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Post dated checks or automatic withdrawal (EFT) should never be used to pay debts,

Post dated checks or automatic withdrawal (EFT) should never be used to pay debts, because it almost always results in your account be overdrawn for a variety of reasons.

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.

What to do when collectors overdraw your bank account by cashing post-dated checks early or double cashing checks!

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

If a debt collector has improperly taken money from your bank account through post dated checks or auto withdrawal, or if you believe you are a victim of unfair or illegal debt collection tactics, submit your information to a FREE* Fair Debt Lawyer by:

The debt collector may just be liable to you for statutory damages of up to $1,000, plus any actual damages suffered, plus attorney fees!

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