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are collections agencies allowed to debit your bank account

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i had some problems with payday loans and closed my account and got a new bank account. somehow the collection agencies for these loan companies got a hold of my bank account and have been trying to debit different amounts. i called them and tehy stated they are allowed to debit my account. tehy stated when i signed my contract with pay day loan company i authorized this, i was even told by one for a loan i had in 2001 that by federal law they can do this, i was never contacted by these collections agencies so how it is that they can do this. what are my rights? where can i find information on collection procedures. i have even been threatned by some of teh places telling me i will go to jail. what can i do ? any help would be appreciated.

They lied to you about everything. You won't go to jail and its not legal for them to access a new account no matter what they say is in their agreement. I would dispute the transactions they made and then you will need to close that account and open a new account at a new bank probably. Make sure they old account is hard blocked against all transactions. You might also consider filing a police report for fraud.

Sub: #1 posted on Thu, 08/21/2008 - 13:47

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I would also notify your state attorney general's office about this and file a FTC complaint as well. While local police departments rarely want to get involved in this kind of thing, the AG and the FTC have the responsibility to do so.

Sub: #2 posted on Thu, 08/21/2008 - 14:09

skydivr7673 skydivr7673
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