Legal Question in Consumer Law in Georgia

I authorized a "good faith" withdrawal from my checking acct to a creditor. Unbeknowing to me, this was also an authorization for a withdrawal for the settlement amount. The automatic withdrawal was returned because of insufficient funds. I have now been informed by them that they can go into my account at anytime without my authorization and withdrawal funds to pay this debt. Is this true? Should I close my account and open a new one?


Asked on 7/08/10, 12:04 pm

2 Answers from Attorneys

Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

What you did was foolish and dangerous, and, depending on what you said and signed, yes they can loot your account. Even if they are not supposed too, many shady creditors will try, so whether they should really is irrelevant.

It is always a bad idea to talk to creditors without seeing a lawyer. Close your account, and open one at a DIFFERENT bank.

See a lawyer and stop talking with the creditor until you do.

NEVER EVER give your checking info to anyone. That means never.

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Answered on 7/08/10, 3:17 pm

I have to agree with Attorney Ashman. There is no such thing as a good faith payment. Never give access to your bank account to anyone. I would withdraw all funds in the account and close the account to prevent future raids which this debt collector can and will do. I suggest that if you are a credit union member, try to get an account there or else get one at an online bank or at a small community bank.

And never ever make a deal to pay any money without first getting a settlement agreement in writing as to the terms.

If you want help negotiating settlement of the debt for a reasonable fee, feel free to contact me.

Rachel Hunter

Attorney at Law

[email protected]

(678)-687-9693

Admitted in GA, PA & NC

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Answered on 7/08/10, 7:18 pm


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