So apparently it’s legal for a company

[pookieblue]

So apparently it’s legal for a company to just take money out of your checking account at their leisure.

Okay, yes I know I did owe the money. It was a fee for a returned check. What had happened is that I didn’t deposit the money on time. I called them to let them know before they knew. They were like “oh it’s fine we will run the check through again.”

I was not told about a fee. I figured, if they did, they would just bill me. Well I was wrong. They went in two weeks after the check was cleared and took the $30.00 from account! Without calling and letting me know. Without sending me a letter in the mail. In the meantime, I was not making any debits to my account as I was using cash. I try to only pay bills with my checking account. Well…I thought I had the money in my account according to my checkbook. So I made two purchases with my debit card. Turns out that I did not have the money in my account, knology debited the money. So now not only am I short $30.00 but an additional $75.00 in bank fees.

I call the bank, and I was told that it’s legal for a company to go in and take the money from your account w/out letting you know. Without your authorization. And they won’t will not refund the fees since my account is new. Even though I told him, that I did NOT authorize this debit from Knology. Had I known I would have made sure I had the money for this in my account. But I did not know..so therefore…it caused some major issues.

NOW I am short $100.00 to pay my bills because of this.

They did tell me to call Knology..and I have been on hold for the last 20mins. Though I know I won’t get anywhere with this.

I am going to the bank in person on Monday and talk to a supervisor there. I don’t think it’s fair for me to be penalized for something I had no clue about. Knology did not inform me that they were doing this. As I said yes I know I owe the money. However, I still think it’s theft for someone..even a company to have access to your account. Using your checking account number from a previous purchase.
If someone owed me money, could I just take it from their account? Would the bank let me write up a check using their account number? No.

So why do the corporations get to do this?


*edited to add*

I was going to pay the (30.00) bill with this week. it was not like I was not going to pay it. I just had to get my meds and put gas in the car with my last paycheck. plus pay other bills.....oh and food.

[1monster]

1. Retail outlets have 24 hour access to my checking account, but I have to wait one to four days

for my deposits, even CASH deposits, to clear my account so I can use the funds.

"We are not an online bank," they tell me.

But retailers have 24 hour online access to my bank account.

It's legal because our state and federal legislative branches SOLD US OUT for the big lobbying $$$$

The rich get richer, the poor get poorer, and the middle class no longer exists. The middle class is the poor now.

[pookieblue]

2. not that I expect anything to happen...

but I just wrote everyone of my senators and congressmen..both on the Fed Level and State. And the Governor.

I told them that I thought there should be at least some sort of system in place to protect the customer.

As a result of the this company going into my account without my authoriztion and without even notifying me (no phone call no letter) and taking the money...I'm now short money to pay for other things. (due to fees).

However, if the company owed us money we would have to wait for gosh knows how long to get the money back. we just can't go in there and take it.

[Orrex]

6. See my reply below for comments about "without my authorizaiton" and "without even notifying me"

It's a crappy, crappy policy, and I'm sorry that you got screwed by it.

Here's another good one:

Suppose that you have $100 in your account and you're expecing a paycheck for $500 to hit tomorrow, for a total of $600.

Now suppose that you've written five checks for $10 each and one check for $125. You know that the $125 won't clear against $100, but you had to write the check when you did, or your heat would have been shut off (or whatever), so you "floated" it in the hope that it wouldn't be cashed until the $500 hit your account. This practice is not recommended, but nearly everyone who doesn't have a surplus of cash on hand has done it at one time or another.

So what happens?

Unfortunately all six checks (five for $10 and one for $125) hit the account the same day. The bank processes the $125 check first, taking your balance to -$25, but they helpfully still clear the check (after hitting you for a $30 overdraft fee). The other five checks are simply bounced NSF, but at least the bank doesn't charge you for overdraft for those.

Then each of the agencies to which you drafted those $10 checks decides to hit you with a $30 "returned check fee," so suddenly you're out $150 plus the bank's charge, for a total of $180, all of which are debited directly from your account. Your balance is now negative $205, turning your $500 deposit into a $295 deposit. God help you if you were hoping to pay rent with it.

[Roon]

4. Which is crap....

we live in the day and age where a transaction should be immediate. Instead, they delay the transaction in the hopes you will bounce. I think it should be like my food stamp card. If the funds aren't there, it doesn't go through! Instead they'll bounce the transaction and charge you overdraft fees. If you don't overdraft, the bank makes no money. Pure bullshit. There should be a law...

[astral]

3. I had no idea they could do that.

I am using my check-card lately instead of writing checks and did not realize this thing with the vendors. I haven't had any problem with running out of money but it's not like I have a lot, and I can get pretty down to the wire there. Thanks for the heads-up!

[Orrex]

5. As a matter of fact I complained about this just days ago in GD

Link

The overwhelming sentiment among replies was "Simple--just don't bounce checks." Super. That's akin to those helpful souls who suggest "just don't use credit," or "I've never bounced a check, so there's nothing wrong with this." Well, I haven't bounced a check in years, and I still think that it's a bullshit practice.

Annoyingly, many stores now have a policy that states, in effect, "by signing this check, I authorize ((the company)) to debit my account for fees in event of overdraft." In the stores where I have seen the policy posted, it's on a sheet of paper in 12-point font--hardly presented in a way designed to grab your attention--so it's possible that Knology has a similar posting that you simply (and understandably) didn't see.

Stores have no problem making cashiers recite some sales pitch about a credit card or upsizing your french fries, so there's no reason that the cashier can't restate the policy when you present a check.

Be glad that they didn't run the check a second and third time, billing you each time along the way.


You have my sympathies, believe me. Good luck complaining about it at DU outside of the Lounge, though.

[pookieblue]

7. I hear ya...

It's simple to say don't bounce checks.. but as someone said..the way banks set things up.

Plus sometimes, if you have an autodraft or billing...a company will sometimes run it a day early and if you don't have the money in your account..of course it's going to bounce.
This happened to a friend of mine, with knology. She had it set up for them to debit her account on the first of the month. Instead they did it two days early.

But they refused to say that they were in the wrong. She went round and round with them. never did get the $30.00 back.

I had the money but the deposit was after two. so the check cleared the same day at the deposit. However...the bank ran the check first. That freaking sucks. I called knology and they were like "no problem...we will run the check again." No mention about the fee.

I called the bank back then and they did a courtsy overdraft refund. that was last month.

I try not to use my checking account for anything but bills. other things are cash only.

So I don't check my account every day. Just every week or so. when I use it.

So to my surprise when I did check it to see if the deposit I made posted.... and I see this...

If only, at the time I was told that they would just take the money from your account. verbally. I would have been prepared. instead...since I only put enough money in to pay the bills and a bit of buffer money, the $30.00 cleaned up my buffer amount and then some. so I was left with two over draft fees from the other debits.

You think you are doing right...you try to do the right thing and you get screwed.

I really don't think that any company should just have access to your account w/out your permission. I don't care if you gave them a check. It's not like we can go into their account and get our refund.

Welcome to Corporate America.

In any case I'm switching to another cable company whose office is close to where I live. and I can go pay it in person and with cash.