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A creditor called at home last month. I wasn't present at home, but my boyfriend was. The creditor spoke to him about my account though he is not a co-signer or joint owner. He was told to remind me that on 17/4/2010, $500.00 would be debited from my account. If there was a problem with this I may call back before that date. Mind you, I never, ever, authorized this withdrawal. Basically, the creditor manipulated the conversation as if I had previously authorized this. Anyhow, my boyfriend forgot about this and now $500 has been withdrawn from my account. As a result, my account is now overdrawn by $200.00!! What can I do? Not only did they take money that they were not authorized to take, now I owe my credit union $200.00 !!! :(
unauthorzed withdrawal
Hi Liz,
You should immediately alert your bank that you hadn't authorized the creditor to withdraw money from your account. This is illegal. Your creditor cannot withdraw money from your account without your authorization, or without a judgment. You can also report this to the Fair Debt Collections Practices Act (FDCPA) and Federal Trading Commission (FTC). You can even take legal help from an attorney to deal with this.
Thanks,
Aaron
Unauthorized Withdrawals
In regards to the above situation, what if the creditor was the credit union? My son, who belongs to a credit union, has a Visa with them and his truck loan. He was behind in his payments and at the beginning of the month they cleaned out his account to bring him current. Left $30 in his account. I should also mention his total income is from social security. There was no notice that they would be doing this. I thought that social security income was exempt from seizure. We live in Oregon. Does he have any recourse?
Unauthorized withdrawals
Hi Robyn,
If the credit union is a government body, they may be able to withdraw from your son's bank account without a judgment. Government can also garnish social security which creditors cannot.
Thanks,
Aaron