Why bank Account # not to be given to a CA?

You may have a CA that will debit your account BEFORE the agreed upon date which can cause overdraft fees, they can and some do continue to debit the account after the debt has been paid. There are CAs out there that do not follow the laws and will cont. to debit your account after all is said and done, charge more than the agreed amount. And there are also some CAs that will attempt to collect a debt from a consumer in a state which the CA isn't licensed to do so.

A lot of people tell collection agencies they will "put it in the mail" just to get them off the phone, but then never actually mail the check. So the collectors want to do phone-payments just to eliminate that factor.

I've had a few persist that they want a phone payment now, and I just tell them that my bank is a small bank and aren't advanced enough to do ACH withdrawals, and the only way they will get paid is if I mail a check. They don't like that, but it usually stops the argument.

It is illegal for a collection agency to debt any amount from your checking account before the date agreed upon or more than the amount agreed upon. Yes, it is in the fdcpa and yes you can take legal action should it happen.


A bank should refund your overdraft fee if you care to explain the situation to them. After that I suggest you start filing a complaint with the AG in their state and even consult a lawyer if you wish.

The problem, however, is that the CA's debiting early happens more than you'd think. Yes, you can explain it to your bank, but when people do a phone transaction a lot of times they have NO written proof of the arrangement being made. So this creates a delay with getting the bank to return the money. And taking legal action can take months.

Everything should be in writing. If you WANT to make a phone payment, get a fax at least stating the terms of the agreement.

Even though you are correct FYI about it being illegal, it does happen frequently. Waiting for the bank to help does not happen immediately as Jessi said. So, I agree that giving out your bank info to a CA is a BAD idea. The CA may not like it. Oh well. Send a money order. And have everything writing. period.