Their closing of your account seems arbitrary, and their explanation not sound.
Thanks, will do. But, does that actually work considering it is a govt. agency(state's Commissioner of banks) which may have a lot of complaints from consumers like me, red tape etc? I mean is it worth(time and energy) pursuing it? Wells Fargo's facebook page has MANY more annoyed people like me so i gather they ill-treat majority of their customers.

They can close any customer's account anytime for no reason just like i can close my account with any bank anytime, but adequate notice needs to be provided to the other entity which they did not supply in my case.

Quote from General Ghoul View Post :
I would call your bank back and ask for an explanation in writing with the policies they site and where they are listed. If they cannot should you that depositing that type of check at an ATM is against the rules, you will have a strong case to bring to the Commissioner's office.
They claim according to Depository agreement, such checks cannot be deposited into an ATM. I looked at the Depository agreement and it just states, that such checks may not be accepted NOT cannot be deposited. I was a Wachovia customer and it was bought by Wells Fargo so did not know what Wells Fargo specified on such checks.

In any case, I feel they have no right to freeze my account without notifying me.

Thanks for your advice and time.
Reply Helpful Comment? 0 0
Joined Dec 2008
Permanently Banned
7,844 Posts
2,884 Reputation
#4
never mind
Reply Helpful Comment? 0 0
Last edited by daniel32 June 20, 2011 at 08:40 AM.
Quote from tjhook :
You'll get crazy newbies who call 3x a day for 2 weeks straight, and post argumentative paranoia demanding the rebate is guaranteed, in writing, by certified mail, on their doorsteps, by tomorrow evening. Then all the other newbie sheep freak out, and THEY call 3x a day, for 2 weeks straight, and the paranoia explodes. And suddenly everyone's carting their paper back to the retailer demanding a refund.
Quote from yescooldude2012 View Post :
All those who CALLED to confirm.... Your dad should have silently slept that night.
#5
Quote from p_s_92 View Post :
Thanks, will do. But, does that actually work considering it is a govt. agency(state's Commissioner of banks) which may have a lot of complaints from consumers like me, red tape etc? I mean is it worth(time and energy) pursuing it? Wells Fargo's facebook page has MANY more annoyed people like me so i gather they ill-treat majority of their customers.

They can close any customer's account anytime for no reason just like i can close my account with any bank anytime, but adequate notice needs to be provided to the other entity which they did not supply in my case.



They claim according to Depository agreement, such checks cannot be deposited into an ATM. I looked at the Depository agreement and it just states, that such checks may not be accepted NOT cannot be deposited. I was a Wachovia customer and it was bought by Wells Fargo so did not know what Wells Fargo specified on such checks.

In any case, I feel they have no right to freeze my account without notifying me.

Thanks for your advice and time.

The OCC Regulates national banks - which Well's Fargo is classified as. No regulation exists for closing of deposit accounts. No need to notify and can do for any reason. The deposit agreement is the driving force.

You don't have a right to bank with them. You went against their depository agreement in an area that is covered with fraud. You most likely triggered an EWS event which many large banks use to monitor for fraud. Many banks also do freezing and closing based on those events, which sounds like you fell in to.
Reply Helpful Comment? 0 0
Joined Apr 2010
L5: Journeyman
576 Posts
52 Reputation
Original Poster
#6
Quote from TomJames View Post :
The OCC Regulates national banks - which Well's Fargo is classified as. No regulation exists for closing of deposit accounts.
Yes, but regulation exists for freezing your funds without a valid reason. It is ILLEGAL to freeze your funds unless they have a court order or you owe them money. Whose money is it? Bank's or consumer's?

Also, remember notice period is required for closing of accounts. Can you walk into your bank today close your account and expect bill payments, checks you have written to be stopped instantly. No, as banks need time to act on closure instructions. Likewise, consumers need time to move their funds.


Quote from TomJames View Post :
You went against their depository agreement in an area that is covered with fraud.
No, I did not. Their staff made a WRONG decision without checking the facts and their lower and executive staff did not want to fix it. Wells Fargo's customer service is really bad.

I deposited another balance transfer check with another bank for the same amount and it was available to use after 2 days.

BTW, I wrote to their executives and they reversed the decision and APOLOGIZED for the inconvenience to me.
Reply Helpful Comment? 0 0
Last edited by p_s_92 July 19, 2011 at 03:38 PM.
Page 1 of 1
1
Join the Conversation
Add a Comment
 
Copyright 1999 - 2016. Slickdeals, LLC. All Rights Reserved. Copyright / Infringement Policy  •  Privacy Policy  •  Terms of Service  •  Acceptable Use Policy (Rules)  •  Interest-Based Ads
Link Copied to Clipboard