Expert: Chris Ebert - 8/20/2010

Question
Hello, a few days ago my checking account was debited almost $1200
(original amount plus a lot of fees) for a payday loan that i took out over 2
years ago in nevada.  i've since moved to texas.  i had defaulted on the loan
and completely forgotten about it until now.  my bank returned the check and
i actually talked to someone at the collector who was willing to work with me
on payment arrangements.  she is supposed to call me back tomorrow after
the check gets returned to them.  however, i just looked at my bank account
online and it looks like another debit came from the same company for just
the original amount (just over $700).  first, can i have the bank send back the
second check even though there is money in the account to cover it?  second,
can they continue to try and withdraw the money even after i spoke with
someone?  seems a little ridiculous to me.  thanks for your time.

Answer
Joseph,

Unfortunately, it too easy for a company to withdraw money once they have all the bank information. Most of my clients end up getting another bank account number (usually at another bank.)

From what you described it sounds like you gave them this information a long time ago (2 years). I would say that most checks over 90 days are not honored by the bank. If the bank honors it, then why? If they are drafting it out of your account, then do they have current permission to do so. If not then you can tell the bank it was a fraudulent ACH withdrawal and they did not have permission to remove it our of your account. It can take 2-3 months to get your money back.

Best of luck.

Chris Ebert
http://www.henleycreditlaw.com