Legal Question in Credit and Debt Law in Ohio

My daughter had over $800 removed from her checking account by a collection agency (Forster and Garbus) because they used the wrong account number. The credit union still sent them the money without notifying my daughter which caused several bad checks and service charges not to mention the heartache and frustration. Forster and Garbus finally admitted their mistake but it has been more than two days and they still have not returned the money. We had to loan her some cash so she could buy food and gas and she also has an 18 month old child. Forster and Garbus indicated they would return the $800 at some point but they were not responsible for the service charges. My question is are collection agencies exempt from the law and do they owe my daughter more than the $800 even if it is in the form of an apology. They have been very difficult to work with and slow to respond in what I feel could have been a desperate situation if there was no family to support her. My other question is can a credit union or bank release this kind of money without contacting the customer based on a letter or telephone call that may have the wrong account number? It makes me want to withdraw my money and bury it in the backyard like they did in the 1930's.

Disillusioned Dad from Ohio


Asked on 10/20/09, 9:52 pm

1 Answer from Attorneys
David Michael Benson Benson Law Firm

You should speak with an attorney about whether the collector violated the Fair Debt Collection Practices Act, as well as Ohio common law. The credit union, however, may have had no choice but to withdraw the funds pursuant to the court order it had received.

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Answered on 10/26/09, 12:53 pm


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