Is this normal for banks to do?

[alonzomourning23]

I just closed my citizens bank account on the 13th (I was even told it was closed at the bank, they never mentioned anything about it taking a few days), and friday I got a notice saying my account was overdrawn on the 16th. Turns out a charge came through, basically I told my little cousin I'd pay for him to sign up to nba audio pass as a gift, it's 6 bucks a month but since I gave him the card to do it I forgot all about it (he did exactly what I told him to do, so it's not his fault). This was in january. On 16th the charge came in, and therefore they never closed my account. So I call them up friday and, after arguing for a while (as far as I'm concerned the account should have been closed and the charge rejected), they agree to let me pay the 5.95 and refund the overdraft. It was supposed to be posted by tuesday. I go to the bank today and there's no refund yet posted, but I paid the 5.95 and the guy said to call tomorrow and see if anything has changed. He asked if I knew who told me that, but I forgot to ask the woman her name so I couldn't pinpoint who said it (which I should have asked for). I plan on calling tomorrow, but I just get a bad feeling that they're going to refuse to refund it, I'm gonna have to pay the fee and then try my luck with the banking commission (I figured I'd pay the money for a stamp and try to complain to them, doubt it will get anywhere though).

Now, as far as I'm concerned the account should have been closed and all charges rejected. The friends and family I've mentioned it to seem to agree and don't understand why the charge wasn't just rejected and the account closed (and 2 of them suggested complaining to the banking commission). Is this normal, and just something not many people have encountered, or is this something the bank shouldn't have done?

 

[rmewpm]

I think the bank is right if you would have written a check that came in after your account was closed the same thing would happen just my 2 cents

 

[dafoomie]

Citizens has been pretty good to me about these kind of things, just be reasonable and try to work with the guy. Ask for the manager if you have to.

 

[zionoverfire]

They do this so anyone who you owe money to can still make a claim, checks you wrote for example would otherwise be bounced. This same thing occurs with credit cards when you cancel them.

I've found with credit cards at least you can tell them you lost it or a banking statement and it could possibly be stolen, that way they won't accept any new charges to the account without your permission, I'm not sure if this works with bank accounts or not.

 

[alonzomourning23]

[quote name='rmewpm']I think the bank is right if you would have written a check that came in after your account was closed the same thing would happen just my 2 cents[/QUOTE]

While I would expect a check to bounce, I can understand a check. With a credit card (or a debit/mastercard card in this case) I would think it should have been denied when it first was verified, as no merchant lets you take an item without verifying the card.

 

[Tromack]

Yeah, it is normal. I remember this happening to people when I worked at a bank. I agree it is kind of stupid, but it does happen.

 

[tdphillips]

That's why it's good to make sure you have no activity on an account for a couple months before closing. Open your new account elsewhere, use it a while, then close the old. It's a good rule of thumb to avoid this type of thing happening.