Can banks do this?

[Anonymous]

I have a checking account I don't use and it had a zero balance. I got a statement the other day and it says I am over 70 bucks overdrawn. There was a paypal charge for over 500 that went through twice. I don't have overdraft protection, so I cannot overdraft.

This bank is in another state and just a small town, generic bank. Can they do this? Can I close the account over the phone?

[DevonD83]

If it was fraud call and report it as fraud. Yes they can close the account after the fraud is done

[carterscutie85]

Did you make the paypal purchase in the first place? Why would you do that if you had a zero balance?

If you didn't make the purchase, I'd be concerned someone has your info..If you didn't authorize the charge you could possibly have to make a police report, etc if someone stole your bank info and used it.

[AnnLanders]

Yes, they are charging you two overdraft fees for bouncing.  It'll be a pain in the rear, but you can work with paypal and the bank to prove fraud.  Start with the bank and explain that it wasn't your charge, they may just refund the difference if they believe it was fraudulent. 

[Oceana09]

They won't let you close the account with a negative balance unless it's overdrafted for a certain amount of time and the bank itself closes the account. You can however, protest the two paypal transactions if you did not make those transactions. Although, I'm curious, and you can tell me to mind my  own business, but what's the point of having a checking account if you don't keep any money in it?

[Anonymous - Original Poster]

Quoting carterscutie85:

Did you make the paypal purchase in the first place? Why would you do that if you had a zero balance?

If you didn't make the purchase, I'd be concerned someone has your info..If you didn't authorize the charge you could possibly have to make a police report, etc if someone stole your bank info and used it.

Ummm, no I didn't make the charge.

[An0nym0use]

Then it's fraud. It's as simple as calling the bank and Paypal and explaining it. Close the account after it's been taken care of.

Quoting Anonymous:

Quoting carterscutie85:

Did you make the paypal purchase in the first place? Why would you do that if you had a zero balance?

If you didn't make the purchase, I'd be concerned someone has your info..If you didn't authorize the charge you could possibly have to make a police report, etc if someone stole your bank info and used it.

Ummm, no I didn't make the charge.

[Anonymous - Original Poster]

Quoting AnnLanders:

Yes, they are charging you two overdraft fees for bouncing.  It'll be a pain in the rear, but you can work with paypal and the bank to prove fraud.  Start with the bank and explain that it wasn't your charge, they may just refund the difference if they believe it was fraudulent. 

How can they charge me a bouncing fee if the pp charge wasn't paid?

[carterscutie85]

Then you need to tell them someone used your info without your permission. They will investigate and once they are sure you didn't authorize it they will close the account but possibly prosecute whoever used your info. $500 is a felony.

Quoting Anonymous:

Quoting carterscutie85:

Ummm, no I didn't make the charge.

[JDmommyJD]

Same EXACT thing happened to us. It was an account we never used.. Only has 13$ in it. Ebay out through a charge once for $400 i called right away. They took it off. They tried again, i didn't know. Next thing you know i find out they closed my account and said I owe $150. The hell I do.

[Anonymous - Original Poster]

Quoting Oceana09:

They won't let you close the account with a negative balance unless it's overdrafted for a certain amount of time and the bank itself closes the account. You can however, protest the two paypal transactions if you did not make those transactions. Although, I'm curious, and you can tell me to mind my  own business, but what's the point of having a checking account if you don't keep any money in it?

I opened it when I had planned on leaving my husband and needed my own money.