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Dwayne B.
Dwayne B., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 32369
Experience:  Practicing for over 20 years and handled many cases and trials for consumers.
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Regarding Banking procedure: In November of 2015, I was

Customer Question

Regarding Banking procedure:
In November of 2015, I was supposedly late in making a payment that was supposed to be automatically debited from my senior checking account at Rabo Bank, Corning , CA.
I brought a check into Rabo Bank to cover this payment and wrote it in my check register.
It did not show up in my account nor was it debited from my checking account at B of A. I was not notified of this situation, nor when a second payment was missed in the automatic system, since two payments were due, and I only deposited enough for one payment in December of 2015.
I then received a default letter from Rabo Bank dated Dec. 30, 2015. They also put a hit on my credit score, which is the crucial point in all of this. It is stopping me from refinancing the property and causing havoc.
It should be noted that when I was notified of the problem on Dec. 30, 2015, I immediately took care of the payments.
I asked them to remove the negative credit reports, but they would not. I have written and talked to their main office in Santa Maria, CA to no avail.
I was always available for communication via physical contact, e-mail, phone, and mail.
Does the bank have any obligation to keep its' customers informed of potential problems with their accounts? This could have all been avoided with one simple call.
Submitted: 9 months ago.
Category: Consumer Protection Law
Expert:  Dwayne B. replied 9 months ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts.

As a general rule, there is no obligation under the law for the bank to inform a customer of an issue such as you describe. If it had moved forward to a foreclosure a lack of notice is a defense, but not as to them placing information on a credit report.

There are exceptions to the general rule but the only one which I've ever seen is if the bank, either in their advertisements or in their documents, puts extra duties and responsibilities on themselves. As an example, if they state they will never return a check without notifying the account holder first, then they have contractually obligated themselves to follow that rule, even though no such requirement exists in the law.

What you may want to do is gather all of the paperwork, emails, letters advertisements, etc. that you have seen from the bank and get a local lawyer to review them to see if they may have inadvertently placed some additional obligation on themselves. If they did, and then failed to meet that obligation, you have a lawsuit for breach of contract.