Does a bank have any legal requirement to notify a customer if it temporarily freezes their account for possible identify fraud and consequently bounce incoming checks and auto debits? Especially if there was no fraud.
Ally left voicemail for my wife to call them. When she returned call she of course knew her SS#, birthdate, etc but she could not answer what was her online username (she rarely uses) or the amount of last deposit, so Ally would not talk to her. Fine, they are being careful.
Unbeknownst to us, however, they also froze our checking account for next two days while they investigated and proceeded to bounce several incoming checks, including her student loan auto debit. We never received any notice from Ally and there is no indication in our online account that outstanding checks/debits were ever presented and then rejected. There was plenty of money in the account at all times. Several weeks go by and Navient writes saying her student loan account was delinquent with fines and auto debit now cancelled. Other people called complaining our checks had bounced and they had fees.
When I called Ally to find out why this happened they explained this was just their procedure when caller identification fails and “sorry for any inconvenience.” If you can’t remember your third cousin’s middle name tough luck to you. Your money is frozen.
I’m ticked off and want to complain to the CFPB or whoever regulates them. Surely if they freeze a customer’s account because of suspected fraud they should have some obligation to notify the customer. Don’t they?