I have already given my permission to withdraw from my checking account

by Sharron
(St. Louis, MO.)

I was contacted by a law office (collection lawyer), about a $10,000 bill from a Bank Credit Card. When I became unemployed I could not pay it. In 2007 I began paying a collection agency at $100/month, they wanted more but that was all I could afford at the time. They quit withdrawing money from my account and this law firm contacted me. I gave the new company permission to take $150 from my checking account. I read in your book not to do this, but it was too late when I read your book. The original bill was last paid in 2002. I live in Missouri. I am wondering what I should do now, or is there anything I can do. Thank you for your assistance.



Comments for I have already given my permission to withdraw from my checking account

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Jun 19, 2009
Checking account info
by: Gerri

Please don't panic. The reason we don't recommend you let a debt collector have direct access to your account is because we have seen situations where that access has been abused and debt collectors have taken out multiple payments, or payments earlier than agreed. I hope you have something in writing describing your agreement. If not, please call them and insist they send you a letter describing your payment arrangement. It should state the balance due, interest that will accumulate (push hard for no further interest charges), the payment amount and payment date, etc. If they will not give it you, send them a certified letter, return receipt, describing your arrangement.

We are not saying a problem will happen to you...but it is something you should be very cautious about. If you gave the collector access to your account you normally use to deposit your income and pay your bills, you may want to consider going to your bank (or credit union) and opening a second account. Change your paycheck deposits and bills over to that account and keep only enough in the other account to make the agreed upon payments with the collector.

This is a very large debt you are dealing with. If no interest is accruing it will still take you five and a half years to pay it off. Can you afford to do that? Have you considered trying to settle it for less than the full balance?

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