Business taking money out of my account?

Question

I have been noticing recently in my checking account that for some reason I have been getting a negative balance. Well I just started to do online banking and seen a history report of my checking for the last three months and there has been a tanning salon that has been taking 21.99 out every month and I had no idea till today. I had a membership with them back in 2005 and cancelled it. Now here it is 2008 and they are still taking it out and I feel like a dummy cause I never noticed it being I had money in there all the time in my checkings. Do you think they will reimburse me for all this time? I called them today and the lady is going to speak with the owner. I mean that is almost 700.00. Thanks...

Answer 1

You may have difficulty proving you cancelled your membership unless you have something in writing.  You may need to close out this checking account and open a new one in order to stop the salon from taking the funds from your account.  Electronic transfers (called ACH debits) are very difficult to stop payment on.

Notify your financial institution that those charges are unauthorized.  You may be able to get any charges made in the past 60 days refunded, but beyond that you have missed the time limit for disputing an electronic transfer.

Notify the salon in writing and send your letter by certified mail that you have cancelled your membership and they must immediately stop deducting funds from your checking account.  Review the terms of your contract and look for any documents that show you cancelled your membership.  If the salon does not refund your money, and you have documentation that you cancelled that membership, then you can take them to small claims court.

I recommend you close that checking account and open a new one to prevent them from taking any more of your hard-earned money!