Agency withdraws an extra payment

[davidpylejr]

Settled with a collection agency in Jan. The Amount was for 1809. they faxed me a letter, with withdrawls of 150 by 1/31, 414 by 2/28, 414 by 3/31, and 414 by 4/30. These were the only withdrawl dates on this agreement. I didnt really pay attention to the fact that it didnt add up to the total settled amount. I got suprised when they took out 414 more today (which was not listed on this faxed form). Were they authorized to take this money today even though it was not listed??? On the copy of the check it said it was autorized on 4/29 the same day that the 4/30 check was autorized. A little help would be appreciated

[justbroke]

Not unless there is something in that "agreement" which states otherwise. I'm not "preaching" to you, but this is precisely why one should never ever give a collection agency their routing and account numbers and "authorize" withdrawals.

Are you planning to file bankruptcy soon? Or is this just a general "what to do next"? If you're asking what to do next and you aren't filing bankruptcy, then you would need to sue them to get them to adhere to the terms of the settlement.

[davidpylejr]

This was actually a business debt I am personally in a chapter 13 right now I guess the dilemma is that the total settlement did t match the scheduled payments I am going to go to my bank I. The morning and take them the paperwork and show them that the extra payment while I makes the total correct was not authorized in the agreement

[catleg]

File a "Reg E" complaint with your bank and they should return your money.

[justbroke]

catleg, is "Reg E" for ACH things? I know that I've used "Reg E" for ATM issues at a foreign bank. However, you're right. There is some regulation that would cover this. Hopefully his "home" bank will cooperate. Please don't let your home bank tell you that you have to go to the source. Your home bank MUST take "Reg E" complaints.

[IamOld]

You can start by telling your bank that this is an UNAUTHORIZED ACH withdrawal, fill out whatever form, and the bank will refund your money...some sooner than later...BUT TALK TOY OUR BANK NOW!!!!!

[catleg]

I think Reg E applies to any electronic transaction.

There are also specific rules for the ACH system that must be followed for recurring transactions; chances are the collection agency violated those rules as well. (There is supposed to be a written authorization on file and/or a written or electronic notification sent prior to each withdrawl).

[Pandora]

read the fine print of whatever it was you signed.... many times there are "catch 22" clauses in there...

[lovemybugs10]

Your bank should cover it. In the future make sure you don't let them do auto withdraws. They will accept mailed in payments if you push them. But they will push hard for auto payments first. "just say no"

Edit- you shouldn't have to show the bank your agreement- just tell them it wasn't authorized. They should refund it right away.