Bank claimed false overdraft, Now sent to collection agency

[AnthonyBee]

My bank claimed that I overdrew $.10 cents, when I never did, my transaction histories do not reflect that I did either. According to them only they could see this on their computers. The supposed overdraw ended up as $600 in fees. I offered to pay $200, the Assistant Branch manager agreed and gave me a number to call to have them remove the charges and close the account. When I called, they said that it was impossible and I would have to speak to the Branch Manager. I called her for about two weeks, with no returned calls. She was always out of the office. I received a letter that informed me if I did not attempt to make plans to rectify the fees, they would be sent to a collections agency. The account is now closed, and I believe they sent the debt to a collector. I have telephone logs to prove that I attempted contact, and a statement showing where I did not overdraw.

Should I take the case to small claims, and are there any laws or procedures I should know about?

I've never been in a situation like this, and I do not know the procedures, or where to begin. I don't even know if this is in the right forum section! (Haha)

 

[dee_dub]

I don't know what you'd gain by taking it to court. You don't want anything from the bank, you just want to be left alone and to have this corrected. Small claims won't help with that. Have you been contacted by a debt collector or served with court papers by the bank yet?

 

[AnthonyBee]

Just today I received a paper with the total amount owed, from their collections department. The account is now officially closed. I didn't know that small claims couldn't handle it. What about getting a lawyer, and taking them to a higher court? As I said, I've never dealt with a legal situation, especially one like this, so I have no idea what to do.

 

[Theresagail]

1st you need to contact the collection agency and tell them you are disputing this bill because the bank messed up .10 cents. Next you need to still attempt to talk to the branch manager or the collection manager @ the bank and tell them you are disputing this and it had better not be on your credit etc(if it is dispute that w/ the credit agencies) (also you need proof of how this happend per your papers do not reflect a overdrawn amount). the squeeky wheel always gets oiled--

If this does not work then I would find a credit attorney and file a lawsuit. You MUST keep all papers, letters, corespondence -- write down every phone call who you talked to EVERYTHING.

Charging 600$ for .10 cents is absolutly absurd and a judge would love to know how this happend from the banks "own paper work"

 

[Michael Wechsler]

I agree with Theresagail - but you still need to send a letter to the collections agency, certified (for your protection) and in writing - that this debt is not valid. You should probably also send a letter to the bank itself - the manager and the assistant manager - explaining the situation and their liability if this hits your credit report. The assistant manager made a firm agreement (why didn't you make arrangements to pay right on that call? I think we're missing some information.)

With regard to discussing it with the collections agency, be aware that your calls are recorded (for quality control purposes, of course. ) Next, if there is any settlement you need a release from this debt without it hitting your credit report - and this must be in writing. From what I understand, it has not gone to court so you have time and it may not have hit your credit report. This is easier than going to court... good luck.

 

[AnthonyBee]

Thanks for the replies! I think I'm starting to get a grasp on all of this, so I will send everyone involved letters explaining the situation. Is there anything else I should include?

I'm not sure what you mean about making arrangements on the call, thelawprofessor. I was told to deposit the $200, call the payment center, and they would clear the rest. When I called they said that it was only possible to take off $75. When I argued that point, they attempted to call the Assistant Manager, the one that I had made the agreement with, to clear things up. Once they came back on the line, they said that I would need to sort it out with the Branch Manager, and that they couldn't help me. I hope that clears up the confusion

Thanks again everyone for the great response thus far!!