Legal Question in Credit and Debt Law in North Carolina
collection agencies
A collection agency representing the U.S. Dept. of Education, recently contacted me regarding my outstanding student loan. They told me that my loan is in default and that garnishment is imminent. They said that if I provided a bank account and routing numbers, and I faxed them a signature, they would halt garnishment. I immediately gave them the bank information over the phone, but, since I do not have a fax, did not provide my signature. My intention was to send them my signature, the following week, when I expected to deposit enough money into that account to cover the payment. I do not contest this debt, and I do intend to make prompt, regular payments. My problem, however, is that the money was withdrawn from my account after I provided the bank information to them, but before I sent my signature. This, of course caused the account to go in the red, costing over $89 in overdraft fees. My question is: Did what they do legal?
2 Answers from Attorneys
Re: collection agencies
How do you know they were even legitimate? Never give that sort of information to anyone.
Re: collection agencies
Never give out your bank information to anyone over the phone like that. When dealing with collection agencies, do everything in writing. If they call, tell them to write you.
If they truly represent the Dept. of Ed., they will send you something in writing. You have the right to demand verification of the debt. Do this in writing.
If they are legit, and you do settle on a payment plan, do not do automatic withdrawals, as this will cause the exact problems you are having. Agree only to mail them payments.
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