Bank Accounts
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Can collectors withdraw funds from my bank account without my approval?
Although unethical collectors (yes, there are ethical collectors out there) threaten to take your money, doing so without your permission requires a court order!
However, it happens more often than people realize. When it does happen, you're dealing with an unethical collector who uses a variety of methods to steal your money. Some of their favorite methods include getting you to authorize post-dated checks or automatic account withdrawals and then withdrawing more than you authorized.
You have certain rights and protections when money is taken out of your account without your permission. Check with your bank and your state's banking authority for the specific rules and rights in your state.
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What about unauthorized Electronic Funds Transfers (EFT)?
Liability for an unauthorized withdrawal is limited to $50 if you notify the financial institution within two business days after learning of the unauthorized withdrawal.
WARNING! You could lose as much as $500 if you do not tell the bank within two business days after learning of the withdrawal.
Additionally, if you do not report an unauthorized transfer that appears on your statement within 60 days after the statement is mailed to you, you risk unlimited loss on transfers made after the 60-day period. That means you could lose all the money in your account plus your maximum overdraft line of credit.
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