Legal Question in Credit and Debt Law in New Jersey

Re: Violation of Unfair Debt Collection Act

Unless you specifically authorized, in writing, the debiting of your bank account, this agency most definitely, on the facts given, has acted improperly. Their conduct may constitute civil conversion (interference with another's property rights) or fraud, but even worse, embezzlement, criminal conversion or flatout theft.

If you have copies of everything you signed, read through them again to make sure your authorization for this isn't buried in the fine print. If it is, it probably means they didn't act criminally but most states have Consumer Protection statutes that prohibit "dirty tricks" like hyping all the benefits in huge type size and colorful presentation while spelling out your obligations in words so small you'd need a magnifying glass to read them.

You should never take or forego from any action based upon a response your receive to a question you posted on the internet. The reason is that if you met with an attorney in person she or he would have quite a few questions to pose to you to really nail down the facts. However, although it is considered unethical for an attorney to threaten criminal prosecution to gain an advantage in a civil dispute, there is nothing that prevents you from taking this to your County Prosecutor's Office and telling them how you were cheated. Depending upon where the agency is located or how outrageous the Prosecutor considers what they did, that Office might just be able to persuade the agency to refund your money. Otherwise, although it seems the $395.00 involved might not justify the expense of a lawyer, I'd be concerned about what else might be in the fine print and with your bank account No., whether you'll get socked again a year from now without realizing this was renewable annually unless cancelled by you.

Be smart. Spend the money for a 1/2 hour consulation and learn something about your rights. Consider it tuition paid to the College of Life.