Unauthorized Debit Amount

[dalia1207]

The name of my state is Michigan. I had recently authorized CPS whom we have our car loan through, to debit our debit card for $50 so that we would be able to skip our October payment due to some financial difficulties at this time. They faxed us a paper to sign stating that we gave them permission to debit our card $50 but instead they debited $400.70 which is our full payment. I immediatly went and told the bank that the transaction was only authorized for $50, I was able to tell them right away because Marilyn from CPS, callled and told me what they had done. The Bank had me fill out a unauthorized from that day and two days later asked me to come in only to tell me that they are not going to do anything about it and that CPS has to refund me that money but CPS told me that they are not capable of being able to refund money back into a bank account. So CPS and my bank talked and ended up arguing as to what has to be done and CPS hung up on them. In the meantime I am in the negative and aquiring almost $500 in NSF fees. What do I do, who is responsible, should the bank deposit the difference due to the federal banking laws or should just accept the fact that the full payment was taken and move on? Please help.

[moburkes]

Originally Posted by dalia1207

The name of my state is Michigan. I had recently authorized CPS whom we have our car loan through, to debit our debit card for $50 so that we would be able to skip our October payment due to some financial difficulties at this time. They faxed us a paper to sign stating that we gave them permission to debit our card $50 but instead they debited $400.70 which is our full payment. I immediatly went and told the bank that the transaction was only authorized for $50, I was able to tell them right away because Marilyn from CPS, callled and told me what they had done. The Bank had me fill out a unauthorized from that day and two days later asked me to come in only to tell me that they are not going to do anything about it and that CPS has to refund me that money but CPS told me that they are not capable of being able to refund money back into a bank account. So CPS and my bank talked and ended up arguing as to what has to be done and CPS hung up on them. In the meantime I am in the negative and aquiring almost $500 in NSF fees. What do I do, who is responsible, should the bank deposit the difference due to the federal banking laws or should just accept the fact that the full payment was taken and move on? Please help.

Post the wording of the form that you faxed back.

[JETX]

Originally Posted by dalia1207

What do I do, who is responsible, should the bank deposit the difference due to the federal banking laws or should just accept the fact that the full payment was taken and move on?

Depends. Did the bank KNOW that you were only authorizing then for $50?? If so, then go back to the bank and POLITELY demand that they refund the error that THEY made in paying too much from your account.

However, if the fault lies in CPS drafting in excess of the authorized amount, then send them a WRITTEN notice (certified RRR) demanding that the return the excess amount. Include that if they do not do this within FIVE business days from receipt, you would pursue a 'breach of contract' suit against them.

However, if they don't refund (as they likely will not voluntarily), you will have to decide if you are serious enough to proceed with litigation.