CreatureShop and Adaughter, the ugly fact is that it does happen. It's not exactly legal, but if you've *ever* given them that acct number and authorized an electronic debit, then it's been known to happen: when challenged, they say that what you thought was a one-time authorization was not limited to that one time.
If you have any electronic pay setup with a creditor you are going to go past due on, or just did a "one-time" electronic debit (like a payment by phone) with them, go ahead and open a second acct at a bank with which you have no prior affiliation. Do this NOW. Go ahead and do the forms at work to switch your paycheck direct deposit, and see if they can cut you a paper check if they can't assure you it will be done by the next payday. Or watch the acct and get your pay out immediately, depositing it in Bank 2. If you think this might end up being a big issue, start using money orders to pay bills, or even those prepaid Visa cards from WalMart. Even if you can't close the accts in Bank 1, you can make sure your money isn't sitting in them. Leave $1 in there if you can't close it outright for whatever reason.
Yes, it's a hassle. But it's much less of a hassle than finding out you have a cross-collateralization clause built into your credit union agreement as you're standing in line at the pharmacy trying to get your prescriptions paid for. Usually when they raid your acct because you're past due, they will NOT tell you beforehand, they just do it. Ugly and painful, but there it is. Good luck!!!
If you have any electronic pay setup with a creditor you are going to go past due on, or just did a "one-time" electronic debit (like a payment by phone) with them, go ahead and open a second acct at a bank with which you have no prior affiliation. Do this NOW. Go ahead and do the forms at work to switch your paycheck direct deposit, and see if they can cut you a paper check if they can't assure you it will be done by the next payday. Or watch the acct and get your pay out immediately, depositing it in Bank 2. If you think this might end up being a big issue, start using money orders to pay bills, or even those prepaid Visa cards from WalMart. Even if you can't close the accts in Bank 1, you can make sure your money isn't sitting in them. Leave $1 in there if you can't close it outright for whatever reason.
Yes, it's a hassle. But it's much less of a hassle than finding out you have a cross-collateralization clause built into your credit union agreement as you're standing in line at the pharmacy trying to get your prescriptions paid for. Usually when they raid your acct because you're past due, they will NOT tell you beforehand, they just do it. Ugly and painful, but there it is. Good luck!!!
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