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I got this email once because I had made an e-Check deposit to Bodog on literally the day that their e-check processor (Citadel) decided to withdraw from the US. My email came a month or two after I had made the "deposit" and I ended up using my debit card to settle the debt, but your situation is a bit more mysterious. I would just reply to them (or call them) and ask them how is it that you owe them $700, and can they please provide proof that you do indeed owe them the money. Make sure you have your bank or credit card statements handy in case they are incorrect.
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