Collection Agency Took Money from my Account Early- Legal

[Cherylbestmomever]

I was sent a settlement agreement from a collections attorney. The agreement was that I would pay them $550.00 on 8/29/08 yet they have already taken the money out of my checking account and today's date is 8/22/08. I also did not sign the agreement and send it to them. Is it legal for them to do this?

[Credit Expert]

Unless you have an agreement in writing it is a verbal agreement and it’s there word against yours. If you did not give them permission to debit money from your account, I would consider that fraud. You should report this to your bank and file a complaint with the FTC at http://www.ftc.gov.

This is a very common problem. Be on the look out for a remaining balance. It’s also really common for junk debt buyers and collection agencies to apply settlements as regular payments then sell the debt to a new collector leaving you with a balance and adding a new entry to your 3 credit reports.

[Sandifer]

Whenever u are doing these types of settlement agreement then first of all you have to take the signature and the legal documents from them o u will be in plus side . And read all documents correctly before doing signature in it.