Hello, I have a bad situation now. I made a verbal agreement over the phone with a collection agency to pay off a freinds debt. I was at work at the time so I did a 3way conversation w/ my friend, the collector&me. I have my friend permission to give this man my bank account info. I live in NY and hte agency was in Ca so by state law this was the only way I could pay. I decided that I dont want to pay for my friend. can the agency take any action against me since i made a verbal agreement. The agecy issued a check w/ my bank info and it was being used to take the money out of my back account. my bank sent the check back to them since i didnt give authorization (meaning my signature) i asekd my bank if my authorization over the phone would be good enough and they said no. I dont want to the bothered w/ this cause its stressful. my main question is can the agency do anything to me if i tell them i dont want to be a part since i made this agreement over the phone. pleeease help!
2007-10-10 15:54:52 · 6 answers · asked by JC 1 in Business & Finance ➔ Credit
No not at all, just tell them to leave you alone.
2007-10-10 16:00:09 · answer #1 · answered by sippers 4 · 0⤊ 0⤋
There are two types of payments by check. Normally collection agencies use what is known as ACH(Automated clearing House) Transfers. So there is not even a physical check that is sent to a bank, it is just through a transfer. These do not require a physical signature. Now, if they physically did send a check without a signature the bank would return it. However, I would double check on this because if they are a collection agency they would know that it won't get cashed without a signature.
The collection agency will not come back to you, but because it was on your friends debt they will probably charge her a returned check fee and increase the amount she owes. Now, your friend could attempt to make a case that said you did agree to pay, but that would be between you and her and not you and the collection agency.
Now with that said here is some advice. NEVER.. NEVER.. NEVER make a verbal agreement with a collection agency. Everything dealing with a collection agency needs to be done in writing. Before your friend sends any more money(from whoever), she needs to have it in writing the amount she will pay and that it will satisfy the account. You should also have her make sure that they will delete the collection account once it is paid.
2007-10-10 16:14:52 · answer #2 · answered by OC1999 7 · 1⤊ 0⤋
Well first off the bank is wrong and they can issue the check to your bank for a draft. That is how you can buy things over the internet or on TV it is called check by phone.
The only way this isn't going to happen is if you have a signed statement at your bank stating that all drafts must have your signature, not signature on file type of thing.
Secondly, as far as you paying off your friends debt. Why did they contact you in the first place. Are you a co-signer on the debt. Did you co-sign a loan so that your friend could get a better interest rate or even get the loan to begin with.
If you are not on any initial agreement such as a co-signer than they legally cannot do anything to you to get their money. The original agreement was between your friend and them. They never should have contacted you in the first place.
2007-10-10 16:01:49 · answer #3 · answered by ddkmom3 2 · 1⤊ 0⤋
You are very lucky your bank refused that check. I am very surprised the collection agency didn't just do an electronic transfer. Make sure your bank won't allow them to pull money from your account.
First, they lied about state law that you had to give them your bank info. NEVER give a collection agency access to your bank account.
But why would you agree to pay our friend's debt? Tell your friend you changed your mind. Send a letter, certified, return receipt, to the collection agency telling them you withdraw your authorization to take the money from your account.
2007-10-10 16:08:06 · answer #4 · answered by bdancer222 7 · 1⤊ 0⤋
Why would you agree to pay a friends debt? You gave them your banking info so I suggest you close the account if they already haven't placed a garnishment on it !!!! It is not your debt they can't make you pay it and if they try make them validate it is your debt and tell your friend to read creditinfocenter com and not to believe everything they say unless they put it in writing
2007-10-10 23:53:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Don't ever take on another person's debt. Period.
Also, they can not make you responsible for this person's debt.
You can help them pay - but you will not help them learn.
2007-10-10 16:11:57 · answer #6 · answered by Makes Sense 3 · 0⤊ 0⤋