Can a collections agency take money from my account without my permission?

Maxi

"The debt was settled for a lower cost " which you have agreed in writing..... and you can do a bank transfer where no bank details of your are shown

Casey Y

Unless they have a judgment against you with a court order to do this...just having your information will not permit them to take your money out... The collection agency has a ton of your information already...I wouldn't worry

Tavy

You can do a bank transfer. They won't have your banking details. Phone your bank to make sure.

rick29148

only with a judge-signed court order .......................

STEVEN F

If you initiate an ETF through your bank, they WILL NOT have your account details. That said, DO NOT send ANYTHING until you have a physical notice IN YOUR HAND stating that $X received by Y date is FULL SETTLEMENT of the debt. If you don't keep that FOREVER, they will attempt to collect more later. You need PROOF they agreed to the settlement.

Beverly S

You should first have a letter from them showing the amount they settle for will constitue payment in full. Keep that letter FOREVER. Legally they can never make unauthorized deductions.

DEBS

NEVER (not just with debt collectors) give anyone or any company the right to *take* money from your account. You should always initiate the transfer. As long as you do that, they will not have the ability to access your account or take money at will. Gyms like to try and set up payment like this. You can set up a recurring payment to them, but as stated before they should never have access to take money even as a one-time transaction.

Coffee Drinker

It would be illegal for them to take money from your account without a court ordered bank levy. However, collection agencies are notorious for doing illegal things. Just because its illegal doesn't stop them. And what are you going to do? Take them to court and sue them when they have documentation proving that you owed them money? That isn't going to work out in your favor. So the general advice is NEVER give a creditor direct access to your bank account. Here's how I would proceed. 1. Make sure you have a written document from the collection agency stating that they agree to settle your debt in full for the negotiated amount. 2. Pay them via a method that does not give them access to your accounts, but does give you proof of payment. Option 1 is a wire transfer. They give you their bank details and you send the wire transfer. Your bank deposits money to their account but they never see your bank account number. You also have proof that the money was delivered (from your bank). Option 2 is to get a certified check (often called a cashier's check) from your bank for the exact amount and mail it via certified mail with return receipt. This gives you proof that it was delivered and a record of them cashing the check. Option 3 (worst option, but maybe okay), open a new bank account solely for this purpose. Deposit exactly enough to cover the settlement, allow the collector to deduct from the account, then close the account. The problem with this method is that most banks will allow them to overdraft your account and then you'll owe the bank for the difference AND the overdraft fees.

Stoo

That would be illegal. If you pay off the debt in full, they have no legal interest in docking you further. If that concerned, make it not direct debit - send them a one-time EFT or find another way to send money once and only once - but if they're a real credit collection agency they're not going to suck out more money than they're legally allowed to collect.