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Established Member
HopeLives
Posts: 94
Registered: ‎08-31-2010

Blankity, Blank, Blank, Blankity Blank Blank Bank

So, help.  Please.

 

The little bank in a small town in rural Minnesota who took money from a solvent account with charges pending, applied the money to an insolvent account (not managed by me), then charged overdraft fees on the once solvent account, without notifying me of any of that... and hence, I refused to pay the above-titled bank...

 

Has tossed a credit line onto my CR for the amount of the OD charges and daily fees.

 

I'm livid.  There is NOTHING signed anywhere for a one time note from that bank.

 

I've turned it over to the federal government as predatory lending but now I was hoping there was some letter I could use to formally dispute it with the bank, and CR, to get the line item removed.

 

Help?  Thank you!


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Moderator Emerita
LilMirth
Posts: 3,091
Registered: ‎08-09-2008

Re: Blankity, Blank, Blank, Blankity Blank Blank Bank

[ Edited ]

HopeLives wrote:

So, help.  Please.

 

The little bank in a small town in rural Minnesota who took money from a solvent account with charges pending, applied the money to an insolvent account (not managed by me), then charged overdraft fees on the once solvent account, without notifying me of any of that... and hence, I refused to pay the above-titled bank...

 

Has tossed a credit line onto my CR for the amount of the OD charges and daily fees.

 

I'm livid.  There is NOTHING signed anywhere for a one time note from that bank.

 

I've turned it over to the federal government as predatory lending but now I was hoping there was some letter I could use to formally dispute it with the bank, and CR, to get the line item removed.

 

Help?  Thank you!


Hopelives, were you a joint owner of the insolvent/overdrawn account when your solvent account was debited to cover the arrears in the other? If so, then the bank, unfortunately, has the 'right of offset' - to transfer funds from a positive account to cover the overdrawn one. Both federal and state laws allow banks to do this.

 

ETA: Although, some states have rules regarding if/when/how banks are required to contact the account holder prior to offset. I don't know what the rules are for your state-- you'll have to research it.

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Established Member
HopeLives
Posts: 94
Registered: ‎08-31-2010

Re: Blankity, Blank, Blank, Blankity Blank Blank Bank

[ Edited ]

But the bank could see the incoming charges on the solvent account.  They could see that by moving the money, the account would then become insolvent and therefore, they'd be able to charge fees for it, and the primary account.

 

I understand right to offset BUT then to charge fees for doing so?

 

Their actions caused TWO accounts to be overdrawn and substantial fees incurred.

 

Seems like illegal usury to me.  

 

And no, they did not notify me of the movement of money.  As is, that bank has had several loans from me, and over the years, has been paid $100,000s in full.  This is over $174.  Yes, one hundred, seventy four dollars and no cents (or sense for that matter).


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LilMirth
Posts: 3,091
Registered: ‎08-09-2008

Re: Blankity, Blank, Blank, Blankity Blank Blank Bank


HopeLives wrote:

But the bank could see the incoming charges on the solvent account.  They could see that by moving the money, the account would then become insolvent and therefore, they'd be able to charge fees for it, and the primary account.

 

I understand right to offset BUT then to charge fees for doing so?

 

Their actions caused TWO accounts to be overdrawn and substantial fees incurred.

 

Seems like illegal usury to me.  

 

And no, they did not notify me of the movement of money.  As is, that bank has had several loans from me, and over the years, has been paid $100,000s in full.  This is over $174.  Yes, one hundred, seventy four dollars and no cents (or sense for that matter).


I hear ya... and I'm certainly not saying that I agree with some of the banking practices with regard to how they collect on overdrafts and other fees. If they had the opportunity to make more money off of the fees added to your previously solvent accounts, they'd take it in a heartbeat. Banks are not our friends. But, how I think things ought to be is usually usurped by the statutory rules. In other words, nobody cares what I think. :smileysad:

 

You should definitely research the requirements for notification for Minnesota. And, if the law is not in your favor, you might try leveraging your long & otherwise successful banking relationship for goodwill.

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Established Member
HopeLives
Posts: 94
Registered: ‎08-31-2010

Re: Blankity, Blank, Blank, Blankity Blank Blank Bank

Ironically, the bank has two loans in my parents' names that *I* pay on.  Bank is very well aware of that and if the loans do not get paid, who gets the call... me!

 

Want to guess how *current* those loans are?  Want to guess when I stopped paying on them?  Yep, the day after they closed the two checking accounts.  (yes, the overdrew a solvent one, saw incomign deposits, then held a check of mine, then charged me more fees and charges, and then closed the accounts).

 

My parents are filing for BK because of the medical bills surrounding my dad's current medical situation and my mother's last year.

 

I'd have continued to pay the loans but have since decided my money is better spent elsewhere and those loans can go into the BK. 

 

Stupidity much on the bank's part???

 

grrrrrrrrrrrrrrrrrrrrrrrrrrrrr


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LilMirth
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Re: Blankity, Blank, Blank, Blankity Blank Blank Bank


HopeLives wrote:

Ironically, the bank has two loans in my parents' names that *I* pay on.  Bank is very well aware of that and if the loans do not get paid, who gets the call... me!

 

Want to guess how *current* those loans are?  Want to guess when I stopped paying on them?  Yep, the day after they closed the two checking accounts.  (yes, the overdrew a solvent one, saw incomign deposits, then held a check of mine, then charged me more fees and charges, and then closed the accounts).

 

My parents are filing for BK because of the medical bills surrounding my dad's current medical situation and my mother's last year.

 


Are you joint on these loans, or a co-signer? Do you have any collateral tied to these loans?

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Established Member
HopeLives
Posts: 94
Registered: ‎08-31-2010

Re: Blankity, Blank, Blank, Blankity Blank Blank Bank

Sorry for my delayed response:

 

No, I am not joint or co-signer on the loans in question, nor do I have any collateral.  I was simply paying them.

 

Anyway, small bank was reported to federal authorities for investigation into what they did with my checking account, and the mark they threw on my credit as a 1-time payment loan (which I never requested nor signed for).  As it stands right now, both TU, and EX have deleted the bank's line item.

 

Oh... and while I was in Vegas, my ailing father decided to combine the two loans into one, and send me the payment book.  :smileymad:  without consulting me - the payer.  Why?  Because their "friend" at the bank said it would be better for them and easier for me to pay...


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mauve
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Registered: ‎02-18-2010

Re: Blankity, Blank, Blank, Blankity Blank Blank Bank

But you're still not on that loan - they were including it in bankruptcy, weren't they?


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Established Member
HopeLives
Posts: 94
Registered: ‎08-31-2010

Re: Blankity, Blank, Blank, Blankity Blank Blank Bank

[ Edited ]

No, I am not on the loans in question (or any loan). 

 

My mother's pride is stopping them from filing the bk.  I've told her I'll pay for the atty who did mine ($2k).  She's afraid of what everyone will "think" of them...

 

So instead, they are skipping meals, worrying about paying Home Depot, Macy's, Herberger's, et al; I gave them a gift card for $100 (my reward for buying a new phone from Verizon) and they spent it on lunch out while at doctor's appts, dinner with their old friends, and gas... instead of buying groceries...

 

Another month, I gave them $500 and they spent it on HD, Macy's Herbergers, oil change (at 3,010 miles) instead of paying light bill, and buying groceries.


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mauve
Posts: 2,487
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Re: Blankity, Blank, Blank, Blankity Blank Blank Bank

I think that you may need to let them deal with their own mess, perhaps.  And get out of that bank.  I know it's hard, and that it feels like the wrong thing to do, but you can't help them while they're fighting you. 


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