Credit company withdrew $302 when it was not authorized to do so. What actions can I take?

Asked over 1 year ago - Citrus Heights, CA

My past due amount was $302, but I authorized only $107 on the automatic payment. After contacting my credit company they informed me that when I set up the automatic payment online the month before that there was an agreement that any past due would be charged. I do not recall any warnings to that effect.

Additional information

I later on attempted to set up another automatic payment and did not see any warnings of past due being taken out. I called the credit company and informed them of this and they agreed to refund me $195. Is there any action I can take for them taking my money with no permission.

Attorney answers (2)

  1. Brian Crozier Whitaker

    Contributor Level 17


    Lawyer agrees

    Answered . Your question is directed to bankruptcy attorneys, but it seems you have not filed yet.
    If you did, their action would be a violation of the automatic stay; and you should provide them with the Notice of Filing and demand that they return the funds.
    If you will be filing within 90 days of their action, then it is a preference payment which you might be able to convince them to return.

  2. Evan A Nielsen

    Contributor Level 18

    Answered . If they're returning the $195 then it sounds like they're putting things back to where they would have been if the original payment you requetsed was made. If that's the case then it will be difficult for you to pursue them legally because they've fixed the "error." You may want to review the detailed matter with an attorney but the size of the claim ($195) may not justify this either.

    Hope that helps.

    Evan A. Nielsen
    1255 W. Colton Ave., #506 | Redlands, CA 92374
    Main: 909.363.4658 | Fax: 480.304.3211

    Mention this Post for a free consultation.

    Evan A. Nielsen is licensed to practice law in California. The information provided here is for educational... more
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