Legal Question in Credit and Debt Law in Alabama

federal refund sent to third party

I filed taxes with complete tax on-line I e-filed with direct deposit with the prep fee to be deducted from my refund they had my refund sent to a third party(hsbc bank)to which I had an outstanding debt from 2004 that has been charged off. they are telling me they have my refund and will not release it that they are applying it toward the old debt without my permission. the original loan was less than my refund but after they tacked on interest and penalties they say I still owe them money. Can they legally keep my refund without my permission on and old account that has been charged off?


Asked on 2/08/07, 4:45 pm

1 Answer from Attorneys
John Watts Watts Law Group, P.C.

Re: federal refund sent to third party

I'm confused - why did it go to HSBC? Regardless, I would make HSBC put in writing what gives it the right to hold your refund or apply your refund to this old debt. I have not heard of this before - contact me if you would like to discuss as this certainly seems wrong. I've sued HSBC a number of times so this kind of bad conduct is not surprising.

John

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Answered on 2/08/07, 5:05 pm


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