If the bank finds the error that occurred, not the customer, is the bank required to send notification of the error or it is just a courtesy?
I have a question regarding how far does a customer's authorization go? Our bank is experiencing several charges, identified as POS, from an Internet service provider for customer accounts, which at the time of the charges, were closed with zero balances. The bank sends the network a balance file every night to The Midwest Money Access Services (MAC). When customer account balances are zero or the account is closed, how could the charges continue to be charged to the bank? When we talk with MAC representatives, they say that the service provider has the authority toinitiate the charge based on the prior customer authorization. They say this situation is like a recurring loan payment.
Do you know of any law or regulation that prohibits or allow banks to charge an overdraft fee for an electronictransaction if that transaction overdraws the account?