Legal Question in Credit and Debt Law in Texas
Questionable Collection Procedure
I have a delinquent account in which I have made arrangements to pay off in monthly installments. I have been making payment accordingly, and the last payment I made was a Check-By-Phone. The company drafted my account three times for the same Check-By-Phone payment in the same month on separate days. This overdrew my bank account. My bank says that the transactions were each separate, and it does not matter that the check numbers were the same because they each had a different transaction code. My bank says that I am to contact the company that drafted my account to resolve the situation. The company says they drafted the account because my account was delinquent, and they have no intentions of doing anything about it because I owed them the money. I never gave them permission to draft my account more than once. Is this legal? Is there any thing I can do against this company or maybe even the Bank?
2 Answers from Attorneys
Re: Questionable Collection Procedure
Your problem demonstrates why one should never authorize another to "draft" an account. You have no way of rescinding the grant of authority.
The bank is correct. You authorized the withdrawals.
Your complaint is with the company. If you were not delinquent, write to them and explain that you are going to withhold the next 2 payments as you did not owe them in advance and they were deducted from your account without authorization.
Cancel the authorization, in writing, by certified mail, return receipt.
Re: Questionable Collection Procedure
The company's collection procedures may be in violation of the Federal Fair Debt Collection Practice Act and the Texas Collection Practices Act. If you wish to discuss this further, please give me a call.
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