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Laws regarding e-checks?


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I hope these aren't stupid questions. I'm just very confused and would like to find out if I have any legal rights.

Questions:

1: If you authorize (by phone) a CA to debit your bank account in the form of an e-check (6 month payment schedule) but then send a letter revoking the authorization, is the CA allowed by law to keep taking the money? If they do, is there anything you can do about it legally?

2: If you revoke your authorization and dispute the CA's claim (DV letter) AFTER setting up the schedule, is it considered collection activity if they continue to debit your bank account?

Thanks!

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NOt sure about the continued collection, but if they debited your account after you recinded the authorization, call your bank and tell them those are unauthorized debits and they will reverse them.

I appreciate your reply but the problem is I have already spoken with my bank. I was told authorized debit/e-checks can't be cancel or reversed. They basically said the bank doesn't get involved once you've given out your account info.

I had originally authorized 6 payments so I was advised to either take it up with the CA, close the account or just disallow debits. Closing the account and disallowing debits is not really an option for me right now so I'm left dealing with the CA. That's why I wanted to find out what my legal rights are.

Any info would be appreciated.

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Sounds like you bank banch manager never heard of the EFTA (Electronic Funds Transfer Act). If the debit was unauthorized, they must reverse the charges. Show your proof that the authorization was revoked and that the debit was made by fraud*.

Check out the text of the EFTA and make sure you did everything by the book. If so, tell the bank they need to fix the problem.

*using the word "Fraud" with the bank usually gets their attention.

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Thank you so much for your reply! THAT'S the info I was looking for :twothumbsup:

Sounds like you bank banch manager never heard of the EFTA (Electronic Funds Transfer Act).

That makes two of us :lol: That's the problem with us newbies isn't it? Most times we don't know our rights and have no idea how to find out about them xheadscratchx

Just out of curiosity.....if you revoke your authorization and dispute the CA's claim (DV letter) AFTER setting up the schedule, is it considered collection activity if the CA debits your bank account after they receive the DV?

Thanks again!

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That isn't true, becuse the only information I need to draw an echeck from your account is printed on the bottom of every check. All I need is a routing number and an account number, along with your name and I can do it, too.

That bank manager doen't know what he is talking about. Call someone higher up the chain. Worse comes to worse, though- If you would rather not fight, just close the account and get a new bank.

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That isn't true, becuse the only information I need to draw an echeck from your account is printed on the bottom of every check. All I need is a routing number and an account number, along with your name and I can do it, too.

That's a very good point! It's also a scary thought! It makes me not want to write checks anymore :)

That bank manager doen't know what he is talking about. Call someone higher up the chain. Worse comes to worse, though- If you would rather not fight, just close the account and get a new bank

Well, I don't know if it's going to be a problem yet. The next payment was scheduled for the 4th but it hasn't been taken out. I'm hoping the CA "got the message" but if not, I WILL fight it anyway I can. I'm tired of being taken advantage of just for trying to do the right thing. I know I have a lot to learn but thanks to this site, I'll be able to :)

Just out of curiosity.....if you revoke your authorization and dispute the CA's claim (DV letter) AFTER setting up the schedule, is it considered collection activity if the CA debits your bank account after they receive the DV?

Does anyone know the answer to this question?

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Might be hard to argue since you did originally agree to it. It will depend on the judge and whether you can find any case law. BTW if you are going to revisit the debit issue with the bank, take a copy of the EFTA with you with the appropriate sections highlighted, especially the parts about liability for non-compliance! :D

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How do I look up case law?

Also, where can I find a complete copy of the EFTA (Electronic Funds Transfer Act)? I've done searches but can only seem to find bits and pieces.

Sorry for the dumb questions....just a newbie trying to learn :wink:

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Thank you for your reply :)

I received a phone call from the CA today. Luckily my answering machine recorded the call. The person I spoke with had a VERY thick accent and was difficult to understand. To make a long story short, she wanted to find out if I had authorized the 6 month payment schedule? When I realized what she wanted, I just asked if she had received my letter? She said not in her office but they may have at the main office. I then told her I HAD sent a letter and that she needed to read it. She just said ok and that was that. I never answered her question.

Is this a violation?

The CA received my DV letter on 2/18. I had also included that I was revoking my authorization for any and all electronic checks/debits for this account and requested that all reference to my bank account be deleted from their files.

Thanks!

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Yes it is a violation. You, as the consumer, are not responsible for their internal communication problems. If they got the letter, then they should have flagged the file to warn collectors not to call. They didn't now they are in violation. And no, they can't claim bonafide error on this. It's not an error unless they can prove they had procedures in place to prevent it and that those procedures were inadequate to stop the error.

By the way...did you know you can sue the collector directly, not just the collection company they work for? Yup...sure can. :-)

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