Can a private business you owe money to take it right out of your bank account?

Question

A private business got a court order to take 600.00 I owe them right out of my bank account. How? Wish I could do the same as a private business owner. Where are we living.....Bagdad. Spoke with FDIC and they couldn't help. Anyone have any ideas how this is done? Thanks

Answer 1

If this business has a judgment against you they can file a garnishment with your bank.  You can do the same thing, you just have to get a judgment from a court.

Answer 2

Its called a garnishment, although it is not coming out of your paycheck, through court order it probably went into collections

Answer 3

I don't think so, but consult an attorney or your banker

Answer 4

They must have sued you and obtained a judgment against you, and levied a writ of execution to take the funds in (partial) satisfaction of the judgment.

Answer 5

SOUNDS LIKE A SCAM!!!!

Answer 6

~~If a judgement is won in court then the plaintiff can place a lien on your checking account to get the money the judgement is for. It's the only recourse someone who is entitled to the money has if you won't pay.~~

Answer 7

How would a private business (unless you worked for them and had direct deposit) have your bank account number to begin with?  There's a privacy issue right there!  Also, if a court decided that, you would have had to be notified (unless it's the IRS or some other government agency taking the money) of the courts decision so that you could take proper recourse.  If you don't actually owe the money, now you have to go through small claims courts to RECLAIM what was taken from you.

Good Luck!

Answer 8

If they have a court judgment, yes.  They can garnish your accounts or paycheck.

Answer 9

Because they got a court order to garnish your account for the debt owed.  Happens quite a bit actually.

Answer 10

First of all make sure they're a company practicing legally in the US. Contact you local Atty Gen's office (or something like that) and ask. If you gave them permission to debit your account and they have your info, they will attempt every chance they get to debit your account for the amount you verified to them or gave them permission to take. If I were you, I'd call your bank and put a stop-payment for now. Any legit company should take a payment by mail.

Answer 11

It can be done through the courts. You were mailed several letters from the court, stating each step of the process. You obviously ignored them all, so the action was taken. Next time either pay your bills, or respond to the court's request.