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I had a hypotheticle question for everybody.  If you settle a debt with a JDB for 500 dollars but when you check your bank account they have cleaned out everything.

Can the JDB simply say you gave us the bank account info, would it be hard to try to get your money back.  Is this why most collectors won't put anything in writing so they can clean you

out.

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26 minutes ago, nobk4me said:

If they did not have a judgment against you, what they did is probably illegal.  I would suggest contacting a consumer attorney.  You should be able to sue them for violating consumer laws.

Exactly.  If they took the check and used the routing information to take more than an agreed upon settlement without a judgment, I would absolutely tar and feather them.  In addition I would file a police report for theft.  Could be a felony based on the amount.  If this was an illegal raid on the OP account, and you can find out the specific person at PRA that authorized the withdrawal, press charges. 

Oh yea, and then sue them for violations of consumer laws.  

Now that would be fun to see a PRA employee taken away with some new silver jewelry on their wrists.

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The problem here is that without anything in writing, unless you have a recording of the call, you cannot prove what the settlement was and if you gave them electronic access, there is no real recourse. All they have to say is you owed $xxx and we took $xxx. You are then in the position of trying to convince a judge that they should have taken $yyy rather than $xxx.

Now if you send a check from your account and the use the routing number fraudulently, that is a different issue and you might have recourse. The routing number on the check gives them permission (without a judgement) to only obtain the amount on the check.

Personally, I would never pay a JDB in a settlement amount less than the full amount without a written agreement and even then, I would use a cashiers check or money order, never a personal check. I would never allow a JDB access to my bank account. It is an adversarial relationship and you know they are lying if their tongue and mouth is moving and forming words in a known language.

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3 hours ago, debt runner said:

Is this why most collectors won't put anything in writing so they can clean you out.

None of the major players (Midland, PRA, Cavalry, etc) play those games. If you settle, you will have a clear settlement agreement and get a nice receipt when you pay them. They are not in the business of robbing banks for a couple of bucks.

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4 hours ago, debt runner said:

I had a hypotheticle question for everybody.  If you settle a debt with a JDB for 500 dollars but when you check your bank account they have cleaned out everything.

 

Then you would be in good company. It would be far from the first time this (or similar fraud) has happened. They really aren't the good people that some  would have you believe.

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52 minutes ago, Anon Amos said:

They really aren't the good people that some  would have you believe.

I don't think anyone here made that insinuation.  While it can be said that not all debt collectors are good people, it cannot be stated that all debt collectors are bad people.

Debt collectors routinely have access to consumers' bank accounts through garnishment proceedings.    Any consumer who has ever written a check to settle a court judgment that was awarded to a collection agency has provided that agency with his bank account number. 

The CFPB fined Midland and Portfolio for their debt collection practices.   However, the complaints filed by the Bureau did not include any allegations of criminal activity.   Any collection agency that wants to remain in business and avoid criminal charges is not going to engage in theft.

That being said, one should never agree to pay a penny to a collection agency before confirming the legitimacy of the agency, it's right to collect (if collecting for the original creditor), and getting all necessary details of a settlement in writing.

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