Collection Agency dipping into my husband's bank account?

Question

My husband owed on one credit card totaling $300.00. A collection agency called in June and stated he now owed $900.00...but they would take whatever he could give them at the time. My husband wrote them a check a month ago for $500.00 and the woman on the phone with the agency said things were squared away.....

.....then today, this same collection agency withdrew a total of $1565.00 in addition to the check my husband just sent...totaling over $2,000.00. We are beside ourselves but figure they had the checking account number and decided to withdraw for more money.

The bank will not stop payment and there is no answer at this collection agency.

Is this legal?? My husband and I are devastated and do not know where to turn next.....a lawyer??

Answer 1

it could be that your husbands identity was stolen I would try to get a hold of someone at one of the three credit agencies or the collection agency as soon as possible and ask what the debt was for. also get a lawyer ASAP
I hope everything works out and good luck I will post more info if I find any =)

Edit:

HERE IS WHAT RIP-OFF REPORT SUGGESTS YOU DO:

Go to your bank within 60 days of the charge, or as soon as you know about the charge, don't delay, and tell them that there has been fraudulent activity within your account. Explain that you wish to file a dispute, and demand that they assist you in accordance with Federal Regulation E.

According to the majority of victims interviewed by Rip-off Report, those who immediately called their banks to dispute the charges did not get very far. Many victims got the following responses from their banks: “we could not do anything for you" or “you waited too long; it has been more than 60 days".

If the bank is says that you have waited too long, explain to them how you called their 800 number as soon as the charges were found, and were told by the bank that nothing could be done. Remind the bank that they failed to assist you properly at the 800 #, and instead, provided you with an inadequate explanation of your right to dispute. Tell the bank that it's their fault time has expired, and since they gave you the wrong info to begin with, they will just have to deal with it, take the loss and reverse the charges.

Tell them the truth; this was unauthorized and your account was NOT to be charged! Keep emphasizing how you never authorized anything! Direct them to the hundreds of victims reports that were filed on Rip-off Report.com. And if you're at the bank, walk them over to their computer and make them go to this site! If you are on the phone with them, tell them you will wait while they access this site! Either way, be persistent!

DO NOT TAKE NO FOR AN ANSWER!

Let them know nicely, that you were advised to Report them (the Bank) and this situation to the Banking Commission in your state. Since each state has a different name for the agency/controller over banks, find that name before you call or get to the bank so you can throw it in their face. The more knowledgeable you appear to be, the further you will get.

And just continue to demand the Federal Regulation E form! The bank CAN, MUST and WILL reverse the charge! But, you must be persistent; ask to speak to the supervisor or the area manager for all the branches in the state.

Let the bank personnel know you are meeting with the media later in the day, that you would much rather they do the right thing (as most other banks have) by looking at the complaints and immediately reversing the charge(s) to your account; no matter how long ago it was. Be sure to call the Media if necessary so you are telling the truth.

If you have to, be loud (but nice) in front of other customers. If you are just calling by phone, the above tactics should still work. The bank can easily fax or mail to you the Federal Regulation E dispute form.

I hope this helps =)

Answer 2

while we'd know what to do in a situation like that, well we don't know exactly what to do in your situation because we don't have all the details.
Ok so he owed $300, so far that's ok, but he should have paid the$300 to the place he owed and not to a collection agency. I think the collection agency was a sham and were guessing at what he owed, maybe they even pulled his information offline. We don't know who he dealt with.

So first of all I'd say contact the Attorney General of your state and tell them you were scammed. They will go after that company but won't do it for "you" they'll do it as a public good instead. So your husband should contact the credit card company where he owes the $300 and talk it out with them.
Your husband won't get back the over $2,000 he sent them but if he pays the credit card company directly then he will at least get the credit card company off his back.

People say to contact an attorney, and you could because it's theft, but these scammers are sharp and probably are long gone. Take your loss and verify it to the best you can, then contact H&R Block and ask them if you can take a loss like that off of your Income Taxes when you file.

Answer 3

There are some questions you need to ask yourself.
1. Did you receive a letter from a lawyer about this debt?
2. Did you receive a summons and court date concerning this debt?
3. Did you ignore the collection agency when they tried to call you?
4. Do you have the name of the collector that said the payment would be accepted as full and did she send you a paid in full letter?

I work for an attorney that sues and garnishes wages and bank accounts for collection agencies.The only way a collection agency can take funds from your account if there was a garnishment accepted from the courts. There are many steps that are taken before we can get accounts garnished. I don't know if the law is different in your state but in mine you would have to of had a notice sent from the collection agency, and a notice sent from the law firm. We have to serve the debtors with a summons that gives them the court they could dispute the debt with. We also have to put in detail notes every time we talk to a debtor. Find out the laws in your state and get a lawyer if the collection agency did not follow all the proper steps! It will probably take a long time before you can get your money back if you do... that's the way the court system is.. Sorry for your predicament.

Answer 4

You need to get a lawyer and also call the police about this and give them all this info you just said on here. No bank can deny you a stop of payment. If you didn't authorize it and you have asked the bank to stop it they HAVE to stop IT. If you lose that money, the lawyer can help you sue the bank for it. Close your account and move whatever money you have left to another bank. Don't deal with the same bank again. If you have the name of this so called collection agency and you know where they contacted you from, you can call the BBB (Better Business Bureau) and find out if they are real. This sounds like you've been scammed big time. Next time this happens call the creditor they claim to be collecting for before you make any payments to them and give account info. Good Luck!

Answer 5

No collection agency is authorized to do this unles you gave them the checking account info and agreed to payments. There is a lot of scammers out there and this is what they do. I had similiar situation lastg year when suddenly some collector called me on a credit card I closed 2 years prior, and didn pay the balance as I was still disputing it with my ex. I knew I owed $489.00 and the credit card sent me balance of 600something , the agency was telling me that I owed 1239.00 but they will settle for 325.00 if I pay it all. WTF?
I said no. Then 2 months later some I pulled my own credit and called the collection agency listed on my credit report to pay this account. I only owed 400some dollars but this was not the same agency that contacted me in a first place.

Answer 6

Below is the website for the Federal Trade Commission that will give you more information. I know that in some cases they do garnish assets, but this an established process. The Federal Trade Commission has the following for you to review under the "CONSUMER PROTECTION" tab:
Fair Debt Collection
Answers commonly asked questions about your rights under the Fair Debt Collection Practices Act, which requires that debt collectors treat you fairly and prohibits certain methods of debt collection.

Answer 7

Close you account now, Call your local police department and file a report of theft. Have all of your paperwork and present it to the police. What may happened some bogus company bought your account for pennies on the dollar and YOUR info. Now they have a account number and continue to play games. These people are professionals and very intelligent. Get that account close right now... The bank may be forced by the police to stop the payment.
good luck

Answer 8

Unless they have a judgement against your husband and your state allows garnishment of assets, your bank cannot allow someone to withdraw funds from your account.

Speak to the bank manager and determine why they have debited these funds. If there is a judgement, the agency will have been awarded legal and services "damages" for the collection of the debt - very few states, however, allow garnishment of assets or wages except in the cases of debt to government agencies (e.g. taxes or child support).

If the bank can't produce a court oder, demand your money from the bank - they are at fault and report the collection agency to the Better Business Bureau...good luck!

Answer 9

It is not legal...are you absolutely positive that the collection agency is legit? It sounds like a scam. i would call the credit card company and see if they actually sold your debt.

I would demand that the bank look into this. You need to make sure they understand that you NEVER authorized the transaction and that you want to innitiate fraud charges against the company. I would also call the police.

I wish you luck...most collections agencies buy the debt for less then the balance and they will accept less then the total amount for settlement...this sounds really wrong.

Answer 10

YOU TELL THE BANK YOU DID NOR AUTHORSIZE THAT!!! They have to investigate a fraud, if you did not authroize that then you are well within your rights and the bank has to get off their bottoms and check into it and do something about it. I have had things like that happen before, not take out money illegally but take out too much or the wrong amount. The bank is the one who told me to out it in as unauthorized and they do inverstigate. DO NOT take this lying down, they had no right to do that. You only need a lawyer if the bank comes back with a finding that they think you did aurthorize it.