Do bank accounts reopen if an automatic payment is posted?
September 15, 2011 5:47 AM Subscribe
Do bank accounts reopen if an automatic payment is posted?
I had an online subscription to a website in my job field that I setup last year around this time. I used my Citizen's Bank card for the transaction. They stated, like many subscriptions do, that they will automatically renew the subscription unless they hear otherwise from me.... A few things happened after that. First, I had begun using an online bank that is in my opinion, AWESOME. So I only used Citizen's to transfer money. Eventually because of all the fees they associate with low balances I tried to close the accounts (Checking, savings, ODP) about 2 months ago. I called their service number, made sure I was clear of any necessary charges, and they said I was all set. A week later I received an email notification from my Mint.com account stating that I had a low balance on my Citizen's Bank account, which I thought I had closed. I called, they had a mysterious .02 cents showing up on my ODP account. I asked them 1. Why my account was never closed? 2. Where did this .02 cents come from. They told me that they didn't know. At this point I was angry and had a manager on the line and they worked it out and told me I was all set and they would make sure the account was closed. I asked them why I could still see all my accounts online and they said for my benefit if I need to look at the historical records. I said okay then. Cut to yesterday, I get an email notification stating that I again have a low balance on my Citizen's Bank account (which I had first attempted to close about 2 months ago). This was for the subscription I mention above, which I ended up not using and forgot that I had. I realize that this subscription is entirely my responsibility and is my fault for not remembering to take care of. I did switch over everything else that could possibly be associated with that card successfully. So I called Citizen's and asked why my accounts were still open. The subscription charged the account and the payment was on hold since there is no money in there. They stated that an automatic payment such as that can REOPEN a closed account in order to honor the payment. Is this allowed? If so then okay by me, just seems like I can't close this bank account for the life of me. Citizens told me to go to a branch, and pay the money by putting it into my checking account and then they would close the account. At this point I have no actual card, checks, or anything to do with Citizens and now I have to go to their bank and make a deposit. Has this happened to anyone else or am I just completely irresponsible for not remembering about this subscription?
I had an online subscription to a website in my job field that I setup last year around this time. I used my Citizen's Bank card for the transaction. They stated, like many subscriptions do, that they will automatically renew the subscription unless they hear otherwise from me.... A few things happened after that. First, I had begun using an online bank that is in my opinion, AWESOME. So I only used Citizen's to transfer money. Eventually because of all the fees they associate with low balances I tried to close the accounts (Checking, savings, ODP) about 2 months ago. I called their service number, made sure I was clear of any necessary charges, and they said I was all set. A week later I received an email notification from my Mint.com account stating that I had a low balance on my Citizen's Bank account, which I thought I had closed. I called, they had a mysterious .02 cents showing up on my ODP account. I asked them 1. Why my account was never closed? 2. Where did this .02 cents come from. They told me that they didn't know. At this point I was angry and had a manager on the line and they worked it out and told me I was all set and they would make sure the account was closed. I asked them why I could still see all my accounts online and they said for my benefit if I need to look at the historical records. I said okay then. Cut to yesterday, I get an email notification stating that I again have a low balance on my Citizen's Bank account (which I had first attempted to close about 2 months ago). This was for the subscription I mention above, which I ended up not using and forgot that I had. I realize that this subscription is entirely my responsibility and is my fault for not remembering to take care of. I did switch over everything else that could possibly be associated with that card successfully. So I called Citizen's and asked why my accounts were still open. The subscription charged the account and the payment was on hold since there is no money in there. They stated that an automatic payment such as that can REOPEN a closed account in order to honor the payment. Is this allowed? If so then okay by me, just seems like I can't close this bank account for the life of me. Citizens told me to go to a branch, and pay the money by putting it into my checking account and then they would close the account. At this point I have no actual card, checks, or anything to do with Citizens and now I have to go to their bank and make a deposit. Has this happened to anyone else or am I just completely irresponsible for not remembering about this subscription?
This has not happened to me, but more than anything I think you need to chalk this up on the "I just completely irresponsible for not remembering" board. It'll be a good lesson for some other point in life (read: document my automatic subscriptions on some whiteboard)
posted by zombieApoc at 6:04 AM on September 15, 2011
posted by zombieApoc at 6:04 AM on September 15, 2011
I can tell you very specifically that, when I closed my account with Citizen's, they told me that any charges to the account within a certain window would reopen the account.
I wouldn't call you "completely irresponsible" for forgetting a subscription; it's a normal mistake.
OTOH, I'm mildly surprised that they won't just credit out the $0.02. It's beyond not worth their time even for the bureaucracy they've already put into it, much less having you at a teller window. Citizen's never had the world's best service, though, IME.
posted by endless_forms at 6:28 AM on September 15, 2011
I wouldn't call you "completely irresponsible" for forgetting a subscription; it's a normal mistake.
OTOH, I'm mildly surprised that they won't just credit out the $0.02. It's beyond not worth their time even for the bureaucracy they've already put into it, much less having you at a teller window. Citizen's never had the world's best service, though, IME.
posted by endless_forms at 6:28 AM on September 15, 2011
HSBC closed my checking account (probably from non-use). When an electronic deposit went to the account, a helpful branch person put it in the savings account and called me.
But it did not reopen my checking account.
posted by vitabellosi at 6:34 AM on September 15, 2011
But it did not reopen my checking account.
posted by vitabellosi at 6:34 AM on September 15, 2011
Previous posters, I believe you misunderstand: the 2 cents was a different situation, the charge for the subscription is more. It seems like maddening bullshit that they would REOPEN the account; however, it seems completely like bank policy and I'm not surprised. Pay it off and close it. Again.
posted by Eicats at 7:15 AM on September 15, 2011
posted by Eicats at 7:15 AM on September 15, 2011
Infuriating yes, this happened to me as well with Bank of America. They have the same policy.
posted by Tooty McTootsalot at 7:38 AM on September 15, 2011
posted by Tooty McTootsalot at 7:38 AM on September 15, 2011
Response by poster: ahh, thanks Eicats and Tooty. It's nice to know that I'm not the only one. I will suck it up and try and stay better organized I guess, still pisses me off a bit. My thought is that the bank has nothing to do with honoring a payment I have with a different company altogether. That is my responsibility and if I owe someone money I will pay them. Don't assume that it's your responsibility as a bank even though I've closed my account.
posted by modoriculous at 10:06 AM on September 15, 2011
posted by modoriculous at 10:06 AM on September 15, 2011
YMMV. I work in a bank. Each one has different policies. Check a disclosure if you still have one or see if you can find one online. It may tell you what window of time things have to post to your acct. That being said, where I work, if you come to the bank and tell us you want to close it, we make sure nothing else goes through that account. If this item going through your account is going thru as a automatic withdrawal (ACH) your bank can return it. A lot of banks try to get more revenue by not closing accts correctly (hard-closing) and then charging their customers up the yin yang for all sorts of related fees. Then, if you don't follow their basic arm twisting, they up and report you to Chexsystems so you can't open an account anywhere else. It's just wrong.
What I would do, is take what information you have (did you get the name of who you spoke with every time? Who was the manager?) and go into a physical branch, ask to speak to the manager and have them resolve this with you. If your disclosure covers this, they may throw that in your face. However, it might not. If they don't resolve it at the branch, feel free to write letters to the head/CEO of this bank and any bank regulators you can. Believe it or not, that does get results sometimes.
Hope this helps.
posted by Polgara at 6:23 PM on September 15, 2011
What I would do, is take what information you have (did you get the name of who you spoke with every time? Who was the manager?) and go into a physical branch, ask to speak to the manager and have them resolve this with you. If your disclosure covers this, they may throw that in your face. However, it might not. If they don't resolve it at the branch, feel free to write letters to the head/CEO of this bank and any bank regulators you can. Believe it or not, that does get results sometimes.
Hope this helps.
posted by Polgara at 6:23 PM on September 15, 2011
This thread is closed to new comments.
posted by mochapickle at 5:56 AM on September 15, 2011