Should I pay a collection agency with my bank visa card number?

Question

Could they find a way to take more from my account than I authorize? Are there effective measures in place to protect consumers who want this convenience? Does my bank card number give them any more information than a check would?

Answer 1

the thing is if they take out more then they are supposed to, you dispute the charges. If it is a checking account, your bank will have you fill out a legally binding form that states you did not authorize that amount, it is your word against theirs and your bank will either reverse the funds or they will go after that company.

It happened to me, something I paid came out twice days apart, I went to bank, filled out the form and then got my $$ back. Good luck to you

Answer 2

Why? Use a money order to pay it and keep a copy of it. Never give a credit card # to collectors. They are liars and will tell you anyhting to get their money. Watch your own back.

Answer 3

i work at a collection agency and paying with your card is fine. we do not do anything with your card or numbers. That is against the law!

Answer 4

If they send something in the mail, you may also consider paying by money order or cashier's check. I once authorized a $500 payment for American Education Services and they attempted to withdraw $2,000 from my account.

While some collection agencies are sincerely trying to help consumers, there are other who are not. Remember that a collection agency has purchased your debt. The original creditor attempts to collect. Once it goes into collections, it is purchased by a third-party company for pennies on the dollar. They make money when you PAY... a lot of money.

If your account has not been in collections too long or is not charged off, I would suggest contact the original creditor and make payment arrangements instead.

Answer 5

I once had a collection agency take more out...they took out what I authorized for the first month, then they took out the rest the next month. Luckily, I had more than enough money in the bank, but I don't do that again.

If you do it, have them send you a bill. Don't do it over the phone. You don't know who is listening.

Answer 6

It's completely safe to use a credit card, infact its safer then using a check or sending a money order. For one if any problems arise its easy to charge it back on the credit card. With a money order it could take up to 6months to track.

Answer 7

Don't do it.....for sooooo many reasons!

You never, EVER give a creditor access to you bank account or credit accounts.  You can never trust them.  Of course they will take out more then you authorize!  What are you going to do .....sue them?  They just counter sue and you lose it anyway.  Very bad idea.

And it's never wise to pay a debt by opening up another debt.  

Send them a money order.  Yes it will cost you a stamp and you will have to trot down to the store a few times a year....but you won't regret it.

Answer 8

NO! Never, ever give debt collectors your bank account numbers...This is like giving keys to your front door to a total stranger. Once they have this info there's nothing to stop them from taking our more than you authorized. This can lead to huge bounced check fees.

Pay only via USPS money order. The debt collector waited months (or even years) for your payment...they can wait an extra three days for your money order to arrive by mail. Send them a settlement letter via Certified Mail + Return Receipt stating the exact amount to be paid and confirmation that the account will be paid in full upon receipt of this amount.  If they threaten to sue you because you didn't give them your bank info, tell them that you've officially documented that they have refused to accept your money order payment and that you'll submit this as evidence in any legal proceedings.

According to Budhibbs.com - if you give out your checking account # to debt collectors and they take out more than you authorized, it's almost impossible to get the money back.