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Is it legal for a vendor to debit business/personal checking accnt w/out authorization or notice?A vendor debited money from our business checking account without informing us. We did not give any authorization. If this IS legal, then how can we go about doing the same to our builders who owe us tens of thousands of dollars. Then we would not be in this mess and our vendors would have been paid in full by now. Attorney answers (1)
Reputation Level 12
Answered over 2 years ago.
Mergers / Acquisitions Attorney in Phoenix, AZ.
Absent prior authorization which needs to be in writing or verbal authorization over the phone (which is usually recorded) a vendor cannot go ahead and debit money from your business checking account. You need to contact your bank and explain the situation to them. They should reverse the charge and give you a credit.
Good Luck
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