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Bad Info and Stops that Didn't Stop = BIG Mess
I had several stop payments issued on some ACH debits. I was told by my bank that the name and amounts had to be exact. I asked what was to stop the companies from changing the amounts later to obtain funds? I was then told that once the initial stop payment was blocked, the companies could no longer access the account, even with a changed amount for the six months that the stop was in effect. All my stop payments were blocked, and a week later two companies changed amounts and one of the two used a different name to access my account, causing overdrafts and NSF fees.
I can live with the mistake of the company that changed names, but not for the one that changed amounts. My bank won't reimburse my money, but I feel I was misled by the information I was given when the stop payments were put in affect. I am now $709.25 overdrawn including fees, but feel it should be at least $430.00 less due to the obviously wrong information I was given about changing amounts on ACH stops.
My overdraft limit is only $300.00, but I am well past that now. I have a block on my account, but now have to wonder if the other companies will be able to access my account in the same way and will the bank allow them to come through even though I'm so badly overdrawn. I don't know how long blocks are left on accounts and I will not be able to pay the overdraft off quickly. I have two other checking accounts at other banks, but this was my primary. What can I do to rectify this situation with the least amount of pain?
I was told to stop the direct deposit to my bank and get a paper check from my employer and come in and open a new account on my payday. I am afraid that the bank is just going to take my paycheck to cover the overdrafts. With that in mind, I had my direct deposit directed to one of my other checking accounts and will get a paper check on my next payday. Should I just cash it elsewhere and use some money to open a new account and begin paying off overdraft from the new account? Can I dispute the stop payment that had the amount changed due to the poor information I was given?
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 A big mess, indeed! The left hand in your bank appears not to know what the right hand is doing. That's never a recipe for success or good customer service. Some ACH Originators have been known to change a dollar amount or otherwise have found ways to get around a stop payment order. In most cases, those originators are violating the rules under which the ACH system operates, but they are willing to risk a rules violation to get their transactions posted.
Your plan to attack the overdraft from an account in another bank is a good one. It will prevent the bank holding the overdrawn account from tapping funds in another account in your name in the same bank (that's called an "offset" or "set-off"). As for the fees that may have piled up on your overdrawn account, you have a good argument for having some of them reversed, based on the misinformation you were given.
Published on BankingQuestions.com 6/25/09
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