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

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.

Citrus Heights, CA -

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Attorney Answers (2)

Brian Crozier Whitaker

Brian Crozier Whitaker

Bankruptcy Attorney - San Diego, CA

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.

Evan A Nielsen

Evan A Nielsen

Bankruptcy Attorney - Redlands, CA

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

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

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There are different types of debt, but all involve one person (the debtor) owing money to another (the creditor). Terms of repayment are governed by a contract.

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