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One4juju · Sep 2, 2008, 07:14 PM

My girlfriend owed a large amount on her credit card. Due to the sudden deaths of several close relatives, she lost interest in making payments. I got involved and she was given a payoff amount. She then authorized the bank to take payment from her bank account. The payment was never taken, and several months later, we began receiving phone calls from the creditor. We then sent in payment in the amount previously quoted. Recently, we began receiving phone calls again asking for the interest accumulated in the time frame between when the first payment (3/07) was authorized and the time the check sent was processed by our bank (1/08).
I have taped conversation with them telling me that the payment had attempted to be processed, but was returned NSF and the bank statement from the account showing a more than sufficient balance during that time frame. Given the current economic situation, I am sure that I am not alone in this situation. Would I owe the interest or are they negligent?

ScottGem · Sep 2, 2008, 07:17 PM

It depends on why the payment was returned NSF. If it was due to a mistake on the bank's or creditor's part, then no.

One4juju · Sep 2, 2008, 08:32 PM

There was no NSF. They told me this, but my bank statement doesn't support this claim.

ScottGem · Sep 3, 2008, 06:21 AM

Well we run up on a conundrum here. So you authorized payment and they didn't process it for several months. What were you doing during that time? Didn't you notice the money hadn't been debited from your account? A court would hold that you had some responsibility for following up on the payment as well. So I'm not sure if they would credit you the interest. Maybe you should try to negotiate a settlement on that part.

JudyKayTee · Sep 4, 2008, 07:02 AM

Originally Posted by ScottGem

Well we run up on a conundrum here. So you authorized payment and they didn't go ahead and process it for several months. What were you doing during that time? Didn't you notice the money hadn't been debited from your account? A court would hold that you had some responsibility for following up on the payment as well. So I'm not sure if they would credit you the interest. Maybe you should try to negotiate a settlement on that part.

Agree with Scott and will add that having money in the account and having AVAILABLE money in the account are two different things.

Possible to have sufficient funds in writing but a deposit has not yet cleared so that money cannot be accessed.

Seems like a matter - concerning the failure to do the withdrawal - of taking the paperwork authorizing the payment to the Bank and asking them to pay the interest. If they refuse, I'd go to Small Claims Court.

One4juju · Sep 5, 2008, 01:25 AM

Well, account was held in a bank which she doesn't normally use and I don't keep track of. Money was from her late husband's insurance policy. Not our daily checking and savings banks. There was no deposit activity other than the policy monies, but that totaled well over the payment amount. Kind of a sticky situation for me, I hope you understand. Anyway, tried to make a settlement with the bank and they are trying strong arm us. They do not seem interested in a settlement. I'm liking it to, I sent my creditor a payment, they stuck it in a drawer for 6 months charging interest the whole time, then cashed the check. Now they're looking for a little extra profit.

JudyKayTee · Sep 5, 2008, 06:42 AM

Originally Posted by One4juju

Well, account was held in a bank which she doesn't normally use and I don't keep track of. Money was from her late husband's insurance policy. Not our daily checking and savings banks. There was no deposit activity other than the policy monies, but that totaled well over the payment amount. Kind of a sticky situation for me, I hope you understand. Anyway, tried to make a settlement with the bank and they are trying strong arm us. They do not seem interested in a settlement. I'm liking it to, I sent my creditor a payment, they stuck it in a drawer for 6 months charging interest the whole time, then cashed the check. Now they're looking for a little extra profit.

What is her proof of the request that the money be withdrawn?

One4juju · Sep 5, 2008, 02:34 PM

Received confirmation number and name of representative in March 2007 of transaction authorized. Confirmation number contained reps company id number and check number. I feel as if they are not consistent in the information that they are relaying to us, first with "cannot find a record of the authorization", then with "the check came back NSF", now with "you have no legal basis and you will live with this debt". I don't like feeling bullied.