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Flagstar Bank Refused To Close Account, Now Has Sent To Collections

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I have a mortgage with Wells Fargo, so I opened a checking account with them. They then sold that account to Flagstar Bank. I told them I did not want a Flagstar Bank account (there is no Flagstar Bank within 150 miles of my house., but I was transferred over anyway.

 

I called twice and asked them to cancel my account, but they told me they needed my signature (for an account I never wanted or opened to begin with). I sent it in, but they claim they did not receive. My fault for being cheap and not sending registered mail I realize.

 

The account had a zero balance, which they put into negative with monthly fees, then they charged off and sent to collections, which is now on my credit report.

 

I am pretty angry about the sequence of this, but not clear on what I should do next. Is this a situation where I am going to have to go to small claims court? The last conversation I had with Flagstar ended with a supervisor telling me I should pay $150 so it wouldn't go to collections, again for an account I never opened. Thank you for any advice anyone can give on what I should do next.

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When did this happen? Pretty sure there was some banking legislation prohibiting accounts from being drawn negative by fees, unless of course they were overdraft fees because you initiated transactions. I know I've had several unused accounts closed for inactivity after the small balance was drawn down to zero due to monthly fees. But they never went negative. I don't feel like we're getting the whole story here.

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It was this year, no transactions, except I did use/withdraw what was in the account to zero it out when I thought they would close it. They then charged the monthly fee, which sent it negative and then had NSF fees. I will find the last statement I have and post it.

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did the wells fargo account agreement allow sale of the account and what was the fee structure?

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10 minutes ago, hegemony said:

did the wells fargo account agreement allow sale of the account and what was the fee structure?

I'm sure it did, Wells Fargo sold all of their Ohio banking accounts to this bank.

 

The Wells Fargo account was free, I assume because I had a mortgage with them. The Flagstar account had a $10 monthly fee.

 

You can see here (hopefully, I know photo quality isn't great) I had a zero balance with them in April (after a fee waiver), then they charged me in May which sent it to -$10. Then they started charging me $6 a day for being overdrafted. This was while I was attempting for months to have them close the account.

 

https://imgur.com/xV09rU6

 

https://imgur.com/0cEXIkd

 

https://imgur.com/KFBrgrZ

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I feel like there is more to this. First you did open the account and also I thought the only accounts sold were in the areas where Wells Fargo sold the branches to Flagstar so there is no longer Wells Fargo there, they are now Flagstar branches.

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10 minutes ago, tiggerlgh said:

I feel like there is more to this. First you did open the account and also I thought the only accounts sold were in the areas where Wells Fargo sold the branches to Flagstar so there is no longer Wells Fargo there, they are now Flagstar branches.

Ok, glad you think that, thanks!

 

I opened an account with Wells Fargo, told them I did not want my account sold, and then told Flagstar numerous times to close the account. There are no Wells Fargo retail branch locations in Columbus, Ohio - my mortgage was sold to them and I opened the checking account online at that time to try to make my life easier (that really worked out.)

 

The closest Flagstar Bank to Columbus, Ohio is in Van Wert, 131 miles away.

 

 

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Ok, glad you think that, thanks!
 
I opened an account with Wells Fargo, told them I did not want my account sold, and then told Flagstar numerous times to close the account. There are no Wells Fargo retail branch locations in Columbus, Ohio - my mortgage was sold to them and I opened the checking account online at that time to try to make my life easier (that really worked out.)
 
The closest Flagstar Bank to Columbus, Ohio is in Van Wert, 131 miles away.
 
 



Just trying to be clear. In your complaint I wouldn’t say you didn’t open it and it doesn’t matter what you told WF if it’s allowed in your original account documents.

I would focus on the they didn’t close it. Requiring signatures is common so not doing it over the phone isn’t that odd.

I agree on the comments above related to over drawing for account fees. I would look into that as I didn’t think that was allowed anymore.


As for branch locations I was just stating what is online regarding the sale of the accounts

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