Getting a small bank to do a charge back that they are refusing to do.?

Please if you answer this be very specific site your sources.

My mom called me because she started getting an automatic payment deduction from her checking account that said something about student loans. Turns out after a lot of phone calls DirectLoans.ed.gov did something where a bunch of accounts are now handled by a company now called Mohila they are not a collection agency and they did not buy the accounts they are just now managing them. Anyways, my mom NEVER had auto-draft payments with Direct Loans and she simply had wrote a few checks to them 6 years ago and they in the change over happened to run that account number and started auto-drafting from her account.

Her bank was stupid enough to tell her that it's the gov and they can do anything and we can't charge it back. So now what? I happen to be fairly certain that the bank can reverse just about any automatic withdraw for many reasons. I know this because I have had Chase charge back many ACH transactions and although they are very reluctant to do so when there is an error on the other people side they need to charge it back.

So what do you do if the bank is a small town hick bank and doesn't know what they are doing?

Update:

Thank you so much sing that was basically what I was looking for. Chase always sent me something to fill out when I had them charge things back but they always charged it back immediately but then warned me if I do not fill out the form and the people dispute it that it may be voided.

Update 2:

>>>>>>

Well in a matter of seconds on the phone what "sing" said seems to be bang on but they are saying that there is a limit of (2) months now. Is this correct and if so what is the other thing the bank needs to do to take care of the rest of the charges. When an ISP that had never provided me service had charged me for 6 months without me realizing it Chase was able to charge back all 6 months BUT this was in 2004 not sure if that matters or not.

4 Answers

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  • 8 years ago
    Favorite Answer

    PROVE to the bank that the ACH was fraudulent. Unless you can meet that burden, they will trust the transaction. This is an excellent example of why automatic payments can be terrible.

  • Anonymous
    8 years ago

    Looks like you have already had some sound advice there. Allso it is worth nothing that NO NOBODY HAS THE RIGHT to do that to you it smells like something from a horses *** need I say more?!

    Do not let them put this pressure and bully you, fight back otherwise they will walk all over you

    By the way I had student loan and am disabled cant work for job I qualified for leaving me in debt and unable to pay I was told by citizens advice (do you have that whe you are?) that after 10 yr the case is closed and they can do f all however things may have changed since then as that was 10 yr ago I have been running from them for 10yr they finally gave up they were areas holes taking houses from people in wheelchairs and putting em on street

    Get legal advice they can not do this to you,can your mum change bank? FYI did you know that they would have to take you to court first before taking money from you allso they by law should be asking about what you can afford to pay not just make demands

    Good luck my advice is get legal advice it is worth paying for as these people are bullys

  • 8 years ago

    Did your mother co-sign for those student loans? If so, she may be out of luck. If you have not been making on time payments, this new management company may be legally able to draft the funds from her account that had previously been authorized to for payment via checks.

    Source(s): BD
  • 8 years ago

    Banks have to follow Federal Regulation E guidelines. Have your mom call her bank and file a Regulation E dispute. Legally, the bank will have to comply.

    Be aware: Your mother may have to prove that the charge was not authorized.

    Source(s): 10 years banking experience
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