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MIAMILAW1127
MIAMILAW1127, Lawyer
Category: Legal
Satisfied Customers: 731
Experience:  Founding Partner at Moises Law, P.A.
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Does my bank have a legal obligation to notify me that I

Customer Question

Does my bank have a legal obligation to notify me that I could have requested ACH transactions to be rejected if there were insufficient funds? I notified my bank that I could not stop automatic payments and they would only stop those payments if they weren't authorized transactions. The payments where authorized when there were funds in the account, but once the account became negative the merchant automatically makes 3 additional attempts. The bank says I should have requested the transactions to be processed differently, but I was never told that option when I notified the bank that I could not stop the payments.
JA: What state are you in? It matters because laws vary by location. Has anything been filed or reported?
Customer: New York State (New York City). I am in the process of filing a commercial claim in small claims court.
JA: Anything else you want the lawyer to know before I connect you?
Customer: I've dug a little through the public law library so if there are cases worth looking at that is helpful.
Submitted: 1 month ago.
Category: Legal
Expert:  MIAMILAW1127 replied 1 month ago.

Hello. Thank you for contacting me. I am a consultant here and I am looking forward to assisting you with your question. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Please be patient as I will be typing my responses to you from scratch. Also, I can only answer/address the questions you ask specifically based on the information your provide. Please try to provide as much information as possible so I can best assist you.

Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

The bank does have an obligation to provide you the different options available to you as a consumer so that you avoid a situation like this. However, in this situation, you are in the unfortunate position where you don't have much recourse against the bank except for arguing with them to remove any overdraft fees related to the processed transactions.

I hope this helps. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Thank you.

Customer: replied 1 month ago.
If they have a responsibility to inform me, then why don't I have "much recourse"? Previous transactions that had insufficient funds were returned unpaid without any fees applied. Doesn't that establish a reasonable expectation that similar events would be treated as such? I don't really understand why I don't have "much recourse".
Expert:  MIAMILAW1127 replied 1 month ago.

Because legally, it will cost you more money to pursue them through court than in what you had to pay in late fees. It simply wouldn't be worth it.

Your best bet is to deal with the bank directly in an attempt to have the fees returned, especially based off of their previous behavior.

Customer: replied 1 month ago.
I'm asking for direct legal references, which I stated in my original question. I can choose to file a small claim or a commercial small claim. The cost is very small compared to the $600 they want in fees.
Expert:  MIAMILAW1127 replied 1 month ago.

Your original question does not ask for case law. If that is what you are looking for, I will opt out and allow another expert to assist you. Please advise.

Customer: replied 1 month ago.
This is from my original question:
"Customer: I've dug a little through the public law library so if there are cases worth looking at that is helpful."
Please opt out so that I can receive assistance on case law rather than opinions.
Expert:  MIAMILAW1127 replied 1 month ago.

That was not copied on to the chat when the question was sent to me by the website.

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