Added to Chex without overdraft opt-in

[KCor4]

From 2007 to 2011 I had a checking account at US Bank.

 

In July of 2011 I opened another checking account with Charles Schwab and once that account was active I transferred my US Bank balance to Charles Schwab and left US Bank with a $0.00 balance without having ever overdrafted in the entire time I was with them.

 

However, I had a YMCA gym membership that was charged recurringly to my US Bank debit card and between the time I was switching banks and my zero balance, YMCA charged my card the $30 monthly membership fee and US Bank was more than obliged to accept this charge (despite the zero balance) and then decided to tag on a $32 service fee for the inconvenience it caused them.

 

Now at the time I signed up for the account in September of 2007 I know it was commonplace to automatically enroll customers in overdraft "protection". However, as of July 1, 2010, new laws (http://www.federalreserve.gov/consumerinfo/wyntk_overdraft.htm) were implemented to protect consumers from such erroneous charges and required individuals to opt-in to any overdraft protection services after this date (even if they had previously opened an account) in order to be charged those fees in the future.

 

At no point did I ever opt-in to such a program and when I found out about the charges I was angry. I have no problem paying something I owe, regardless of the fact that I believe it should have been denied in the first place (then the next time I go to the Y and find out my bill hasn't been paid I switch cards). But they had the audacity to charge me this fee twice a month. So I ignored it (foolishly) out of spite because I already had another bank.

 

Then in December of 2012 I applied for an account with Alliant Credit Union in order to build a reputation there and was denied and now is the first time I ever found out about 'The ChexSystems'.

 

I pulled my free report and sure enough... there was US Bank and they had me listed as account abuse.

 

From here I contacted US Bank by registered mail.

 

I informed them of the law and what happened and that they needed to provide me with verification that I opted-in to overdraft protection or to remove me from the ChexSystems.

 

My response was along the lines of, "We're sorry for the inconvenience this has caused you, but here's a copy of your statement from that time to show the charges and a copy of US Bank overdraft policy FROM APRIL 2012."

 

Now, I'm not disputing that charges were made to the account. That's why I'm in this predicament. I'm disputing the fact that they never should have been charged in the first place because I never opted-in to overdraft protection.

 

 

 

Now, if you've made it this far, thank you. I wanted to be as thorough as possible. What are my options? They won't provide me with proof that I opted-in to overdraft protection and have simply brushed me off.

 

Is anyone more familiar with this law? Where can I actually find it written down (FCRA Subsection blah blah blah)? All I find are article references to it with no citation of which act it was passed into law with.

 

Any advice will be greatly appreciated.

[BenevolentSoul]

"Preauthorized" transactions such as yours are not covered by debit card coverage/overdraft coverage/whatever they want to call it. It applies to EVERYDAY card purchases, as in, where you swipe the card or enter it online. If you have something automatic, it is "preauthorized" and will be paid regardless of your opt status.

[nekom]

I had a very similar thing happen to me, and all I can say is GOOD LUCK, you are going to NEED it. I had an argument with a bank, closed the account, they had a problem understanding what the word CLOSED meant (no outstanding checks, no pending debits, should have been cake) I had Chexsystems on WILLFUL violations of the FCRA but no attorney was too interested in my case and I don't have the wherewithal to litigate pro se. It took a freaking BK (on a totally unrelated matter, but of course I included it) to get them to delete what was total BS in the first place. I stood my ground, I never EVER even CONSIDERED backing down, tried every trick in the book and got nowhere at all. Chex is a disgusting company, there is NOTHING good about what they do or who they are.

 

/do I sound bitter? You bet.

[groze]

Sorry, what happen.

 

Here is a tip for everyone, make sure your close or hot-card your debit card before closing your bank account. Also, make sure they turn off the autopay flag as well, so the recurring charge doesn't follow you. Autopay flag can be turned off but it is very hard to do.

[tmcgill]

US Bank is a national bank, and the Office of the Comptroller says If there is still activity on your account, a bank must send statements when EFT activity has occurred.

 

First steps:

 

1. What do you have in writing that shows you closed the account? (bank statements, letter, etc.)

2. If they continued to charge your account, they were required to send statements when activity occurred. (Did you get those?)

3. Dispute with Chexsystems. If they do not respond in 30 days -

4. Dispute directly with the bank. The FCRA allows you to ask them to investigate inaccurate reporting if a bureau dispute does not remove.

They have 30 days to respond.

Edited June 11, 2013 by tmcgill

[jonson]

As for the overdraft law that went into effect in 2010, from what I remember, only new consumer checking account were automatically opted out. If the consumer checking account was open prior to July 2010, you had to call in to request your opt-out decision. You should have received numerous reminders in the mail to make you decision. I know I received numerous mailings from all of my banks, and every time I visited a branch or called in, I was reminded to make a choice.

 

Since your account was open prior to this date, your account was not opted-out unless you told US Bank otherwise. And like BenevolentSoul mentioned, your YMCA membership doesn't count since it was a reoccurring charge.