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Bank Closes Account with No Explanation
My bank closed my account after processing three ACH deposits made to it that came in someone else's name. All three were tax refunds, with signed returns that directed the deposit to my account. The bank has withdrawn all this money, except $60.00, which they took out of one of these deposits, that they now refuse to give to me. They told me they will not return the transactions to where they came from, nor release the check to me. How was it okay for them to take $60.00 from that money, withdraw the rest out of my account to close my account, but refuse to send me the check, or return the funds? I have declaration of representative papers assigning me the power to receive these funds and withdraw them, how can the bank justify what they are doing, while taking money from the funds themselves? Please help; the bank seems to be pulling some shady stuff here, leaving me with no way to even track these funds as they are no longer in my account and are sitting somewhere in the form of a check. I feel helpless.
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 Under IRS rules, those tax refund payments, if refused by the bank, must be returned to the IRS, which will then attempt to make the payment by check mailed to the address on the tax return. Banks are encouraged to compare payee names and account holder named on these direct deposited IRS refunds, and to reject them for mismatched names, because of the large amounts of tax refund fraud that pop up every year at this time.
For the future, if you will continue to arrange for this sort of tax refund routing, be very sure that you sit with the bank and explain what will happen, so that either the bank agrees to it or you know not to make the arrangements with that bank. About the $60, there can be no comment without knowing all the facts.
Published on BankingQuestions.com 3/05/09
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