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Car company allowed to withdraw money automatically?

zCypher

zCypher

Diamond Member
Just have a question here, cause I'm a bit confused as to what's going on. I will surely call both my bank and my car leasing company today, but I figured I'd post this here before I go to work and see what you guys have to say.

For some time, I was set up on an automatic withdraw plan, so that every 19th of the month my car payment would be withdrawn automatically from my account, nice and easy. Anyways I called them and told them to keep sending me the bill on paper and I will send checks instead! So I did that for quite some time and all was well with that.

But for some reason, today when I checked my balance, I saw there was an "AUTO PAYMENT" something or other, withdrawn from my account - for the exact amount that my car payment always is every month.

Now, yesterday was the 19th and today is the 20th - I've always sent out my checks so that they arrive on the 19th! Save for a few exceptions for when I send them on the 19th and they get there by the 21st or 22nd at the latest, in which case it's still acceptable and they've never had a problem with that.

But by the looks of this, they withdrew the money ON THE 19th! What if I had sent my check already?! I don't understand why they would do this, as I'm not late on previous payments.

I guess my real question is this ... is what they have done illegal? Since we already agreed that there would be no more automatic payments, how can I ever be sure they won't take money again if they do things like this? Argh.
 
No idea why, but definately call them up and bitch.. that could really screw someones balancing up.
 
Mistakes happen, you aren't the first & you won't be the last.

Before you start worrying about whether or not it's legal try calling them.

Viper GTS
 
If you tell them they have no permission to debit your account any more, then they have to stop. You might have to do it in writing or fill out a form or something but it's your account and you choose who can do that. if they refuse, just call your FI and tell them that a company is debiting your account WITHOUT your permission. I'm pretty that thta's a major federal crime....
 
If all else fails have your Bank change your account number AND/OR fund number, and that will put a stop to their autopayments.
 
You're the one who had to give permission for them to debit your account. You're the one who has to rescind that permission. Just because they orally agreed to do it by check, doesn't mean they can't draft your account as long as they have permission.

Is the payment due on the 19th? If so, it sounds like you have been late more than once and, this month, you were going to be even later since you hadn't mailed the check by the 20th. You say there hadn't been a problem with them getting it several days after the 19th but maybe they were flagging your account and, after a certain number of late payments, they decided to revert to the drafting method.

Best way to clear it up - ASK THEM, not us.

How could it be illegal for them to take it out of your account when you gave them permission to do so?
 
Originally posted by: allisolm
You're the one who had to give permission for them to debit your account. You're the one who has to rescind that permission. Just because they orally agreed to do it by check, doesn't mean they can't draft your account as long as they have permission.

Is the payment due on the 19th? If so, it sounds like you have been late more than once and, this month, you were going to be even later since you hadn't mailed the check by the 20th. You say there hadn't been a problem with them getting it several days after the 19th but maybe they were flagging your account and, after a certain number of late payments, they decided to revert to the drafting method.

Best way to clear it up - ASK THEM, not us.

How could it be illegal for them to take it out of your account when you gave them permission to do so?
Click to expand...
As I said in my original post, i posted this thread to see what you guys think. And like I said, I'm calling them from work (when I'm on break). It's nice to get insight from different people. And I do thank everyone thus far for their input.

Yes, I have been late once in the past. However, on their bills it states you have 7 days to send the payment. This would lead me to believe that I have 7 days to send the payment, it was 1 day when the payment was withdrawn. But you're right about giving them permission and having to rescind that permission, and I will definitely do so.
 
They may have just assumed you meant that you will send them a check and if the check doesn't arrive in time, they will auto withdraw. I've had a company say that to me. However, it's a pretty strange policy considering your check might arrive 2 days later and then you'd bounce the check potentially if they tried to cash it.
 
Banks are starting to process checks as electronic payments. I'm seeing more and more of mine show up that way. The notations on my online statements no longer just say "check 1375" or whatever. Possible that's all that happened to you this month.
 
However, on their bills it states you have 7 days to send the payment. This would lead me to believe that I have 7 days to send the payment, it was 1 day when the payment was withdrawn.

Well, then, it sounds like they got some splainin' to do. Be sure to update us as this could be problematic for others. Hope it all works out.
 
never give them authorization to auto withdraw your checking account. Use automatic bill payment offered by your bank instead. That way you're in control when and how much you pay.
 
zCypher,

Here's what you should do:
1) Call them, ask to speak with a manager. Write down the date, time, their name, badge ID/extension and their location. Ask them to confirm the ACH automatic debits have been cancelled per your request. Also ask them for their customer correspondance mailing address.
2) Type or write them a letter requesting they cancel your ACH payments. Make sure to include your name, address and complete account number.
3) In the letter request they CONFIRM IN WRITING your request has been acted upon and no further ACH payments will be debited.
 
Originally posted by: welst10
never give them authorization to auto withdraw your checking account. Use automatic bill payment offered by your bank instead. That way you're in control when and how much you pay.
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That's the way I feel about it. There was a time when the utility company where I live had a hiccup and I received a water bill for $10,000. If I had had automatic drafting the mess could have been mind-boggling.

I pay bills online through my bank's website and would not be comfortable allowing people to draft from my account.

My mother-in-law says she would never do online billpay and have all her information "out there" for someone to find, yet she is comfortable giving several entities her bank information and permission to draft her account.

My children pay bills online, but mostly do it through the site of the company they owe rather than the bank's site.

A friend of mine would never pay anything via internet for fear of someone stealing the info AND she would never allow for automatic drafting.

Different strokes for different folks.


 
Originally posted by: Apathetic
Contact your bank and stop the autopayment.

Dave
Click to expand...
My mom was just telling me the other day that she had canceled auto-payment for some utility service, but they kept billing her for three months even as she called them multiple times to ask them to stop.

She says that asking the bank (credit union) to stop the payment cost her $15, but it resolved the auto-payment problem immediately.

I prefer online bill payment through my bank. Pushing money out of my one bank account seems like a much better idea than allowing muliple companies to pull money out of my account.
 
Personally I don't give ANYONE permission to autodraft. I broke my rule for my mortgage payment because it is so critical that it arrives on time. No one else has access nor will they ever. Just remember if they screw the bill up they are gonna debit you and then you have to fight to get your money back, if you pay by check you can refuse to pay a bill in error.
 
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