Unauthorized Checking Account Draft

[elbo]

I entered into an agreement with a debt settlement company to assist me in settling my debt. In June, 06, that company changed hands and I was notified that my settlement funds, which were previously held by me, would be transferred to a 'Noteworld' account. I was notified that my current funds available should have been ~$2300.00 and I agreed to have this amount debited on 8/4/06. Between June, 06 and 8/4/06, one of my last 2 accounts settled for 1700.00 which was debited from my checking account in July, 06. I informed the debt settlement company that the 1700.00 was a part of my accumulated funds and that it would have to be deducted from my planned debit on 8/4. They agreed to this and on 8/4 my account was debited 615.00 and monies placed in a fund in my name. In August, I received notification that my last remaining creditor was suing me for the balance of my account in addition to late fees, finance charges, and attorney fees resulting in a total of 2.5 x my original balance. The debt settlement company said that this creditor was not willing to 'settle' for the customary 40% of my original balance. I was notified that a payment schedule of 354.00 per month for 3 yrs would be set up and that the first payment would be made from my settlement account and the balance of my account would be sent back to me. I would then take over the payments. On 9/4/06, my checking account was debited 621.09, resulting in a negative balance in my checking account and 90.00 in overdraft fees. The debt settlement company told me that the debit was made to secure 40% of my original balance so that a settlement offer could be made. When I asked why a settlement offer was even being considered when I was previously told that it was not available, I was told that I was correct, my only option was to pay the 354.00 per month. In researching their conversations with me, they realized that the 621.00 had been set up to secure the 40% but that authorization was needed. Someone dropped the ball and never obtained authorization from me. "It was debited in error." They assured me that the total amount in my account (~1200.00) would be returned to me in 7-10 days. In the meantime, I will incur additional overdrafts when my housenote is auto drafted next week and this leaves me without a penny available to me for the next 7-10 days. Also, the first 'installment' to this last creditor is due on 9/17 - because of this cluster f---, I will not have the funds available to pay. I am outraged!! I am a single parent with no access to my money to buy milk for my child!! What are my options? Any suggestions would be appreciated.

 

[Michael Wechsler]

I entered into an agreement with a debt settlement company to assist me in settling my debt. In June, 06, that company changed hands and I was notified that my settlement funds, which were previously held by me, would be transferred to a 'Noteworld' account. I was notified that my current funds available should have been ~$2300.00 and I agreed to have this amount debited on 8/4/06. Between June, 06 and 8/4/06, one of my last 2 accounts settled for 1700.00 which was debited from my checking account in July, 06. I informed the debt settlement company that the 1700.00 was a part of my accumulated funds and that it would have to be deducted from my planned debit on 8/4. They agreed to this and on 8/4 my account was debited 615.00 and monies placed in a fund in my name. In August, I received notification that my last remaining creditor was suing me for the balance of my account in addition to late fees, finance charges, and attorney fees resulting in a total of 2.5 x my original balance. The debt settlement company said that this creditor was not willing to 'settle' for the customary 40% of my original balance. I was notified that a payment schedule of 354.00 per month for 3 yrs would be set up and that the first payment would be made from my settlement account and the balance of my account would be sent back to me. I would then take over the payments. On 9/4/06, my checking account was debited 621.09, resulting in a negative balance in my checking account and 90.00 in overdraft fees. The debt settlement company told me that the debit was made to secure 40% of my original balance so that a settlement offer could be made. When I asked why a settlement offer was even being considered when I was previously told that it was not available, I was told that I was correct, my only option was to pay the 354.00 per month. In researching their conversations with me, they realized that the 621.00 had been set up to secure the 40% but that authorization was needed. Someone dropped the ball and never obtained authorization from me. "It was debited in error." They assured me that the total amount in my account (~1200.00) would be returned to me in 7-10 days. In the meantime, I will incur additional overdrafts when my housenote is auto drafted next week and this leaves me without a penny available to me for the next 7-10 days. Also, the first 'installment' to this last creditor is due on 9/17 - because of this cluster f---, I will not have the funds available to pay. I am outraged!! I am a single parent with no access to my money to buy milk for my child!! What are my options? Any suggestions would be appreciated.

Did you have follow up conversations with this company? Could the company reopen the discussion to explain the neligent mistake? If they just told you "too bad so sad we're sorry" then perhaps you may want to tell them that you'll implead them when you get sued for the balance. Maybe that will jog them to attention? Good luck with this.

 

[calalily]

What does implead mean?

 

[elbo]

Thank you - it definitely got their attention. After 12 days of no refund and 6 overdraft fees, I was finally able to talk to a manager. My money was immediately electronically transferred back into my account with much apology and my overdraft fees refunded. I'm still upset that it caused me so much hardship for 2 weeks but at least I have my money. I appreciate your help.