• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Electronic check submitted w/o authorization

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.



What is the name of your state? Oregon

I was using a local ISP for a small website business. In December of 2001, I paid 3 months worth of service with an electronic check (I gave them my check info and they submitted the check electronically). All was fine and good.

In March, this company decided to pay for 3 months worth of service with the same electronic check system - WITHOUT my authorization. When this check hit my bank, it bounced - and when I see this check from "who knows where", I immedialty freaked out and closed the bank account.

I then got a call a few days later from the ISP saying my check had bounced! That is when I found out who had posted this electronic check without my authorization!

I immediatly terminated my account with them and told them that I was not going to pay for this three months of service and I was definatly not paying for a return check charge when I never authorized this check.

They have sent this to collections. My question - can I sue them for fraud for passing this electronic check without my authorization?

Any help would be greatful. I just sent a letter to the collections agency demanding a written account of what I owe and for what - I'm sure this ISP included the return check charges!

Thanks in advance!


Senior Member
A large part of your argument on this is going to hinge on what agreement was in place for the ISP service and payment.

For example: Was the ISP service based on a contracted period?? What SPECIFIC terms were made at the time of the previously authorized bank draft? Did you specifically tell them that the authorization for bank draft was one-time??

As you can see, there are potentially a lot of issues here and the final answer will require a review of ALL the facts from both sides.


Thank you for your reply. No, there was no specific time period for the service contract - it has been just month-to-month.

When I did the first electronic bank draft in December 2001 - there was never any mention to them that they could do bank drafts on any specific future date - nor did they ask.

When I talked to the ISP, they first tried to claim that I wrote them a bad check. I asked the guy to describe the check to me. When he started to describe the check, I told him my checks are not PINK and then he paused, asked to put me on hold, then came back and told me that it was an electronic check that they submitted!

We were on a month-to-month agreement, and they were never authorized by me to submit any future electronic drafts.

I would like to threaten them with a lawsuit based on check fraud just in hopes of getting them to drop the collections.

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential