Global Payment Check Recovery Services - Service Fee

[Dawn]

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

[fishbjc]

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?

[Dawn]

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.

[fishbjc]

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. 

[fishbjc]

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

[Dawn]

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.

[fishbjc]

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.

[Dawn]

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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.

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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.

[Dawn]

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fishbjc wrote:

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

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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

[fishbjc]

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