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A collection agency took money out of my account without permission.Is this legal?

Tarboro, NC |
Filed under: Bankruptcy

My husband owed money on a credit card. A collection agency took over and he allowed them to take payments out of our account bi-weekly.When he lost his job he called and asked them to stop taking the money out until further notice and they agreed.Then three days ago they took two payments out of my account without permission and I now have nothing left. Can they do this?

Attorney Answers 3


It depends. If you contacted them after the next payment was scheduled, then it was authorized. You need to find what the original agreement was for withholding money. Also, you need to find if they even have a record of your contact or, more specifically, of his calling them. Right now, send them and the bank a letter terminating the withholding authorization OR better yet, change the account now.

I doubt you will get the money back. If you can prove that they had no authorization, you can try to sue them. Keep in mind that you must be able to prove that your husband notified them in time to stop the withdrawal, that they agreed and that they did not stop it.

Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.

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It may be possible. You should review your agreement with them to see what constitutes revoking permission and when it must be made to be timely processed.

Advice on this forum is for informational purposes only and should never be mistaken as a substitute for legal advice. If you are in need of legal advice, you should consult local legal counsel.

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This really depends on what "permission" you gave the collection agency. If you filled out an automatic withdraw of the money from a bank account then your husband should have sent a letter to the collection agency stopping all auto deductions. If he just called theres where the problem lies. You should either switch your bank account and or send the creditor a letter stopping all your future payments as well as contact the bank to stop an automatic withdrawals. Some banks make it difficult to stop an automatic withdrawal because it is unlike stopping payment on a check. Hope this helps....

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of Illinois. Responses are answers to general legal questions and the receiver of such question should consult a local attorney for specific answers to questions.

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