Posted on June 10, 2009 at 9:39 pm ...... so that my debts can be paid? aren't they supposed to inform me first before they do this? isn't this a violation of my rights as a consumer????

Posted on June 10, 2009 at 10:54 pm 99 Red Balloons~Yes--if you owe your money from your bank, that is. It may sound ironic, but they may be doing so because you authorized them to do so. A number of written agreements on financial institutions include a provision stating that as a client, you agree to let the bank to automatically withdraw a certain amount from your account to serve as payments on a loan from them, in the event that you defaulted. Since you also signed in on that agreement, they need not inform you in advance of what they were to do.

Posted on June 11, 2009 at 12:58 am I agree with Karess, that's why it's really important to read the fine print before signing. In my understanding, banks can also automatically charge funds from your account any fees or surcharges that have resulted from bounced checks.

Posted on June 11, 2009 at 1:28 am On the other end of the spectrum, if your creditor is not your bank, your original creditor or debt collector needs to send notice to your financial institution stating that they have won a judgment against you, and that the court has granted them access to your bank account. If your employer automatically deposits your monthly pay on your account, the lender also needs to write to your employer stating that your wages need to be garnished in order for the debt to be paid.

Posted on June 11, 2009 at 2:19 am what is the proper procedure for these debt collectors to do this anyhow? shouldn't they inform me?? my right are violated and i do not want that to happen!

Posted on June 11, 2009 at 3:44 am Here's how it works:1. Debt collector files case against you.2. If they win, you'll get a judgment. The judgment tells you how much you owe and allows the creditor or collector to make a garnishment order against you.3. Your bank will be directed to turn a portion of your funds over frm your account to theirs, to get the debt paid.This is not applicable in all states, though. Debtors living in PA, TX, NC, and SC are granted immunity from garnishment.

Posted on June 11, 2009 at 7:34 am Ok their is some good information here but also some confusion in terms of how the collector can get paid back and what collection rights they possess. First of all, Karess was correct in her statements about banks taking funds directly from a consumer's account if they have defaulted on a loan or credit card with that financial institution. It is possible that you signed some type of contract that contained this clause without ever realizing this. And yes, if you do not bank with the particular institution, they would have to obtain a judgment and execute that judgment through a bank account levy to pull funds from one of your accounts. First, they would have to file a lawsuit, then obtain the judgment, and only if the debt was left unresolved at that point would they potentially move to execute said judgment through a bank account levy. Usually, however, if you owe a particular bank and do not have an account with them, they will first try to garnish a portion of your wages if you leave the debts unresolved. This is a different scenario then owing your own bank, because if that was the case it is much easier for them to just take the money from your account since they have all of that information already and know what is available to them. Again, for a wage garnishment to occur, the owed creditor or financial institution would first have to file a lawsuit, obtain a judgment and then move to execute that judgment. If they choose to proceed like this, they would send your employer a notice of garnishment as well. PA, TX, NC and SC are in fact non-garnishment states, however, I am not aware of any laws that prevent creditors in these states from trying to levy a bank account, so be sure to differentiate between the two situations. Are you behind on your payments? Do you have a levy on an account already? If you care to share more information I would be glad to try and give you some pointers.