Over a year ago I closed a bank account at my local bank. Since then the account has been reopened by the bank in order to pay unauthorized bills for which they assess me fees then call me up and tell me that I am overdrawn on the closed account. The bank says that since the merchant used my ATM Visa card that was attached to mychecking account they are required by Federal law to re-open my account, pay the merchant, and give me a call. How do I stop my old bank from doing this? I have given them written notice to stop. How does a merchant using a Visa debit card not get told that the charges have been declined?
If your account had been properly closed and your old debit card listed as closed, the merchant would not have been able to obtain an authorization. As it is, your bank seems not to have checked to see if there was an authorization request made before the debits posted.
If you never gave the merchant the authorization to use your debit card number, or if you informed the merchant that you revoked an earlier authorization, you have a right to ask that your bank refund the unauthorized charges and any bank charges that resulted from them. That right is included in Federal Reserve Regulation E, and your bank is obliged to comply with it. If there is any question that the merchant believes it has your OK to make these charges, notify the merchant in writing that you're canceling that authorization, and keep a copy of your revocation.
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If your account had been properly closed and your old debit card listed as closed, the merchant would not have been able to obtain an authorization. As it is, your bank seems not to have checked to see if there was an authorization request made before the debits posted.