Creditkeeper giving me the run-around!

[uquillas06]

What is the name of your state (only U.S. law) New York

I had an account with credit keeper for me but they had on file my mothers debit card because they needed a credit card to match my address. Around the begining of march and in 09 my mom had some fraud on her account so the bank cautioned her to close it and re-open another which she did. At the same time I called credit keeper and had them change the cc on file to my cc, everything was fine and the representative said my old card would not be be charged anymore, well come june my moms old account gets charged causing her old bank account to go into negative and get overdrafted not once but twice. I've called several times to Creditkeeper and they keep telling me that they will send me a credit and when I call again to find out the status they have no idea what i'm referring to. Now we have $105 in overdraft fees alone -2 for the transactions (which were paid ) and 1 for an extended negative balance, the bank keeps calling threatening to send my mom to collections and close her new account. The bank will not refund the overdraft fees until creditkeeper gives us the credit proving that it was their error and to top it all credit keeper closed my account in mid june after the bank had paid them anyways. what can i do??

 

[cosine]

Did your mom's bank tell her why they charged a closed account? Or did you mom not actually close the old account?

 

[Antigone*]

Did your mom's bank tell her why they charged a closed account? Or did you mom not actually close the old account?

It would be the latter, cosine. A closed account cannot ever be charged.

 

[uquillas06]

The bank told her when she closed it that any pending credits/debits to the account will re-open the account. With most major banks (chase/BOA/citi) this is the case -a close account can be re-open if something post to the account: Is this not suppose to be legit?

 

[Antigone*]

The bank told her when she closed it that any pending credits/debits to the account will re-open the account. With most major banks (chase/BOA/citi) this is the case -a close account can be re-open if something post to the account: Is this not suppose to be legit?

That is not true. If there is something pending that hits before the account closes, then you are held accountable and the account will not close. Once an account is closed ~ it is closed.

 

[racer72]

That is not true. If there is something pending that hits before the account closes, then you are held accountable and the account will not close. Once an account is closed ~ it is closed.

Not true. I had closed an account at BOA and a full 2 years later, a former business associate made a deposit to that account thinking the account was still open. A few weeks later I received a bank statement from BOA on the account showing it had be reactivated. When I went to close the account a second time I was told that any activity can reactivate a closed account.

 

[Antigone*]

Not true. I had closed an account at BOA and a full 2 years later, a former business associate made a deposit to that account thinking the account was still open. A few weeks later I received a bank statement from BOA on the account showing it had be reactivated. When I went to close the account a second time I was told that any activity can reactivate a closed account.

That is crazy and should not happen. It is a huge liability to the customer and the bank to reopen a closed account. I can see it now if you had closed your account due to fraud and then something like a deposit triggers the reopening ~ fraudsters would have a field day.

I have reopened an account at a client's request; but when I've been presented with an item coming into or trying to pay from a closed account I have instucted our transaction support to return the items.

 

[cosine]

It would be the latter, cosine. A closed account cannot ever be charged.

Many banks do it quite frequently. I can't say whether it is intentional or oversight. I do know many banks have some serious programming problems with their computers.

 

[cosine]

That is crazy and should not happen. It is a huge liability to the customer and the bank to reopen a closed account. I can see it now if you had closed your account due to fraud and then something like a deposit triggers the reopening ~ fraudsters would have a field day.

This is in fact a real practice at big banks. Not only can a deposit trigger a reactivation, but so can a withdrawal/debit in any form. I have a suspicion that even a balance inquiry (maybe only if the correct PIN was used) can do this. This problem is predominantly at large national banks. Smaller community banks tend to not have the problem.

I had this happen with Chase. They bought a bank I had an account (checking but no CC) with. They also bought another bank I used to have a CC with. I had closed that CC with zero balance. I later applied to Chase for a CC and they declined saying their policy is no more than one CC account per individual. It seems they opened the old CC account at some point during the transfer from the old bank to them. But I could not get access to it because that account listed my old address. It showed on my CR as zero balance and open (even though I closed it). My branch manager tried to correct it but could not. Ironically, when I called customer support, they did not have a record of that CC account. So I eventually closed my checking at Chase (thanking the branch manager for trying to help and suggesting he would eventually end up employed at a better bank some day, to which he replied "soon").

I have reopened an account at a client's request; but when I've been presented with an item coming into or trying to pay from a closed account I have instucted our transaction support to return the items.

So it's not automated at your bank? You mean real people are in the decision making loop? Maybe that's a properly run bank, as opposed to the top 20 or so national banks. Do you mind telling us the approximate size of the bank (not accurate enough to actually identify it)?