Can Collection Agencies Take Money From Your Bank Account

Can Collection Agencies Take Money From Your Bank Account

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Can Collection Agencies Take Money From Your Bank Account

Can Collection Agencies Take Money From Your Bank Account? The question of whether or not you can be forced to give up the ownership of a certain asset in a civil suit often comes up when one is approached by a collection agency to recover money that was owed to another party. It can be difficult to tell if this sort of thing actually takes place, since no one ever says that they have had to turn over a particular piece of property in a court of law. However, if you have a particular bank account or credit card account that has been accessed by a collections agency in an attempt to obtain money for some reason, it will be necessary for you to be aware of the legal ramifications that are likely to come around if this occurs.

First, it is important to realize that any money that has been accessed from your account is, in fact, a seizure. Therefore, it will be up to a judge to determine what the scope of the seizure was. If the funds were obtained to settle a debt, these will almost always be discharged by the courts. However, if the money was obtained in an attempt to recover a judgment, it may very well prove extremely problematic as you go through the legal system. In some cases, the bank may simply freeze the account, and in some cases they will simply cancel the account. While the bank may decide to suspend operations in an effort to protect its capital, account holders will have to work to re-establish their ability to access the funds. In addition, it may be necessary for collection agencies to supply the missing funds to the appropriate parties.

Recovering a debt from a credit card is a slightly different situation than attempting to retrieve money from a bank account. When a credit card is stolen and used for purchases, the account holder is liable to repay the full amount of the credit card debt. If it turns out that no payments were made, the issuing company may sue in order to recoup the balance. This is where the issue comes in, because if the company has not received the funds that are due, they cannot go after the account holder for recouping money.

Can Collection Agencies Take Money From Your Bank Account Legally

Collection agencies can legally take money from your bank account without first obtaining a court order. In order to be able to collect on this type of debt, they have to have enough evidence of an account holder’s inability to pay. Often, this evidence comes in the form of missed or late payments. If a bank account is routinely accessed by a credit card that has been maxed out, the situation may not even be worth pursuing.

In short, if you think that collection agencies may take money from your account, the best course of action is to consult with an attorney. It is important to note that in most states it is illegal for collection agencies to take money from a bank account without first obtaining a court order. If you have already tried to contact these agencies, be sure to write down their phone number and/or address (and make sure they respond). Additionally, be sure to ask the agency to provide proof of how they access the account in question. While this is not usually a difficult task, it is always better to be safe than sorry when it comes to your financial stability.

Collection Agencies Phone Numbers:

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

After Paying Off Collection Account
Collections

After Paying Off Collection Account

After Paying Off Collection Account If you think you are getting a good deal after paying off collection accounts, think again. In most cases, the

Account In Collection
Collections

Account In Collection

Account In Collection An account in collection usually stays on your report for seven years, and 180 days after the date when the account first

Do You Want To Boost Your Credit?

drop us a line

Call Now ButtonCall Now