check by phone

[pheonissa]

My husband and I live in Tennessee. We had been doing a check by phone with one of our creditors for our monthly payments. One month (March) the creditor used our account information (given from prior check by phone) to withdraw a payment without our permission, they even used a bogus check number. We did not know they had done this until a check bounced (my law school seat deposit). We tracked it down to this company (who has a check number 002 anymore???). They admitted to taking the money but aren't doing anything to rectify the situation. Does anyone know what our rights are, legally?

 

[baylorbear]

Of course it is illegal. Learn from your mistake, change your acct. info at your bank and NEVER give your acct. number to anyone. That's asking for trouble.

 

[Ladynred]

Did the CC company say WHY they took the money ? Had you made your March payment on time, or did they do this before the payment was due ?? Did they think you weren't going to pay ?

Unfortunately, this is the huge risk you run when you give ANY creditor your banking information. They WILL use it whenever they want to and have a bag full of arguments to justify their actions if you dispute it.

If I were you, I'd do one of two things - either speak with the bank and have any transactions with this company that are NOT your "official" checks blocked (pay them with a cashiers check from now on, or, close that account and open a new one in another bank.

Probably not a whole lot you can do about getting the money back, but I WOULD talk to the bank people and see what they have to say about the unauthorized withdrawl. Banks aren't too smart.. they do everything electronically, and no human beings monitor things like this any more. You have to intercede to get anyone to look, make a complaint, and if they won't help you, close the account and bank elsewhere.