topic Re: Global Payment Check Recovery Services - Service Fee in General Credit Topics

Global Payment Check Recovery Services - Service Fee

Dawn — Fri, 25 Jan 2008 03:16:38 GMT

What rights does DD's BF have in relation to Global Payments Check Recovery Services' unauthorized attempt to ~~electronically bill~~ process a demand draft created by them against his account for a $32.06 "service fee" for processing a return check item?

Although a friendly bill would have been more appropriate, they sent a debt collection letter that specified that he had 30 days from receipt of the letter (dated Jan 4) to dispute. However, he did not dispute. He mailed a check to them on Jan 15. On that same day, they had already initiated an unauthorized ~~EFT~~ demand draft against his account, generating another $25 NSF fee charged to his account by his bank.

Global Payments has now received his paper payment, and apparently posted it to his account, as they said he has a $0 balance. His bank confirmed earlier this evening that they had the check in hand ... it should post to his account tonight. Oops ... after receiving a copy of the "check" from the bank, it was a demand draft that Global created and sent to his bank. His personal check that he mailed in has not cleared his bank yet. The reason Global said he had a $0 balance is because they don't realize that their unauthorized demand draft bounced.

Any chance that he can collect the $25 NSF fee from Global Payments if the bank doesn't waive it? And ... even if they do waive the fee ... who does he complain to about Global Payments' tactics?

We are in Texas ... the check was mailed to Chicago, IL.

Message Edited by denbar2003 on 01-24-2008 09:16 PM

Re: Global Payment Check Recovery Services - Service Fee

fishbjc — Wed, 23 Jan 2008 02:59:43 GMT

I'm not positive in this case, but I've seen it written where your check will be presented electronically & if the funds are not there, they have the right to re-present it and add fees.

If he's in good standing with his bank, they'll probably give him a break on the NSF, otherwise he's probably stuck for it.

Keep us informed ok?

Re: Global Payment Check Recovery Services - Service Fee

Dawn — Wed, 23 Jan 2008 03:09:52 GMT

The actual check is not the problem ... they can re-present it electronically. The problem is the additional service fee of $32.06 ... as far as I can determine, can NOT be presented electronically without prior notification of the amount and obtaining authorization.

Re: Global Payment Check Recovery Services - Service Fee

fishbjc — Wed, 23 Jan 2008 03:13:08 GMT

I'm thinking back here...I did receive a NSF from the Postal Office collectors. I received a letter from them asking me to call & there were fees involved. I immediately called & paid it off.

I'm just not sure in your case.

Re: Global Payment Check Recovery Services - Service Fee

fishbjc — Wed, 23 Jan 2008 03:22:58 GMT

I found out that, yes, the fees can be electronically debited in addition to the NSF Check.

Yes, this can be processed electronically, however, certain guidelines must be adhered to, and it must be a separate transaction from the original check amount.

This was found on the check recovery website.

also known as Representment, (RCK) is a new process of recovering NSF checks by converting the check into an electronic transaction. The customer's account is debited for the amount of the check and the collection fee.

Sounds like that's what happened to your daughters bf.

Message Edited by fishbjc on 01-22-2008 07:22 PM

Re: Global Payment Check Recovery Services - Service Fee

Dawn — Wed, 23 Jan 2008 03:27:33 GMT

He was perfectly willing to pay the fees ... if he had been informed in advance what they would be and given time to pay them. The problem here is that they asked for payment, but charged his account before they gave him time to get the payment to them. If he had known they were going to do that, he would have made sure money was in the account.

This account is supposed to be closed ... it's only in the picture because he mistakenly picked up the wrong checkbook when he made the original payment. As soon as his bank notified him of a problem ... he made sure funds were in that account to cover the check.

Re: Global Payment Check Recovery Services - Service Fee

fishbjc — Wed, 23 Jan 2008 03:32:14 GMT

He's pretty luck he only received a $25 fee...my bank charges $50 for closed accounts. Had his bank not honored that 2nd electronic payment, he may have been charged another fee by Global.

He also needs to make sure they didn't send him to TeleCheck.

Re: Global Payment Check Recovery Services - Service Fee

Dawn — Wed, 23 Jan 2008 03:33:22 GMT

fishbjc wrote:
I found out that, yes, the fees can be electronically debited in addition to the NSF Check.

Yes, this can be processed electronically, however, certain guidelines must be adhered to, and it must be a separate transaction from the original check amount.

The critical part here is that "certain guidelines must be adhered to." This quote does not spell out what those guidelines are.

I'm reading regulations now ... and everything I run across tells me that they have to notify at the point of the original payment how uncollected funds will be processed. This would mean that the medical provider would have had to spell that out on their bill since he never set foot in their office ... it was for the anesthesiologist's services. If the provider does not spell that out on their bill, I don't think the check recovery company can be this aggressive.

Re: Global Payment Check Recovery Services - Service Fee

Dawn — Wed, 23 Jan 2008 03:35:08 GMT

fishbjc wrote:
He's pretty luck he only received a $25 fee...my bank charges $50 for closed accounts.

It's not officially closed ... he was in the process of letting it sit a while before it was closed entirely when he mistakenly picked up the wrong check book. Credit Unions are great to work with though

Re: Global Payment Check Recovery Services - Service Fee

fishbjc — Wed, 23 Jan 2008 03:37:03 GMT

He should call TeleCheck to make sure they didn't toss his name in there.

Re: Global Payment Check Recovery Services - Service Fee

Dawn — Wed, 23 Jan 2008 05:29:01 GMT

The following are examples (from Regulation E) of the type of disclosure that the provider/merchant should provide regarding Electronic Fund Transfers to collect service fees associated with uncollected items.

This type of disclosure was never provided ... and the office staff at the doctor's office was clueless as to how "they" handled these situations. Had the medical provider's staff been informed and able to relay information to their patients so DD's BF knew exactly what to expect ... I wouldn't be burning the midnight oil here.

http://www.fdic.gov/regulations/laws/rules/6500-3100.html#6500205.2

A–8 MODEL CLAUSE FOR ELECTRONIC COLLECTION OF
RETURNED ITEM FEES (§ 205.3(b)(3))

If your payment is returned unpaid, you authorize [us/ name of person collecting the fee electronically] to make a one-time electronic fund transfer from your account to collect a fee of [$ _______ ].

[If your payment is returned unpaid, you authorize [us/ name of person collecting the fee electronically] to make a one-time electronic fund transfer from your account to collect a fee. The fee will be determined [by]/ [as follows]: [ _______ ].]

[Codified to 12 C.F.R. Part 205, Appendix A]

Re: Global Payment Check Recovery Services - Service Fee

Anonymous — Wed, 27 May 2009 17:59:46 GMT

I too was charged an unknown $30 service fee after I had a check bounce for a dental visit that I was not informed of at the time of purchase. I paid the original charge shortly after it was converted to a collection. I paid the dentist's $25 bounced check fee and now over 7 months later, Global payments continues to contact me over a fee that I never knew about or agreed to. They refuse to stop calling and just put it on my credit. Instead they call me 2-3 times per day, initially accuse me of not paying anything, then after reading on in their notes, they see I just refuse to pay that crap of a fee. I'm sorry but the dental office never mentioned it, seem not to know anything about it, I never agreed to it, and it won't get paid by me.