Can the CA draft your account without a preauthorized check if they happen to have your account number? If so, is there anything I can do to prevent this with my bank outside of switching bank account or changing the account #? Something like asking my bank to not allow a certain entity to touch my bank account.
Theoretically they could (anyone could); in addition to the account number they would need the bank routing number, but those are easy to get (they are on your checks, and you can get it simply by calling the bank). But it's illegal, unless it's a merchant trying to redeem a bounced check. An electronic withdrawal is really an electronic check, and if the person making the withdrawal can't prove you authorized the withdrawal, then they have basically committed electronic forgery. Perhaps there is some way around this with a judgment, but I haven't seen it happen. A court order, though, is different. They can take it all that way. As for your second question, I know at my company once a client authorizes automatic withdrawals, we have no way of stopping them. I've advised more than one client to close their account in order to block periodic withdrawals that they were trying to stop. But I've always thought that was a limitation of our system, and maybe other companies are able to selectively halt electronic transfers. By the way, it's also illegal for someone to continue to make electronic withdrawals from your account once you have told them to stop, but I would rather force the issue by closing the account if I had even the slightest worry about the withdrawals continuing. The upshot of this is, if you are making payments to a CA, always use cashiers checks or money orders, because there's no reason they need to know about your banking info. With just your checking account number, they can call a bank and get a good idea of how much money is in your account, and that's not something you want them to know. And I wouldn't authorize direct withdrawal to pay a bill for anyone -- I've seen too many problems with it.
So the bank cannot do anything even if you notify them of a possible unauthorized entity trying to get money from your account?
I know my company can't, but as I said, it's possibly a limitation of our system. I would contact your bank and ask them, and make sure you are talking to someone who knows their stuff. I know from personal experience that on an issue like this, you are likely to get different answers from different people, so make sure you are getting an answer from someone who knows. One suggestion for you if you are really worried is to open two accounts at the same institution. That way you will be able to shield your money by moving it from an exposed account to your "safe" account if it becomes necessary. *Edit: I misread your post. We can shut down all electronic access to an account, but it's a real PITA, both for us and the client. I don't work for a bank per se, but for a company that performs many banking functions: it's possible that a regular bank has more capabilities in this area. You are best off talking to your bank and finding out what they are able to do.
There isn't anything "theoretical" about it! I wrote a post dated check for my daughter's class ring. Instead of holding the check as promised. The guy deposited it right away. Of course it bounced. He turned it over to a CA. I called them and disputed it. I said that I would pay the original amount but no fees, as it was the OCs fault. one month later, they created an electronic version of the check. One for the original amount and one for the fees. Both cleared. I was ticked off, but didn't know what I could do about it. Now I found this place and know I could sue the CA for continued collection activity, I just have other fish to fry right now! Besides, I disputed via phone, so I have no proof. Lessons learned.
You could sue the bank and they guy that deposited it for depositing/cashing a check that was postdated. The whole thing as not your fault. I would start sending out settlement letters. If you are not familiar with my settlement letters, it means: Pay me $1000 and delete, and I won't sue you for what you did. Has worked numerous times. Of course I have had to sue, but I've settled out of court once. I didn't settle the others(they've wanted to) because what they offered me in cash was a further insult. They admitted that they were wrong, so it's a slap in my face to not want to pay for it.
Bunter is it legal for your company or any other company for that matter to collect funds from my bank on copied checks rather than on original checks? I have had companies do so with copies of canceled and un cashed checks both!
There are very strict laws prohibiting unauthorized debits from your account. I would not hesitate to sue those involved and file criminal charges in the state's in which it occurred. I would also contact the AG's office from both state's and the banking/licensing commissions as well to file a formal complaint. In a matter such as this I wouldn't try and handle it myself. I would be in my attorney's office pronto!! You should also contact your bank immediately, you might not be held liable for fraudulent transactions. I believe that is in the laws somewhere. In fact they will start a fraud investigation for you. This happened to my brother for almost $1200.00 and he was re-credited it back into his account within 48hrs. of contacting the branch manager and filling out some fraud affadavit. He was only out $50.00 which is the allowable amount by law. He didn't pursue it further and in fact never heard back from the bank or source. Tac
I'm certain you can sue for illegal withdrawal here. The bounced check is one thing, but the CA fees are totally absurd -- siphoning those out of your account without a court order amounts to theft. I'd sue them tomorrow if the SOL hasn't run out on it. You said you had bigger fish to fry, but I think this is easy money. They need some kind of signature, either electronic or real, in order to take your money. They'll have it for the bounced check, but not for the CA fees.
