Giving account information to a collection agency

by melissa
(eastpointe, MI, US)

Can a collection agency take more money than had been originally agreed upon? How do I stop this from happening?

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Dec 04, 2011
Giving account information to a collection agency

I assume by your question Melissa that you gave the collection agency your bank account number. Bad idea because once you do that you have no control over how much the agency will take as it appears that you have found out the hard way.

When you agreed to let the agency take money from your bank account, did you get the agreement in writing? Having the terms of what you agreed to on paper, can help you resolve your problem. In the future, never agree to anything without putting the details of your agreement in writing.

If the collection agency is going to be debiting your account on a regular basis for a period of time, I recommend closing your current bank account so it cannot continue taking more money than you agreed to. As soon as you close the account, let the agency know what you have done and tell the collector that you will be making all future payments to it using bank certified checks or Western Union (your choice). Also, try to negotiate a lower initial payment/s to make up for the extra amount the agency took out of your account.

Before you pay any money to the debt collector get, the terms of your agreement in writing. Those terms should include among other things the amount you will be paying, when each payment will be due, and how you will be making your payments -- bank certified checks or via Western Union.

If the money the debt collection agency took out of your bank account was a one time thing, your problem may be a little more difficult to resolve now that the agency has your money. The first thing I would do however is write the agency a letter restating the agreement you made with it, informing it that it violated the agreement by taking more from your account than you authorized, and asking it to immediately refund to you the difference between what it took and what it was supposed to take. Indicate the exact amount of the refund you are demanding. If you had a written agreement with the agency, include a copy of that agreement with your letter. Make a copy of your letter for your files and send everything to the agency via certified mail with a return receipt requested.

If the agency ignores your letter or refuses to refund you the money, get legal help. Here are some resources that may be able to help you: free consultation with a consumer law attorney

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