Are collection companies allowed to debit from your account without permission?

Question

I recently bounced a check to a retail store. The check was put through again and cleared. 2 days ago, I received a letter saying I owed $25 for the NSF fee to the retail place. Today, the collection company put through a false check for the $25. Is this legal?

Answer 1

Are you in the USA? What state? Check state laws.

Answer 2

Depends on what state you are in. Also, check the policy of the store sometimes at the check out lane they have a notice ( usually on the place most people write their checks) says something like this "By writing a check in this establishment you authorize the store to electronically present your check to your financial institution does not honor your check" or something like that. Any way you're giving permission for the store to send it throough as many times as they want. The collection agency for the store may have the same rights, but I'm not sure. Like I said, check it out.

Answer 3

Check your state law - in my state it is against the law to credit an account without permission - a good legal suit if it is against the law - check and go for it! ALSO check and see if the $25.00 bounced fee is the amount allowed by your state law - if it's not - WHEE!@

Answer 4

It depends if you signed any document giving them permission. Sometimes there are hidden fees buried in the fine print. Call them and ask for copies of all relevent documents. You can also contact your bank and they will usually help you in recovering any fraudulent charges, or direct you to your state agency that handles this.

Answer 5

This is illegal. There is no right in which the company could take money from your account without your permission. Fight it. Cheers.

Answer 6

no i dont think thats legal not unless you owe them some thing then they will still need your permission

Answer 7

No they are not.