Collection agency has access to my bank account...will it end?

Question

I ignored ALL phone calls, registered mail (didn't pick it up), court notices/dates...now they have access to my bank account! So I guess I should have fought it when I had a chance. Is it too late to ask for settlements or now that they can go in my account and take what I have, would they rather keep it that way (even though of the $108 I had in there, my bank kept $75 for fees and the collector gets the $30-something leftover--so it isn't much and now I know not to put more than $70 in it)??? I can't afford to have my money taken since I am a student with VERY limited income OR to lose use of my account of 15 yrs that I use to make electronic payments for my bills...credit is SHOT at this point so I can't even get another checking account--which they would just find later anyway---anyone know how to deal with this? (BTW, if I could afford to pay the debt, I would have---I was in a position to afford it when I spent it, things happen, no longer in a good position and the original debt has pretty much tripled with fees $4500)...probably a couple more judgements to follow from others :o(

Answer 1

If the collection agency is using your debit card to collect, you can call your bank and file a claim.  No merchant is allowed to use a debit card as a means of collections, they are violating Visa rulesa and regulations.  Your bank will usually give you a provisional credit while they investigate it.  If all else fails, just close your account or your debit card.

Answer 2

Call the collection agency and see if they are willing to work out a payment plan. It is really all you can do, you ignored all the warnings and ways to get out of this debt, you deserve what you are getting now, maybe in the future you will act like an adult and spend what you can afford. It is total c**p that you say you could afford it when you spent it because if you could you would have paid it then.  

Answer 3

Next time approach it like an adult.  Ignoring debt does not make it go away.  I hope you correct your credit at some point and have learned a very valuable lesson.

EDIT: not trying to talk down to you, just have been in the exact same position, and I can tell you it sucks.  It took me a few years of working hard, spending less, and learning to manage my money for me to get in a good place now.  You can too, just start today.

Answer 4

This is my advice to you. I've been through this.  I did the same thing then I realized that the best thing to do is to take responsibility for what has occured. Contact the collection agency.  Write them a letter that details how much money you have coming in every month and how much money you have going out in bills.  Apologize for not taking care of it sooner and let them know you would like to make some type of payment arrangement with them.  Most of the time you will be able to talk to someone that is willing to help you, and 9 times out of 10 once you actually talk to them they will remove all incrued interest and try to help you as much as possible.  Next time-DO NOT IGNORE THEM.  It only makes things worse.  

Answer 5

I would check around  and see if there are any banks that offer a  second chance checking account..if that doesn't work then get a prepaid credit card and use that to pay your electronic bills..then start saving  some money and  try paying off the debt, or call them and see if there is any arrangements  that can be set up, most collection agencies will work with you , they just want their money and would look better on your case if you stand  up and face it than trying to run from it...unfortunately   bill collectors are known for their tenacity.

Answer 6

You did lose your bargaining power by being evasive. Had you even bothered to show up at court they wouldn't have given you a judgement by default. Especially being a student you could have stated your claim and settled for a lesser amount. No use crying over spilt milk!

They're gonna keep dipping in your account until the debt is cleared.

You can get another bank account, you'll just have to get a savings account and decline a credit check. This means you won't be able to get any access to deposited items like checks until the holds come off. Holds are usually 5-10 business days but hey you'lll  have some money.

Answer 7

CLOSE THE ACCOUNT!. You can pay your bills with Money orders if you have to. Call a free credit bureau to help you. They may be able to help you  eliminate some of the fees.  Investigate bankruptcy it may make them leave you alone and eliminate the debt or put you on a reaasonable payment schedule.

Those guys are Pirates and the less you cvan legally give them the better.

Answer 8

Stop putting any money into that account. I wouldn't even close it, just get anything you can out of it and then abandon it.

I don't understand why you can't open another checking account at another bank or better yet, credit union? Or what about a savings account? Can you get someone to open an account in their name and put you as an authorized user? You supply the money, but it would be hard for the collectors to trace. You'd have to be very careful with it, because the other person's name is on it and you wouldn't want to damage their credit. Not sure it'd even work with today's laws, but you can ask.

I'd also talk to your bank (not the teller, talk to a manager) and ask if there's any way the bank can help. If you have any income, they may be able to give you a loan. At least they may have some advice.