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myalias · Posted: Wed May 14, 2008 6:50 am Subject: Refund from CashnetUSA

I received a refund in my new checking account from Cashnet USA. They stated I was due a refund of interest, however, they were going to deduct it from the amount I still owe them. Today, I checked my account with the bank and there were 3 small deposits totaling $50. I did not give them my new information. I called the bank, they said the ACH department probably received the deposits and didnt know where to put them as the original account was closed. They are checking into it. I checked the website for Cashnet USA. They do not have my new information in my profile. I am worried now that they will start taking money from my new account. The bank said that is not legal, but I may have to put a Hard Hold on my new account, as they could try and it would tie up my money. Any suggestions? I had 3 accounts with the bank. I closed the main account, and kept the other two open so I could get my paycheck. My employer requires direct deposit and I also have some legal debts that have to be a direct debit.

myalias · Posted: Wed May 14, 2008 6:54 am Subject:

I just received a phone call from my bank. They state that the refunds came through and rejected off my old account. They chose to put the money in my new one. They do not release any new account information to the company. Just in case any body else runs into this! They can not debit the new account as they do not have an authorization to do so, and they can not get the information from the bank as that would be a breach of security.

Posted: Wed May 14, 2008 7:36 am Subject:

Please be careful. when you take out these loans very often in the contract there is a clause that gives them permission to debit any account you have now or will have in the future.

myalias · Posted: Wed May 14, 2008 7:52 am Subject:

My bank informed me that it is illegal for any company to debit an account that has not been disignated on the loan. In other words, if a PDL debits a new checking account with out a written authorization it is condsidered fraud and can be disputed. They are not legally allowed to debit an account with out an authorization strictly for that account. I have heard this elsewhere also.

Posted: Wed May 14, 2008 7:57 am Subject:

I believe that is the case as well...when I was talking to Christy at intercept...I told her I was afraid they could come after me if I had a new account..and she said only if I give them the account information. If they did do a debit...it would be illegal.

Posted: Wed May 14, 2008 7:59 am Subject:

If you gave them permission in the contract they can do it, and trust me they will.

myalias · Posted: Wed May 14, 2008 8:43 am Subject:

My contracts all gave specifics to one designated checking account. None of them state that they can debit any account I have.

Posted: Wed May 14, 2008 9:11 am Subject:

All of mine had that clause in them.

Guest · Posted: Wed May 14, 2008 9:40 am Subject:

Kash,

I know the clause you speak of. It is not legal. According to the EFTA a contract must specify a RTN and Account Number. They write that in there, but it is illegal. Regarding new acounts being found, often times your bank will return what's called a "Correction" file when you still have an account but a closed account has been debited. It's not them finding your account, it's your own bank re-routing it as a "convenience"

Posted: Wed May 14, 2008 1:17 pm Subject:

that scares me a lot.. i really don't think its legal neither but i'm sure they do it and get away with it.. (what won't they do??)

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They found my new account number!!!!

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