Posted on August 21, 2009 at 1:27 pm Everything I've read says I should never give a collection agency my bank account info.  So when they demanded it, I told them no, I'd rather mail it to them.  So they threatened to push it to further collections (whatever that means), and I told them that everything I've researched says I don't need to give them the info, and that I absolutely won't.  So, in the end I got the PO Box, but he still said he would move it into further steps of collection (again, what does this even mean?).They said if I sent payments through the mail it wouldn't take my account out of Active Collections.  What are my options other than giving them my bank account, and what does this "further action" or whatever mean?

Posted on August 21, 2009 at 2:23 pm It is a threat tactic and one that is meant to scare you.  Never give out your bank account information.  It is illegal of them to ask it of you.  If they do so again, get the name of the collection agent and file a complaint withe BBB and the Fair Credit Act.

Posted on August 21, 2009 at 2:47 pm Yep, the only reason why they want your bank account information is because in case they do actually sue you and obtain a judgment against you - they know what bank to send the restraining notice to in order to freeze your assets.  But it's rather silly cause it's pretty easy to find out bank account information anyway.

Posted on August 21, 2009 at 9:45 pm I think this will not be necessary. Perhaps we simply let our bank account number for the deal. we don't need to provide bank account info in detail

Posted on August 23, 2009 at 6:16 pm Many debt collectors claim that the information they will obtain will be "secured" and that it will not be distributed or freely given out, or used to their advantage. Typically they state that a check-by-phone transaction is the safest way to set up a payment arrangement with them. One downside I believe to setting this up is the fee that the customer needs to pay, which is around $10-$15.