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Bank claims money owed, unable to provide details of debt
Last week, I attempted to open a business checking account with a local bank. I was informed that another bank had in some fashion frozen my ability to do so over a claimed debt of ~$200 USD. While I had once (over 10 years ago) had an account with this other bank, and never closed it, I have not used it in over 10 years. I never once received any communication from this bank that there was a problem. I contacted this bank & was told that the debt was in their computer, but they didn't have any information on the debt, only that their computer says it exists. IF I owe this money, fine, but without any information or proof of the legitimacy of the debt, I have a problem with it. If it's legitimate, it seems they should be able to provide information on it. I told them I wished to formally dispute the legitimacy of the debt. They're assuring me that it's legitimate, are refusing to investigate or provide proof because they can't, they've "upgraded their software, and the new platform doesn't have the information from the old one". Well, my computer says they owe me $20 million... anyone with a legal background have advice on how to dispute this claimed debt when the bank making the claim refuses to cooperate?
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I agree with Dragonflymagic concerning the fees adding up. What I think you should do though is after take them to small claims court and subpoena the bank records for the account. If they fail to supply the records the judge will order the account closed and any freeze they have inplace removed. You sue for $200 compensatory and what ever amount you think is proper for punitive damages up to but $1.00 short of the maximum amount for small claims court in your state.
Where I live the law on collections is that after two years without contact you are no longer legally responsible for that debt. You may want to find out what the law is in you state.
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I don't have a legal background but the only thing that occurred to me as I read, is that some banks will continue to charge month fees simply because an account is open, no matter what amount is in it, even if it is empty. So I would ask what the monthly fees are for an account there. You might just ask over the phone and not mention your name, just get that amount, and for ten years, that 120 months. So the fee may be very small per month but could add up. You might want to read any paperwork and agreement if you have any from the old bank when you signed up. They may not question that fact that the account is still open but no money in it ever in 10 years. This makes me wonder what a bank does if someone without relatives has died and they don't know and the empty account stays open for decades? YOu would think they'd question it.
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