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Are forced direct bank withdrawals legal?

Discussion in 'Banking, Finance, Investments' started by aggiebones, Apr 11, 2011.

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  1. aggiebones

    aggiebones Law Topic Starter New Member

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    I've had my kids in a daycare for years and have NEVER missed a payment.
    Can they insist on my paying by forced direct bank withdrawal? And give no other options? Is it a case of if you don't like it, get out? Or can they legal not do this?
    I would prefer to give check like I have for 5 years or pay by bill pay FROM my bank.

    They just sent this form out yesterday ( I replaced the actual school with the term daycare X):

    "For those who elect to pay tuition by check, please note that Daycare X will no longer accept checks for paying tuition. Tuition will only be done through automatic bank withdrawal. By signing the authorization form, attached, you grant Daycare X the authority to automatically debit bi-weekly or monthly charges to your personal checking or savings account as tuition becomes due.

    Please fill the attached form and return it no later than Friday, April 8th.

    Daycare X tuition payment plan will be available only through automatic bank drafts.

    Daycare X will transmit your debit information to our bank for processing. The information will then be transmitted to your bank or savings institution for
    withdrawal from your account.

    Dishonored Payment - If your bank refuses any automatic deduction, a fee of $30.00 may be assessed. If we are unable to deduct sufficient funds on your due date, we will request a replacement payment by check or money order. Additional fees may be imposed by your bank. "



    Thanks to all who give advice
     
  2. army judge

    army judge Super Moderator

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    Sure, a business can request you pay them a certain way.
    You can refuse, and take your business elsewhere.
     
  3. mightymoose

    mightymoose Moderator

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    If they want to keep you as a customer they will be more flexible.
     
  4. aggiebones

    aggiebones Law Topic Starter New Member

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    It is located on the campus where I work. It is kinda hard to get into due to its location. I work about 30 minutes from home, so staying is the best option.

    It just doesn't seem legal for them to demand access to my account. I should be given alternative options to pay. I'm not happy about it, but have no alternative but to bend over to their demands. I was hoping for some legal recourse to avoid this, but alas.
     

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