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Unauthorized bank draft

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Junior Member
What is the name of your state? Tennessee

I have a problem with a credit counseling agency I have recently dealt with. I first contacted AAA Credit Counseling Corporation on Aug. 22, 2005 accidently. I had actually called the number for Christian Credit Counselors but somehow was connected to AAA. I verbally agreed to credit counseling and set up my initial payment via bank draft for $480.50 on Sept. 2, 2005. On Aug. 31 I called back and cancelled my account with them and was told by the representative that the bank draft for $480.50 originally scheduled for Sept. 2 would not occur. The following week I found out that the draft did occur from an agency AAA was working with called Harbor Financial. This unauthorized draft caused $416.00 of overdraft charges to my bank account over the following week. Harbour refunded the original $480.50 via check issued on Sept 8, 2005 and recieved by mail on Sept. 10, 2005. However Harbour would not reimburse the $416 of bank charges incurred saying the counseling agency (AAA) needed to contact them 7 days in advance to cancel the bank draft. I have been in contact with AAA Credit Counseling all week to collect reimbursement but have not been able to do so. I am located in Tennessee and they are in Ohio. What means can I pursue to receive compensation? Can I file small claims since they are located in another state? If so, do I file with their state or mine?? What charges would be incurred, is it worth filing??

Thanks in advance for all advice!


Senior Member
licious21 said:
What means can I pursue to receive compensation?
You can certainly pursue all means and remedy's you want.

Can I file small claims since they are located in another state?
Yep. However, you have NO case against them. They simply did what YOU authorized them to do. And when you terminated their right to draft your account, you should have contacted YOUR bank to make sure they knew of it. You didn't and they didn't.

If so, do I file with their state or mine??
You can file in yours. They can then file a motion to dismiss due to lack of venue. If the court agrees with them, your case will be dismissed and you will have to refile in their state.

What charges would be incurred
Filing fees plus travel if needed.

is it worth filing??
No one can answer that for you... but in my opinion, no.
They (the credit counselor) are NOT responsible for YOUR failure to monitor your checking account and noticing the overdraft(s).

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