Does anyone know the Statute Listing for a CA accepting a Post-Dated Check?

[PayYouNever]

I know that it's against the FCRA or FDCPA for a CA to accept a post-dated check or in my case make an unauthorized debit my account.

I receive a letter from a law firm regarding a debt that I owe, in which the original collector (not the OC, as it was from an auto insurance claim) debited my account twice in a two day period. I authorized one, but did not authorize the other. The second unauthorized debit caused several NSF charges to be charged against my account, and it the CA operated was basically like, "that's just too bad. we'll apply it to the next payment." But I was like, there might not be a next payment 'cause you just f*cked my account up."

I was just going to chalk it up as a loss, but I remember reading one of the federal statutes about how a debt collector can't take a post-dated payment or an unauthorized payment, otherwise they're responsible for a $1000 fine -- which is just about what I owe.

[Anonymous]

Yep-

Google  FDCPA

This falls under

§ 808. Unfair practices

I would sue them for this and any damages-

[Anonymous]

There are also ACH rules that they have violated- but the FDCPA violations are going to be easier to prove-

[PayYouNever]

Timothy,
Do you know what ACH Rules that the CA violated?

I just received a letter from the CA's law firm and they're looking to collect on the debt; obviously they're unaware of the unauthorized billing by their client, so I'm preparing a letter to send to the law firm.

I'm planning on saying,

This is an alleged debt that I'm not saying I owe, but in regards to this matter your client Sequoia Financial, who claims I owe them $XXXX.XX made an unauthorized debit to my checking account on XX/XX/2007. I had made arrangements to make a payment for $XXX and your client not only billed my account for that amount, but went ahead a billed me again the same day.

When I call to protest the second UNAUTHORIZED billing, I was told my agents of your client that there was nothing they could do about refunding the money, nor did they intend to refund the money, and that they would apply the unauthorized amount toward the alleged current balance.

This unauthorized billing caused me to miss other payments, caused NSF charges, prevented me from eating for the remained of the week, and forced me to take a payday loan in order to have money for transportation and to pay other creditors. Not to mention the mental anguish, embarrassment and inconvenience that resulted from your client's unauthorized and criminal actions.

As it stands, your client claims that I owe them $XXXX.XX. Their criminal actions cost me XXXX, not to mention their criminal actions are in violation of FCRA 801 etc. This violation is carries a fine of $1000. This $1000 plus the damages that resulted from the unauthorized and therefore criminal actions of Sequoia, equal $XXXX. Which outstrips the amount of the alleged debt. I am willing to forgo any law suit from my aside if your client is willing to a) absolve me of this debt considering that they owe me more than they claim I owe them, and b) they discontinue any reporting of the debt to the three national credit bureaus - immediately; as they are currently defaming my credit.

Then comes my salutations and contact info...

Your thoughts?

[demi]

How interesting, I had no idea.  I had a friend (since passed away) who about 5 years ago started paying of her student loans...and posted 2 years worth of checks for payments.  Somehow they never had appeared on her Credit reports, but she needed to clean them up anyway (now I am suspecting may FHA loan?) and if I recalled she did this so they would not report on her credit reports.  

[Anonymous]

I had no idea that it was illegal for a CA to take a post dated check. What is the difference between a post-dated check by phone and a pre-authorized ACH withdrawal? I had a CA do that because they were going to sue me back in 2004 and I set up 3 payments with check numbers and everything over the phone... I obviously need to read that part of the law...

[Junejer]

Not sure of which ACH rules were violated, but typically speaking electronic banking transactions are much heavier regulated than normal banking transactions.

[PayYouNever]

In my situation Sequoia Financial threatened legal action if I didn't set-up a payment by phone on a day they reached me at work, then they proceeded to charge my account twice; the second one was unauthorized and yes a mistake on their part, but they refused to credit back the money, told me it was for my own good, and ultimately refused to do anything even when I told then it was going cause havoc to my account.

I then found out that it's a violation to collect money this way, and am firing back against the CA and its law firm.

[Junejer]

Also is illegal for them to threaten a lawsuit if they aren't going to follow through or intend to do so. Violates FDCPA.

[Anonymous]

You can give them the checks- they just can't deposit them early-

I am having problems finding the ACH aricles- I know my MIL has them- 

A complaint needs to be submitted in 90 days (if posible)

BIG BIG fines-

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demi wrote:

How interesting, I had no idea.  I had a friend (since passed away) who about 5 years ago started paying of her student loans...and posted 2 years worth of checks for payments.  Somehow they never had appeared on her Credit reports, but she needed to clean them up anyway (now I am suspecting may FHA loan?) and if I recalled she did this so they would not report on her credit reports.  

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