Is It Legal For a Debt Collector to Withdraw From Your Bank Account?
Can a debt collector withdraw funds from your bank account without your approval? This answer is a big fat NO!
Debt collectors can ONLY withdraw funds from your bank account with YOUR permission. That permission often comes in the form of authorization for the creditor to complete automatic withdrawals from your bank account. You have every right to notify the creditor that you no longer authorize withdrawals from your bank account if you’re in a pinch. If the creditor keeps withdrawing funds from your bank account after you tell them that they no longer have your permission to make withdrawals, you may have the right to sue that debt collector for violation of your consumer rights. Unauthorized funds withdrawals by a debt collector can be a blatant violation of your consumer rights under the Fair Debt Collection Practices Act (“FDCPA”) or its statutory friend, the Electronic Funds Transfer Act (“EFTA”). A violation of your consumer rights turns the tables against the debt collector—YOU can sue THEM for their violation!
An FDCPA violation can require the debt collector to pay you a maximum of $1,000.00 in statutory damages. In some situations, debt collectors in violation of the FDCPA may also waive the underlying debt, or even delete negative credit reporting. An EFTA violation also entitles you to in-pocket statutory damages, plus recovery of any withdrawn amounts that weren’t previously refunded to you.
Our office can represent you in an FDCPA/EFTA claim against a debt collector on a contingency basis. This means that we only get paid if we win and you get paid! With little to no risk to you, let us help you turn the tables against a debt collector for violation of your consumer rights.
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