Is this legal?

Hi,

I owe a credit card bill with Orchard Bank, HSBC, about $1200. I have had this debt since last year and I haven't paid on it for several months.

A week or two ago, I got a call from IDT Carmel stating that they had taken over this debt and they wanted me to settle. I told them I couldn't settle, but that I would make payment arrangements. I set up a check over the phone for $200, to be taken out of my account on 10/31. After that, they called my husband, who was unaware of this bill, since I pay all of our bills. He told them that he would look into it, but that maybe somehow we could settle it by putting it on another charge card.

When I talked to this company again, they refused to speak to me. They told me that they were now dealing with my husband and that he is possibly taking care of the settlement. I asked them what about the check for $200 and they told me that that wouldn't go through.

They did not speak to either me or my husband again. But yesterday I had a charge come through my checking account for $983.44, the entire settlement amount! This was never authorized. It actually came through from PFR, People First Recoveries. I called them and they said that they are affiliated with this IDT Carmel company and that we authorized them to settle the account. They couldn't help me and told me that I had to speak to the same guy that I spoke to before, but that he was away until Monday.

Needless to say, I stopped payment on that transaction. Is this legal for them to do, since we never authorized it? What are our rights? What can they do about this debt? Who's to say they won't continue to do this since they have my checking account info? I would appreciate any help anyone could give. Thank you.