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Bank Closed My Account

I have a situation involving a bank I will refer to as *A*. I had *A* bank account a little over a year ago. I was charged NSF fees through my own miscalculations - this is not a 'unfair overdraft charges' question - they were earned. I was going through a divorce so I was broke. The account went deliquent - again, my fault, my problem. Then I went in to pay off everything several months later and the account had "closed" three days prior. This was in October of last year. I tried to reopen the account at this point - which I didnt see a problem with since I had just paid, in full, without it even being a week past closed - but my ID had expired so I couldnt. Again, my fault, not *A's*

Now here are my concerns: 1. If I paid in full, at the bank - not a collection agency - within three days of the account closing, does that allow *A* to put negative marks on my credit report? 2. Why didnt I ever see ANYTHING from *A* on my credit report in the past year? Considering it was paid, shouldn't it be a closed/paid in full? Why was there no documentation of past business with them? 3. Why did the teller who was talking softly about my credit report stop and say, "Oh wait, we have a charge off here", and then she got up immediately to go 'take care of that right away'? What was there to 'take care of'? Why couldnt she have taken care of it from the phone at her desk, you know, the one where I was sitting? 4. Why was the one negative remark on my credit report (not sure who they use because my credit reports from three separate companies have not mentioned *A* nor does it now) the "charge off" status of the bank account I paid off? 5. I did not receive new materials/guidelines/policy updates when I reopened my account. Nor did I sign anything...was my account actually open the entire time? 6. When I attempted to 'register' for online banking I was informed that my log-in information was not valid. I then called customer service and they fixed it for me - by giving me my old sign in information for my "closed" account.

All of the above mentioned things are not very reassuring to say the least. How do I go about finding out exactly what it was the teller had to go into another room to use another phone, that I could not overhear about my credit report? Any and all information would be greatly appreciated.

  1. The bank reported your history. It it is factual, it is correct and they may obligated by contract to report all their accounts, not just yours.

  2. Why you were not aware of the bank's report earlier, cannot be explained. They may not have been reporting at that time or it could have been an oversight, but yes, the account should now be shown as paid. They have an obligation to report accurately when they report. If the report shows a balance owing, keep your receipt and ask the bank to update the report.

  3. The teller was researching, gathering information and perhaps speaking with a supervisor or even getting the authorization necessary to research this. Sometimes bank employees will speak candidly and this is better done in private.

  4. I'm not sure I follow your question, but different banks report to different credit bureaus. They are obligated to report accurate information, if they report. There is no requirement to report accounts in the first place, but they may enter into a contract with a credit bureau and commit to reporting all of certain type products.

  5. "Closing" the account may be defined in any of several ways. The bank seemingly prevented all transactions, or all transactions less deposits, which would allow you to repay the debt. It wasn't removed from the system, so unlocking it so that deposits and withdrawals could occur "reopened" the account. It is nothing more than an entry on a computer screen. Because no new account was opened, no new agreement or disclosures were required.

  6. Again, it sounds as though they "unlocked" the account for use. These "locks" prevent transactions so the account is less vulnerable to abuse and it stops fees from accumulating.
As to finding out what the teller said behind closed doors, that probably won't happen, nor should it. The bottom line here is that you should have a positive relationship with your bank. If you are not happy with the service, the products and the costs, seek out another bank. If you can put this behind you and you are happy with the bank, accept the account you have now and move on.

Published on 12/11/06