United Recovery Systems

[nazstar]

I just called them regarding my AMEX payment. I had given them approval several months ago for 6 electronic checks. But now that we're going to file for Chapter 7, I called to cancel the remaining checks. They said they aren't allowed to do that until I retain a lawyer and provide his name and number. Is that true? Can they refused to cancel the checks?

Now, I have to pay $25/check for stop payment so they don't debit my account for $550 this month and the following months. This sucks!

[FreshLikeADaisy]

I'm no attorney, but whatever your attorney can do, you also have the legal right to do: that "we're not allowed" is BS, I think.

Can you stop just the first check and write a very strongly worded letter to start with?

"With this notification, I specifically withdraw any prior authorization I may have given for American Express to make electronic withdrawals from my account at ABC Bank, # ___, and expressly deny my permission for American Express to make those, or any, withdrawals from my account at ABC Bank in the future.

American Express, with this letter, is instructed to cease and desist all electronic debits from my accounts [if there's more than one, name the others here] immediately and until future notice."

CMRRR, of course, and you might want to send multiples: one to their legal department and fax a copy to the jackass who told you they "weren't allowed." Does his momma tell him he has to be in bed by 9, too?

Anyway, these are my thoughts. But you're quite the resourceful gal yourself, I have no doubt you'll get it stopped. But don't spend $$$ on stopping the rest of the checks until you know you have to.

[isitreal]

I actually called a collection agency (as advised by an attorney) to stop a scheduled payment much the same. The agent said that she cannot cancel the payment as she has the agreement tape recorded from when I approved it 6 months earlier. She said, "In fact, you need to make other arrangement before the end of the month or we'll put nasty things on your credit". Okay, I'm paraphrasing, but it was that basic message. Like I care about my credit scores at this point. I just need to afford life.

When I was going over my assetts, etc with the attorney I mentioned this conversation to him. He just kind of chuckled and shook his head. Well, when he was reading my assetts back to me, he listed a potential lawsuit for $10k against this creditor. He said that it was illegal for them to not cancel the payment after my request to do so.

Of course, his recommendation was for us to put a stop payment on the check. But.. it was a LOT cheaper than the $400 payment.

To cap the story, it was a pleasure dealing with this particular person when they called asking why the payment didn't go through. I told them I was filing Ch. 13 and any questions she had could go to my attorney. She said, "OK.. well the only question I might have is what we will do with the payment that was declined". I told her that my attorney advised me to stop payment and she could ask him about it all she wanted. She had nothing else to say and the conversation was over.

[LifeNLemons]

I just called them regarding my AMEX payment. I had given them approval several months ago for 6 electronic checks. But now that we're going to file for Chapter 7, I called to cancel the remaining checks. They said they aren't allowed to do that until I retain a lawyer and provide his name and number. Is that true? Can they refused to cancel the checks?

Now, I have to pay $25/check for stop payment so they don't debit my account for $550 this month and the following months. This sucks!

Can you close your bank account? That's the first thing that popped into my head. I'd just close the account beforehand. Or check to see if I can change the account number due to fraud. Perhaps by telling the bank there is fraud, and changing the account # the ACH debit won't be able to process. You shouldn't have to go into much detail with the bank, just say you lost your checkbook and you don't want anything run through your account with that account # linked to it.

[nazstar]

I called my bank and the lady on the other end was SOOOOO nice. She volunteered to put a stop payment on all 5 remaining checks but it would be $25 a pop. I went into a little detail with her and explained that I previously authorized 6 checks and I called to have them cancelled, but the collection agency wouldn't do it. I didn't explain why I needed them cancelled - just told her I did.

At that point, she got ticked off at the collection agency and said, "what do you mean they told you they wouldn't cancel?!". She told me that I should close the account and just reopen another account with the same bank. She said one of the things she sees (which appears to set her off) is that these collection agencies just go ahead and send the check through without the agreed upon check number, meaning a stop payment on a specific number wouldn't work.

[FreshLikeADaisy]

Oooh, good call on closing the account. I had no idea they would send them through *without the check number*. I knew they could do it since I have done pmts by phone where a check number was not needed, but didn't connect the dots. You have a gem of an account rep at your bank.

[jp2861]

Can you close your bank account? That's the first thing that popped into my head. I'd just close the account beforehand. Or check to see if I can change the account number due to fraud. Perhaps by telling the bank there is fraud, and changing the account # the ACH debit won't be able to process. You shouldn't have to go into much detail with the bank, just say you lost your checkbook and you don't want anything run through your account with that account # linked to it.

Thats the smartest advice I've read all day. Close the account and open a new one at a bank that you have absolutely ties with.

On a side note: Never give bank account info to a collector, not even a check. A check gives them your account number and routing number. If there's an agreement with a collector it should be paid with a money order.