are collections agencies allowed to debit your bank account
Date: Wed, 08/20/2008 - 09:17
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
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.
I would also notify your state attorney general's office about t
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.