Can bank re-open and add charges to an account they closed due to full payment?

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sinny

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We had total loss on a car. The insurance did not cover the entire remaining balance. We continued to pay on the loan every month while waiting for the GAP insurance to pay. When we called to make payment over the phone this month the bank notified us that the account had been closed. We received a letter from the bank about a week later confirming that the account was closed because the balance had been paid off. Not even a week later we received another letter from the same bank that we were past due on this month's payment. It seems that the account was re-opened. We were never notified. From what I gather it seems like the GAP accidentally made a duplicate payment. The bank posted both, subsequently closing the account. I am only assuming that this mean when the GAP retracted their first payment it then left a balance on the account and the bank re-opened it. GAP claims that because we refinanced the car 2 years ago the GAP insurance did not travel with the new contract and so they are not paying off the full remaining balance on the account (that is something else I need to look into). What I was wondering was, can the bank close our account and send notification that it was closed--then re-open it without notifying us and send a letter that the account is now overdue?
 
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