Unauthorized Debit

[mitme101]

I belonged to a mail order coffee club. They debited my account, without my permission or authorization. This debit caused my rent check to bounce. Therefore I incurred late charges, NSF fees and the landlord persued eviction processing. I had to pay filing fees and attorney fees in additon to the late charges, rent and NSF charges. I also has NSF charges from the bank for several other checks. The coffee company reimbursed me for the coffee (which I did not order, it was a "special shipment") and @25.00 via direct deposit and $165.00 in a check with a letter stating endorsement releases them from further liablility (which I did not endorse). My total costs, to date are $802.00. Do I have a case? Are they responsible?

 

[calalily]

Did you cash the check from the company? If you cash it then that is endorsement and you are agreeing to the terms. Something doesn't sound right that after one bounced rent check the landlord would start eviction proceedings. You must have had past problems with your landlord. How much was the coffee that caused all those checks to bounce? Did you try and square it with landlord after the check bounced? Did you notify the coffee company of all the late charges and bounced checks and other things you mentioned?

 

[mitme101]

No, I did not cash that check and don't intend to until I know where I stand. I had made an agreement with the landlord about the rent being late from the prior month. He was not charging me late fees as I had talked to him and arranged to pay both months at one time. I had not bounced any checks with the landlord, but since it was an agreement, he thought I had not held up my end of the bargain. The coffee was 39.95 for 4 lbs of coffee. I had just enough money after my paycheck was deposited to cover my rent and a check I had written at a local business. The timing is what caused the problem. I notified the coffee company several weeks before the eviction process started, they wasted time and then things started building up. I contacted them approximately 25 times. I explained what problems their actions had caused me and they didn't try to solve the problem until it had compounded to over $800.00 in fees and charges.

 

[mitme101]

Thanks for your interest...

No, I did not endorse the check and don't intend to until I know where I stand. I had made arrangements with my landlord to pay the rent late, due to a financial hardship and he was not charging me late fees. When the check bounced, he figured I had not held up on my end of the bargain, as I would have thought also and started eviction. I had written other checks to local businesses, which also bounced. I had just enough money in my paycheck to cover the checks. The coffee was $39.95 for 4 lbs. of coffee. I contacted the coffee company every day for several weeks trying to get this resolved before it compounded to over $800.00, they dawdled around and passed the buck until it resulted in a huge mess. The timing of items coming into the bank was what caused a lot of the problem, but if they had notified me of the pending shipment ahead of time, this would not have happened in the first place. I am a teacher on a reservation and on a very tight budget. I can't afford things like this to happen.

 

[calalily]

I guess I am not understanding everything, because I don't see how one item of 39.95 would cause all your checks to bounce. Once it bounced did the bank automatically charge a fee and then the landlord charged a fee and so the fees caused the other checks to bounce? You may be able to take them to small claims court but if they are out of state I don't know how that would work and you would have to prove that the one item caused all your problems. You could write the company and give them a copy of all the bank fees you were charged due to their negligence and see if they offer you more compensation and include the hardship and money for the eviction proceedings. In the meantime, google small claims court for your state and see if that is a possibility or not. There is not a quick remedy no matter how you handle it. See if there is consumer advocacy agency in your state/city that may be willing to help you. You can also file a complaint with the Federal Trade Commission and your State Attorney General's office giving them copies of all your documentation. Tell the company you are filing complaints with those agencies. http://www.ftc.gov/ Here is the Federal Trade Commission's Website. They may have a hotline you can call to get help.

 

[mitme101]

That is exactly what happened. I had 22.00 and some change in the bank. I made a debit purchase of 18.00 and on the same day they debited 39.95. That caused 2 overdraft fees. Then when I made my deposit to cover the rent, some went to overdraft fees and there wasn't enough to cover the rent check. Then there is the overdraft for the second deposit of the 18.00 debit, the one for the rent check, and the fees the businesses charge. It just keeps growing like a snowball. I contacted the company, they feel they are not in the wrong. I have contacted the BBB in their area. I spoke with my landlords attorney when I was paying his fees and he said to contact the Attorney General. He said that they should (no guarantees) be held liable for my costs and possibly damages. I am in the process of doing that. The company has an unsatisfactory rating with the BBB so I am not sure it will make much of a difference. Thanks for your input.

 

[mitme101]

That is exactly what happened. I had 22.00 in the bank. I used my debit for an 18.00 purchase. The very same day the unauthorized debit was posted, causing the bank to charge me an overdraft on both debits. Then I deposited my paycheck and the overdraft was covered but the rent check bounced. Total of 4 overdraft bank fees of 35.00 each and two 25.00 fees from the businesses. The fees just kept compounding. They totaled 190.00, then the attorney fees and filing/court costs added on are 802.00. The company seemsto think the 185.00 they sent covers their responsibility. I have notified them that I am persuing this with the Attorney Generals office. I have contacted the Better Business Bureau in their state and will continue until I have exhausted all of the possible avenues of justice. Thanks for your input.