Whatever you do...NEVER pay your debts with post dated checks
or by automatic withdrawal! Don't allow yourself to be bullied into
using these payment methods!
Unethical collectors cash checks and withdraw funds early. Some
have been known to withdraw the same amount of funds twice even though they
were only authorized a one-time withdrawal. These actions will cause you even
more headaches and can cost you a great deal of time and money to resolve all
the problems caused by these actions. Of course, once they have the money,
getting it back is nearly impossible without an expensive legal battle. State
up front that you will be paying by check or money order sent via U.S. mail and
put this in writing.
First, keep in mind that when, collectors, creditors and other
people have a money judgment against you, they can seize your funds (garnish
your bank accounts). Learn more here seized by judgment!
Assuming your overdrawn account is the result of collectors
cashing your post-dated checks too early, or cashing the same check twice,
contact your bank immediately and gather all the facts. If you give collectors
an actual check, (not electronic withdrawal approval) they are supposed to
present this instrument to the bank for payment. Find out when they run the
check and how. If they violated any banking procedures lodge a complaint with
your bank immediately and ask that they restore your funds and any overdraft
charges associated with this situation.
If you need additional help, contact your State Attorney
General's consumer protection division, use this
attorney-general link to locate yours
and then file a formal complaint. While you're on the phone or the web site,
ask if they can offer any assistance in getting your money back. Also ask for a
reference to any state laws that offer protection from harassment. Then, file a
formal complaint with the Federal Trade Commission (FTC) as well using their
on-line
complaint form