Dear shortandcute,
I can't say anything about the legality of what they did but I would send a email to the banks corporate office. The fact that you showed up before 4pm to settle this matter and the deed was already done, I would call the National Association of/for Banking and Insurance 1-800-446-7476 and speak with somebody.
Also file a complaint naming the branch and the person whom you spoken with,if you do not know the names go back to the bank and get a card from the person, they cant say no.
All activity on your checking and savings accounts have a time and date ask for a copy of 3 month period on both accounts be calm/smart about things.
There are antitrust laws and the banks are forced to follow policy.
You may not be the only one.
First follow a complaint, Make sure to print a copy of your complaint and ask for an investigation for your records. Using e mail is a way to prove your case.
The worse thing you can do is do nothing
Go in calm and reaffirm that there was a misunderstanding
I hope this can be resolved peacefully and calmly.
2nd bring a copy of your mortgage and policies to legal aid to make sure this was a legal contract.
Any company whose contracts states they can change the rules at any time isn't bondable.
Verizon was sued because of this. Many banks that pre pushed paperwork were fined and forced to revise mortgages.
And them digging into your accounts is a separate legal matter.
Hope this helps,
H.
If not then go mad dog and speak with the branch manager ask for a resolution and if denied tell them you will be contacting the local paper/authorities/ and a lawyer.
BIG BANK little customer makes big headlines!