Bank returned ESD back payments due to closed account - what happens next?

Unfortunately, this happens more often than you'd think. Once the bank returns the funds to ESD, it typically takes 7-10 business days for it to show up in their system. After that, they'll usually automatically reprocess the payment to your now-active account, but you should call to confirm and update your banking info. In my experience working with clients facing similar issues, you should check that your bank account information is correctly updated in your ESD profile to avoid any further complications.

OMG this EXACT thing happened to me last year!!! My bank said I was inactive for too long and closed it while i was waiting for ui benefits. It took almost 3 weeks for ESD to show the return in there system, then another 2 weeks to resend. Make SURE you update your direct deposit info on eservices right away!!! Dont wait for them to tell you to do it.

I had a similar situation back in January. Here's what worked for me: 1. Update your direct deposit info immediately in eServices (even though you reopened the same account, update it anyway) 2. Call ESD every 3-4 days to check if they've received the returned payment 3. Once they confirm they've received it, ask them to expedite the reissuance 4. Request they add notes to your file In my case, it took about 18 days total from when the payment was returned until I received it again. The system doesn't always auto-reprocess these payments - sometimes they get stuck in a queue and need manual intervention from an agent. Keep detailed notes of every call - name of agent, ID number, what they told you, etc. This will help if you need to escalate later.

I've been on unemployment twice and my advice is DOCUMENT EVERYTHING. Take screenshots of your eServices account showing the payments were sent. Get statements from your bank showing the account closure and reopening. Write down dates, times, names of everyone you talk to. ESD is notorious for 'losing' information and making people start processes over. Keep calling daily - early morning (8:00-8:15am) is usually best.

I work with UI claimants regularly and I recommend using Claimyr to get through to ESD quickly. Instead of waiting hours on hold or getting disconnected, they'll hold your place in line and call you back when an agent is available. Really helpful for situations like this where you need to speak to someone ASAP. Check out their demo video (https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3) and website (claimyr.com). It saved me hours of frustration when helping clients with returned payment issues.

Hey there, just wanted to update that I had a similar situation in November. My payments were returned because I'd entered my account number wrong (transposed two digits). In my case, the timeline was: Day 1: Payment sent to wrong account Day 8: Bank rejected payment back to ESD Day 14: ESD system showed the returned payment Day 16: I called and asked them to reprocess it Day 21: Money appeared in my correct account The key was calling and specifically requesting they "reprocess the returned payment" - the first agent I spoke with just told me to wait, but when I called again and used those specific words, they did something on their end that moved it along.

My roommate went thru this exact thing and ESD is so incompetent they told him 3 different stories about what happens next!!! First they said it would auto-process, then they said he needed to fill out some special form, then another person said there was no form but they'd "note his account." FINALLY he got someone who actually helped and it turned out they needed to manually reissue the payment. But get this - they were about to send it back to the SAME closed account until he caught their mistake!!! The whole system is a joke.

Just to add one important detail - when your payment is returned to ESD, it goes into what they call their "refund queue." This is different from their regular payment processing system. Once it's in that queue, a financial specialist needs to process it and move it back to the payment system. That's why it takes extra time and sometimes requires you to call and request specific action. Make sure your banking info is 100% accurate in the system before they reprocess it.

I went through this nightmare scenario about 6 months ago and it was absolutely maddening. My credit union closed my account during a "routine review" while I was waiting for my UI benefits. Here's what I learned the hard way: The moment ESD gets the returned payment back, they put a HOLD on your claim until you update your banking info. This is the part nobody tells you! Even if you reopen the same account, you MUST go into eServices and re-enter all your direct deposit information or they won't release the payment. In my case, I waited 3 weeks thinking it would auto-process, but nothing happened. When I finally got through to someone, they told me my claim had been on hold the entire time because I hadn't updated my banking info after the return. Once I updated it online, the payment was released within 48 hours. Also - don't just update the routing and account numbers. Go in and literally delete all the banking info and re-enter it fresh. Sometimes their system glitches if you just edit the existing fields. The whole thing took me 26 days from start to finish, but 23 of those days were my own fault for not knowing about the hold. Save yourself the stress and update your direct deposit info TODAY, even though you reopened the same account.

This whole situation is such a mess and I feel for you! I went through something similar last summer when my bank randomly decided to close my account due to "inactivity" while I was waiting for benefits. Here's what I wish someone had told me: Call ESD FIRST THING Monday morning at exactly 8:00 AM - like literally have your phone dialing at 7:59:59 AM. The call volume is lowest right when they open and you're more likely to get through. I tried calling at random times for days and kept getting that stupid "high call volume" message. When you do get through, ask to speak to a "financial specialist" specifically about returned payments. Regular customer service reps often don't have access to the refund queue system that Andre mentioned. The financial specialist can see exactly where your payment is in the process and manually push it through if needed. Also, get confirmation numbers for EVERYTHING - when you update your banking info, when they say they'll reprocess the payment, etc. I made the mistake of trusting verbal promises and had to start over multiple times. The silver lining is that once they actually reprocess it, the money usually hits your account within 1-2 business days since it's already been approved. Hang in there - this will get resolved!

I'm going through almost the exact same thing right now! My bank closed my account last week while I was waiting for my back payments (around $6,200). I reopened it immediately but ESD hasn't processed the returned payment yet. Reading through everyone's experiences here has been SO helpful - I had no idea about the automatic hold or needing to specifically ask for a "financial specialist." I'm definitely going to follow Andre's advice about deleting and re-entering all my banking info in eServices, and I'll be calling at exactly 8 AM Monday using Nia's strategy. It's frustrating that we have to become experts in their broken system just to get our own money, but at least now I feel like I have a game plan instead of just waiting around hoping for the best. Thanks to everyone who shared their timelines and specific steps - this community is honestly more helpful than ESD's own customer service!