Can CC companies withdraw from my account w/o authorization?

[fedupw/ccdebt]

I am finally meeting with a lawyer next week to get things going, but am concerned about something. I have stopped paying my cc's, with the longest one being Chase...going on two months now. Is there any way that they can withdraw money from my checking account without my authorizing them to do so? I know that typically, I had mailed payments in but once or twice did the "auto thing" over the phone because I didn't want to get a late fee applied.

So, my question is can they take money out of my account without me telling them to do so? Any thoughts would be appreciated.

[DeadManCrawling]

Generally speaking, they have to sue you in court to get any access to accounts, garnishments, etc.

Just because you paid them electronically in the past, or might even have had an automatic withdrawal set up, they cannot just decide to take money from your account.

If you did have an automatic payment plan, tell your bank to no longer allow the withdrawals.

We havea few automatic withdrawals for insurance payments, but that's all.

And though we have paid credit card companies electronically in the past, none have attempted to access our account. It would be illegal for them to do so, anyway, without a court order. Even in that case, the money would probably be sifted through attorneys and a judge before they would get it, if they took you to court and won.

best wishes,

-dmc

[fedupw/ccdebt]

Thanks for the reply...that is what I assumed.

This is the best site, hands down, and I have gained so much insight on this issue. More importantly, I don't feel like I am alone thru this whole thing or feel like it has only happened to me. The information I have learned has really enlightened me.

[AreSoonParted]

Withdraw from account w/o authorization

If you owe Chase a lot of money, you might want to consider opening a different account or keeping balance low. Usually when you open a checking account you sign forms with a bunch of legal verbage that no one reads. Some of it talks about debts incurred against the bank and often gives them the right to use your funds w/o your direct authorization., actually your signature is the authorization.

If you have any of the paperwork left from when you opened your account, I'd read it very carefully. Bring this up with your Atty.. I just filed Chapter 7 and owed Chase 30K, My checking accnt was with Chase so I stopped auto deposit, and began using my credit union accnt to pay bills. My actions may be paranoid but i figure it's easier to prevent this situation than to try and get the $$ back.

[DeadManCrawling]

Aresoonparted is correct.

My answer was based onthe assumption that you do not bank at the same place that issued the cards.

If that is the case, as in a credit union you bank with but also owe money to, they CAN take your money. And will.

As long as you don't bank at the same place that issued the cards, you should be okay.

In fact,make sure you don't owe the bank any money, to be safe. This includes cc's, auto loans, anything.

If you don't owe the bank anything, and just have an account there, should be ok.

[fedupw/ccdebt]

Again, thanks for the replies... Our bank is just that, "our bank". Sky Bank actually (used to Union Federal). Don't have any bank services with any of our CC companies. My real concern is that our mortgage is with Bank of America and we also have 2 CC's with them...have never been late on the mortgage and am current, but am wondering how this whole thing will proceed with that issue.

[treehugger1]

Stay current with the mortgage payments. If the BOFA branch is local, it won't hurt to make your payments in person and require a receipt for the payment. I have heard strange things regarding BOFA on forums, but I would guess that the CC department and mortgage department are separate internal entities. Several months ago I told BOFA/MBNA to tale me to court if they ever dreamed they might get money from me. I have two CC's with a total balance of $9K. Eventually they caved in and agreed on a five year payoff at 1.75% interest (BOFA) and 2% interest (MBNA). I had to go so far as give them an estimate of what they might expect to receive if I filed a chapter 13. I even had their "service" representative in stitches when I told her this was her chance to "stick it to the man." On the other hand, I have $12K debt with CrapitalOne. They are not interested in a five-year payment proposal. With my current deceasing income, I estimate they would get approximatley $4K over five years of a BK 13. I'm thinking they will come around when they realize they are not in not in charge of my finances.

The other thing to consider is to open a new account at another bank that is separate from BOFA, prior to the possiblity they would try to access your account for the CC's. But, this is extremely unlikely. Still, my mantra is protect yourself. Cheers.