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Collections Law/Actions by collection agency


I was reviewing my bank statement and noticed 2 drafted checks that were debited from my account, the first was for $9.95, check number was #9999 and then a couple days later was another for $118.45, check number #1032.  The printed/stamped info on the back of the check that I was able to view online seemed to be purposely so crunched together and I couldn't make it out.  I started looking up the company name on Google and put 2 and 2 together and it was the balance due for my Progressive insurance that I let go.  I emailed progressive regarding the matter and this was their response:

"The security and privacy of our customers is important to us. A review of your policy indicates we received the payment of $118.45 on 02/15/2013. This payment paid off your outstanding balance. Please note, Progressive does not have any of your banking information on file. Information regarding the outstanding balance was sent to you on 11/05/2012 and 11/25/2012 prior to the balance being sent to Credit Collection Services (CCS). To file a dispute with the collection agency, please contact them at the following:
Credit Collection Services (CCS)
PO Box 9134
Needham Heights, MA 02494
Attn: Client Services"

Mind you the bank account was new and never used with Progressive, the bank investigated and there was no judgement against me presented to them.  I'm doing my best to figure it out and protect my rights...I realize it is MY debt, but that does not mean it is ok to do what has been done....What are my options? I live in FL

Without a Judgment or your express cosent, no Collection Agency as the right to attach your bank account or withdraw funds.

If you are certain this consent was never given you have three options:

1: Go to your bank and file a Fraud Affidavit, claiming these debits were not authorized by you. The bank should reverse the items, return the funds to your account by claiming them from the CA's account and return the items to the CA as "Refused". This will put the collection item back on the CA's books and expect them to come to you for payment.

2: Sue the CA for violation of Fair Debt Collection Practices Act, specifically the section prohibiting this. The exact wording is:

808.  Unfair practices [15 USC 1692f]
A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

3: Do nothing. After all, you say you owed the money, it is now paid and as far as everyone is concerned the issue is settled. Just be very careful about who you give your banking numbers to in teh future.

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Steve Katz


Debt Collection, Credit Reporting, FCRA, FDCPA, TCPA issues


Founder of Debtorboards, co-author of Debtsmanship, former Collector, Credit Counselor


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