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Bank Closes Account; Refuses Debt Payment

My bank closed my checking account because of overdrafts and is refusing to allow my direct deposits to pay off the debt. What can I do?

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We don't know why the bank would refuse to accept the direct deposit. Perhaps they have demanded the payment in full and this wouldn't be expedient for you, or they simply do not want to reopen the account for you.

What can you do? Have your direct deposit go to a new bank, or get a paycheck and cash it, and pay the old bank. Again, if they are contemplating legal action and have demanded the amount in full, you may have to save a few checks to do this. Obviously it depends on the amounts of each.

Published on BankingQuestions.com 1/30/09