Is it legal for a collection agency to take money from your bank account and leave you destitute?

Answer 1

When you get a loan from someplace you entered a legally binding contract to pay them back. They have every right to make you uphold your part of the deal.

Answer 2

A collection agency is very sneaky. You can tell they are lying if their mouths are moving.

I assume you were offered a payment arrangement and gave the collector access to your account for this supposed arrangement.

Then, they cleaned out your account. This happens all the time. Whenever you pay a collector, you should send a cashier's check or money order, and get all settlements/arrangements IN WRITING BEFORE you send them a dime.

Is this legal or ethical? NO. However, what can you do? You owed the money, and probably have no proof of the payment arrangement, and probably don't have the resources for a lawyer. This is why they get away with this.

Answer 3

Never heard of that one. Jeez, I better go close my accounts now! LOL.

If this collection agency had your banking info and access to withdraw from it then I am positive that it was legal.
Duh, why didn't you close the account before this happened?
my guess is that you couldn't. There must have been some sort of freeze on the account. You are not talking about a normal collection agency.

Answer 4

A collection agency isn't suppose to take money from your account unless they got a judgment against you or you agreed for them to take the amount out. That would REQUIRE them going to court and you WOULD have reserved papers.

Don't believe that just because you owe someone money they have the rights to just go in and take it at will. If you owe someone $10, then it's still illegal for them to break into your house or go into your purse to take it wtithout your consent. That lie is the SAME thing collection agencies want you to believe.

First CLOSE that account and reopen another one. If you send payments to a collection agency use a money order so they don't get your routing number and checking account number. Don't talk to the collection agencies on the phone. Tell them you prefer to handle business in writing and kindly hang up. They want you to agree to something on the phone so they can record it and possibly use it against you in court.

If you want to arrange a payment schedule you need to type up your terms, send it to them, have them sign and return the copy to you BEFORE you send them a dime. Make sure you send the mail to them CERTIFIED RETURN RECEIPT. That way someone there has to sign for it and you have proof.

If they offer you a "settlement". Don't agree to anything that you yourself haven't typed up and submitted. Always require them to sign and return the form to you. You need to make sure they will put "Paid In Full" on your credit report and won't sell the remaining balance to ANOTHER collection agency. For instance, you owe $3000 and they say they'll take $1000 and leave you alone, well they're known to resale the remaining $2000 and you're right back where you started from with a new collection agency. So put it in writing that the remainder can't be resold. If they're unwilling to do so then you don't need to deal with them anyway.

You do have rights. They're called debtor's rights and no matter what you owe, YOU STILL have your rights. Many collection agencies are unscrupulous, harsh, and lie. Arm yourself and be prepared. The fact is that MOST collection agencies buy the unpaid debt for pennies on the dollar and then try to get the entire amount owed to the original client who may have already washed their hands of it.

I know how stressful it can be, but information is your best weapon against the collection agencies. I'm not at all for the people who charge up tens of thousands of dollars and have ABSOLUTELY zero intentions of repaying it from the start. However, I know hard times can befall a person and then it snowballs to the point you're doing good to have a home and food in your belly. You must take care of your basic needs and don't let this stuff take the joy out of your life. When you are able to repay, then use the information you've gotten to get terms you agree with.

Answer 5

Did they take you to court and get a judgement against you? If they did, then they can. If they didn't and they just took it out, you have a serious lawsuit that you could win. If there was another person on your bank account, they can't touch it either. If you need to know more, my e-mail is [e-mail]

Answer 6

They have to first get a judgment from the court to garnish any wages or bank accounts that you have.

Answer 7

If you had unlimited liability on whatever happened, then yes.

Answer 8

I believe it is.