Unauthorized withdrawl from bank account

Status
Not open for further replies.

fjames

New Member
My jurisdiction is: California, USA

I contacted a company by phone for details about their advertised service. I described my problem which they said that they could help. They requested some additional information from me prior to concluding that they are experienced in handling such cases. I asked about the cost of their service which they explained. I indicated that I did not have the money in my bank account to cover the requested amount, and I would have to transfer money into the acoount. He asked "How long will it take to transfer the money". I responded "at least 24 hours or more". He responded saying that He would prefill information on their engagement forms as well as the authorization form for the withdrawl of their payment. These prefilled forms will be sent to me for signature and to be returned to them so that they can start working on my account.

Prior to any further contact with the company, my bank account showed a withdrawl from my account by this company, and caused an overdraft with daily OD charges because of the negative balance. I promptly contacted the bank and informed them of this unauthorized withdrawl. I filed a dispute with the bank, but could claim fraud because the bank said that I gave the company my account number.

I contacted the company and after much discussion they said that the amount will be refunded but it will take three weeks in order to disburse a check. I requested a specific date which they gave for the disbursement. On that date, I called and was informed that I needed to sign a Refund Stipulation and Settlement before receiving my money back.

The document states that signing means acceptance, mutual accord, satisfaction on all accounts, and release of any and all claims against their company and employees. Further, All transactions, communications, documents, and discussions are sealed between all parties.

If there is a breach, I am liable for the already paid amount plus legal and court cost.

Summary

1. This document was written for their protection after making an unauthorized withdrawl from my account and causing accumulating bank charges and loss of use of my money for these 24 days.

2. I did not engage this firm, authorize any transaction on my account, and did not use any of their services other than one telephone call to find out what they had to offer.

Questions: What rights do I have regarding this company?
What rights or recourse do I have with the bank which should have returned the request for payment because of insufficient funds?
Who should pay for the daily accumulating cost and 24 days of enrichment at my expense?
 
If you sign that agreement you are bound to it. That is all they will pay for. If that is not acceptable call them back and tell them what you will accept. If they refuse send them a certified letter stating you will sue for some considerably higher amount (everything you can think of). Their job is to make you feel you have to take their offer, you don't. What you have to do is figure out if it is worth the trouble to get more. That's up to you, good luck check back.....
 
A lot depends on the paperwork you signed with them. Normally when you tell them they cannot deduct money until a certain date, then you would not be liable for the overdraft fees if they do. It would be the same as if you sent a post dated check. But the problem comes in with the paperwork. What was on the part you signed?

I would go back to the bank, and talk to the bank manager. Simply explain that while you did give the info, you also specified that the money was not to be deducted until a certain date, but they deducted it prior anyway.

I would also file a complaint with your state attorney general's office.
 
Depending on what state you are in a post dated check is good on the date written regardless of what date is on the check. Also, while you can file a complaint with the Attorney General or Governor's office of Consumer affairs they are not going to work to get your money back. They may, if it is wide spread investigate and punish the company.
 
Follow up

I wrote an agreement to settle the issue. With minor revisions, the other party and I have resolved the issue. The bank will also agree to reimburse the runaway charges against my account. Although this situation caused 6 weeks of interruption, it is settled fairly for all parties.

Thank you for responding to the request.:)
 
Status
Not open for further replies.
Back
Top