Anyone ever lose a direct deposit?

[RachelEllen]

Hi,

Has this ever happened to anyone? I changed checking accounts and went through the entire process at work to change my direct deposit. I waited over a month to close the old account. I was assured that the direct deposit was updated. I even waited until after a paycheck was deposited in my new account.

And now, they just deposited a huge overtime check (6 weeks worth!) into the account that does not exist anymore. My work can't do anything because they have no proof that I don't have the money. The bank acknowledges that they have the 'money' but cannot give it to me (closed accont) and have to let some process take place before they notify work that it can't be deposited. Meanwhile, I'm in huge paycheck limbo (and we wanted to book a disney trip for February

Anyone else ever deal with this? How long did it take to straighten out? Not to use numbers, but this money is over 10% of my entire salary!

 

[BrerMom]

 

[mudnuri]

Seems easy to fix to me, but I'm not a banker...

have the employer withdraw the deposit...or in other words, cancel it.

They have got to be able to do this, what if they transposed a # or 2 in your account to begin with, would they NEVER see that money again? I doubt it...there would be a way to get the money back.

I'm not sure the issue with the bank not giving you the money, it's obviously yours- a routine direct deposit from the same employer who use to deposit..

This is why I will not do direct deposit. The 2 minutes it takes me to drive thru the teller every other week is worth it! There's been times at my work that the computer's have been down, either at work or at our works bank, and DD's have not gone thru till the next day.

Luckily we get paid on Thursday morning, so the bank never has a line at 10am on that day!

Good luck, but I'd ***** heavily about the employers screw up!

Brandy

 

[canwegosoon]

Another option is that all banks are required to have a free account. Open one, and have bank deposit money there. Close as soon as you can after no penalties. Good luck

 

[dcgrumpy]

I've had that happen to a couple of people at work. In all of the cases, the bank sent it right back to the company and payroll cut a special check the next day.

It's been my experience that the company can't cancel the deposit. I actually overpaid myself by more than $1500 once . I caught it right away,but payroll had no way top cancel it. I had to have it deducted from my check over the next 3 pay periods.

 

[m&m's mom]

Have your employer do a "trace" on the direct deposit. The bank has 5 days to reject your direct deposit. Is usually does not take that long.
As soon as your employer receives the funds back they have proof the money did not go in your account and they should write you a manual check.
It sounds like you did the right thing and your employer messed it up. If you already had funds deposited into the new account obviously they had done a prenote. They probably kept the old account set up and just did not delete it after the new one was through prenote.
Their error and no way they should make you wait any more than a couple of days to verify.

Good Luck!

 

[RachelEllen]

Thanks for the encougement all. I'll check back with the bank on Monday to make sure they 'bounce' the deposit. The payroll office refuses to cut a check until they get official word from the bank.

Unfortunately, it's not just a matter of having any account with that bank. I actually didn't change banks. I just got an upgraded checking account a the same bank. Since they know that both accounts belong to 'me' I don't know why they can't correct the error (I transferred money between the two accounts electronically in the first place), but they say they cannot.

I have to say, that it's the first time I've had trouble with direct deposit. I love it. No check clearing to deal with. I know exactly when the money will be there. I've never had a problem before. My bank has also been excellent with problems in the past. I had some fraudulent withdrawls from my Paypal account which bounced (I save almost everything and keep very little money in this account which collects the deposits). With just a faxed statement, they quickly refunded all the bouced fees. So hopefully, this will be just as esy to clear up.

Rae