Legal Question in Credit and Debt Law in Georgia

I am late on my mortgage payments and have been trying to get my mortgage company to work out some sort of modification. They refuse, and tell me that it is not their problem that my employer has cut my hours by imposing several furlough days per month. I usually call them when I can make the payment and authorize a payment from my checking account. I AM NOT on any autopay program with them. The first week of April; they pulled a payment from my account without my knowledge. When I called them, the person told me that since they had all my bank info,they could get the payment anytime. Is this legal? Ifnot; what recourse do I have?


Asked on 4/10/10, 4:20 pm

1 Answer from Attorneys
Paula McGill Attorney at Law

If all creditors needed were bank information number for their debtors, they wouldn't need your authorization for autopay. The only exception would be if you have a bank account at the bank that holds that mortgage. Under those circumstances, you may have signed the authorization when you took out the mortgage or opened the bank account.

If this unauthorized withdrawal caused overdrafts, among other compensation, you may demand repayment for any overdraft and return check fees. Also, you can report the offending institution to federal and state regulators.

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Answered on 4/15/10, 4:49 pm


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