Warm cookies from your grandma!

Tweety
I read your post, and it does worry me alot. How can your bank or any bank allow someone to withdraw without your approval. Also, it worries me how they got your new info. How did they know it was you? What other info were they given to tie the new account to you. I mean what if someone else has the same name as you? Did this company just arbitrally take funds even if they were not sure .
I hope i made myself clear, i know i was rambling, but this situation has me very worried, and very angry

I did open another account. I was very pleased with my bank. I'm just really upset that they did this.....

It does happen, but very rarely. Every once in a while a pdl will manage to find the new account info. But I would say that this happens about 1 out of 200 . . . . . So the odds are on your side. The good thing is that you will be able to get the bank to reverse the charges.

Kashzan - The odds are on your side. This isn't the norm, so don't worry about it happening to you.

Goudah
Thanks so much for easing my fears.
Dont know why, but today everything seems to be worrying me. Since i found this wonderful forum, I have been calm and not afraid any more. Today,however all old fears came back. I guess its natural as I am still new at this. Everyones support sure does help
chase away the fears and the blues. This site and the
really great members is a blessing
Tweety
Im sorry that this mess happened to you. Keep us posted as to weather your bank refunded the fraudulant deductions. These companies really need to be stopped. To me its like they are trying to make stealing legal

Really, odds are greatly on your side.

There are a few ways I know that the pdl or collection agency gets your new account info. Some of the ways you can prevent.

1. Take out another pdl with the new account. New pdl is related to old pdl and they share information and hit your account.

2. Collection agency or pdl uses skip tracking, a process that goes through public records and databases of information looking for anything about you. They then use that information to track down your new bank. Technically, your account info should not be in these databases, but sometimes it is.

3. They checked your Chexsystems report, or telecheck, or another similar report. They see what bank you went and applied at. They then try to debit the account using the contract and your ss#. Some banks will allow this. Some pdl's put in the contract that once you defualt you give them authorization to debit any account they may find in your name.

I'm sure there are a bunch of other ways that they could get your new account info too, but it is very rare for this to happen. Plus, it is very easy to dispute such a transaction, since this company doesn't have any authorization to debit this specific account. So if by any chance this does happen to someone else, dispute ASAP. You should get your money back.

I did tell this "dave" I was going to file complaints and he told me "to do what I needed to do"

Dave sounds like a real idiot !!!!!

Couldn't you also get them for theft of some sort since you did no tauthorize from this account and they just took it upon themselves? I don't mean to sound stupid, just curious since you didn't give them this info for repayment.

PS - good way to get attention, and now thanks to that tag line, I feel the need to bake some chocolate chip cookies......mmmmmmm

This is very upsetting, although I do believe Goudah that it's probably not very likely to happen, but still. It makes me want to keep my money under my mattress, and not in a bank!

The odds of this have to be slim, and to be honest, this sounds criminal to me.

Yes!!! Like I said its as if they are trying to make stealing legal. It does make you wonder about where you keep your money. I suppose though that Goudah is correct and this is very rare. I have not seen any other posts regarding this happening to anyone else.
I have just opened my third bank account, and really dont want to have to worry about it. First one closed because of PDLS, second one closed because i bought something on the net and was scared that they could get my account info somehow,. This third account I am guarding with my life. I will never put this number anywhere, or give it to anyone. I have learned my lesson

What i do to minimize any "loss" is this:

I have 4 bank accounts. My workplace allows me to split up my direct deposit between as many accounts as I want, so this works well. That way if one account gets hit by something it shouldn't, i still have money to live off of in the other accounts.

But I really got burned by my bank, and have little trust in them. I would say I'm pretty paranoid when it comes to banks . . . .

I'm totally confused here. How in the world did they get tweety's new bank information? This was a pdl from a year ago? And suddenly they found tweety's account information and debited her account? tweety, did you apply for any other pld's with your new account information? As stated in an above post, if this is the case, it may have been a related pdl and they found you. If you hadn't applied for any pdl's with the new account information, I find it amazing that a year later a pdl can come out and find your new bank information.

Cannr, I'm thinking the same thing. Tweety didn't say she applied for any new PDLs though. So, how can this happen? Goudah mentioned that they could have gotten the info through Chex, and I guess that's possible. Hard to believe, but possible.

My point is how can they jut go into someones bank account and debit the funds without any authorization?

I would file a police report. Something is very wrong here. I

I would file a police report. Something is very wrong here. These places can't just go into someone's bank account and take what they think you owe them! In order to get into someone's bank account, there is a whole court procedure they would need to go through (serve you with summons, get judgment, etc.).

tweety, just like all the other pdl's. Even though we "revoke their debit authorization", they continue to debit our accounts (or at least try to). Or how about the people that have made their final payment, only to have the pdl come in behind them and take more money out again? Of course, you needed to file those fraud charges (which you did) and your bank rejected their debit (which is wonderful). But now, are they going to come back and attempt to take the money again? Probably. Have you done anything regarding this account now that they have this information?

It's not that they get the information through Chex, but when you apply for a new bank account and the bank runs your chex report, it shows as an inquiry. So then the pdl company checks the report, sees the inquiry, and they now know what bank you bank with. The pdl can then sometimes use your ss# to debit the account.

There is also a process known as skip tracking that collection agencies use. It seaches a bunch of databases and other information to find out about you.

Another thing, and this I didn't even want to mention because it is a super scary thought. So I will preface it with this - ***Please do not freak out and think this will happen to you. Odds are very much on your side. And this is only just an idea from my mind. I do not know of any instances of this happening. It's just a thought.

Okay, so you know how ultimatly a lot of the pdl's are in the end owned by banks? Well . . . . . If a pdl is owned by a bank, and you happen to bank with that bank, then there is a chance that the pdl will get the account information just because it's a related company.

AAAAAAARRRRRRGGGGGGHHHHHH!!!!!!!!!!!!!
That was a scream, by the way.

I really think it's a long shot . . . . I was just thinking out loud.

I think the most common reason people's new accounts get hit is that another pdl was taken out. If you don't take out any new pdl's, then I would say that your new account should be 99% safe. You would be more likely to be hit with regular old ID theft then by the pdl.

Before you go and file a police report you may want to take a look at your original contract. I know that on most of mine was a clause saying that once you defualt, you give them authorization to debit any account you may be a signer on, and that this authorization may not be revoked until the loan is paid in full.

Now I know that they cannot require you to pay by ach, so it is revokable, but I think the police would tell you this was more of a civil matter then a criminal one. If the clause is on your contract, then it would be a contract dispute, not theft. Because on their side they are saying that in the contract you signed it gave them authorization.

but am i alone here? does anyone agree with me that they should NOT just go into my account and just debit funds without mine or anyones premission? that really is my outlook on it. maybe i'm wrong?.

I agree that they shouldn't. I'm just saying that to them, they think they have permission.

Tweety, check your orginal contract with them (if you still have it). See if that clause Goudah spoke of exists. My guess is that it doesn't (but I could be wrong).

Now I'm wondering if MTE has this clause.

:runs off to read documents:

I agree tweety. They should not be able to just go into your account and debit. You are correct in feeling the way you do. I would feel very violated if it happened to me

Here is what one of my contracts stated:

What if you get a different account all together? Can they still just go in and debit someone's account? I shouldnt of gone to the bank then and explain the situation?

I'm lost, confused, and terrified and feel violated all at the same time? Now, I will start to feel guilty because I filed the dispute.....

Goudah, I don't see in that clause where it says that they have authorization to debit ANY account you may have, just the initial account that they deposited the money into. There's a very big difference, no?

The MTE contracts say the same exact thing, word for word.

Oh, crap, goudah! It says "any" account. Isn't that spiffy? I think I'll change my whole identity. LOL! There's no escaping them!

Tweety - You did the right thing by disputing.

Jen - It's right here:

However, if you timely revoke the authorization to effect ACH debit entries before your loan is paid in full, you authorize Company X to prepare and submit one or more paper checks drawn on your account, or to effect ACH debit entries on any other account found for which you are a signer, on or after the due date of you loan. This authorization may not be revoked by you until such time as the loan is paid in full."

why in the world would you feel guilty. You did what you had to do. You deserve to feel violated for what was done to you. Please tweety, i may not be the smartest person when it comes to these loans, but one thing I know is you should not feel guilty about anything you did

OK, I read it too fast, my bad. Sorry!

Here is the clause from the MTE contract, very similar but not quite the same:

So according to my contract you can revoke authorization to debit the original account, but if you do they will just send a check through, or debit another account you have.

Tweety - I would dispute if it happened to me.

Yes, but only if you send them a check, then they will use that information to debit your account.

Tweety, you totally did the right thing. Don't feel guilty!! These places are wrong and you are right!

Your contract is different Jen. Although they do say that if you send in a check they will put it through as an ACH.

Jen
it says they will PREPARE a chech to be drawn on your account. To me it says that by defaulting on an ach
"you authorize " them to prepare a check . It does not say you need to send them a check.
It says if "you send them' a check it authorizes them to ach your account.
I think i am confused

Kashzan - Yes, that is what it says. I think Jen was just commenting on the part saying that if there is insufficent funds in the account you are responsible for paying them another way, and that if you do send them a check they will use the info to do an ACH.

kash-join the club!

:0)

Hey Jen
It boggles the mind the things these companies do. what is more mind boggling is what they get away with.
Did you happen to read my post regarding the outlandish reply I got from Fast bucks now.
It will give you a good laugh

I did read it, just now actually! The person sounds completely illiterate. And the scary part is that is not the first e-mail I have seen that has been written that way!

I agree with you that it's mind boggling. That's why I say it borders on criminal. They can't just do whatever they want! And it's sad because it seems like there are no real laws governing them, so for the time being, they are getting away with murder!

I'm thinking of doing what Goudah suggested and having my direct deposit split up between accounts, or even better, just not keeping too much $ in the bank at all. It just feels safer to me that way.

Jen - You should do that. I used to be totally dependant on my debit card, I never carried cash. Then the pdl mess started, and the bank ended up freezing my account on a friday night. No access to MY money for 7 weeks! Then I finally got it in a cashiers check. Learned my lesson there!

Yikes! I am the same way Goudah, I use my debit card for EVERYTHING, even my coffee I get before I come into the office. That's going to change!

Goudah
it is a great idea to split it up between several accounts. Unfortunately, I have changed banking info so many times at work that i am ashamed to do it again. The HR guy will kill me. For now I have to believe that my new account is safe.
I want to be able to just relax about this, but it seems that every day new fears keep popping up.
These loans were the worst thing I ever did , and I just keep blaming myself for all the problems i have caused myself

Kash, please don't beat yourself up. We all make mistakes, and we learn from them.

I still get myself all upset sometimes, but let me tell you, finding this site was a true blessing. I felt SO alone before finding everyone here.

You know, it's easy to blame yourself, but at least you are working towards clearing up the problem, and I bet you will never take out another payday loan again.

You should relax about it. I haven't had my accounts hit, and I know a lot of other people that haven't either. I really think you will be safe, and if you do get hit, just dispute it with the bank. But I doubt it will happen.

Thanks Goudah and Jen
Yes i am trying to relax about all of this. I guess that today was just a bad day for me. I have been a bit down because of all of this. At times it does get overwhelming. Tomorrow is another day, and I am sure things will feel better. Yes I know I should not beat myself up, and Ill be damned if I let these pdls beat me up. I am too good for that.

Thats the attitude you need! Believe me, what you are doing can be done, and you live in a state where the laws are good. The first week or two can be tough, but once you start getting results you will be energized and ready to put up a fight!