Is It Legal For A Company To Pull All Your Money From Your Bank Account Without Notifying You First.?

1. Wolf Harper Says

   Depends.
   They got a court judgment. He had lots of notice about that. Next the company would have to go to the court and get specific permission to take out of that account. They might not need to give him notice of that, it depends on state court rules.
   OR, the creditor might be the same as the bank. If you default on a USBank credit card, they can often take money directly out of your USbank account because they put that in your agreement.
   Third – the company can break the rules and do an unauthorized EFT transfer without court permission. As you might gather, this is illegal, and you can and should go to the bank and get the charge reversed.
   Plans for the future: Stop leaving money lying around! They can take money in your bank account. But they can’t take money from a bill you already paid. In other words, settle up with your current creditors before leaving money lying around for past creditors to take. You can also use your utility accounts to store small amounts of money. Got a $50 electric bill? Send them $200 and you are paid up for 4 months, and the creditor would never think to look there. That credit balance is your money. You can ask for it back (but most likely you will use electricity so why bother.)
   If your rent is $1000, and you pay it on the 15th of the month before rather than the 5th of the month, that’s 20 days where your $1000 is protected from being taken. Etc.
   For more on this, look into books on filing bankruptcy – they list what assets are protected from creditors and what are not. And also look at books on “asset protection” – which is how you place your assets so they can’t be taken by lawsuit judgments.

2. Wolf Harper Says

   Because of “an old debt”? In other words you don’t pay your bills and the company that you owe money to put a lien on your bank account. If you had paid your bills your money would be in your account.
   So you think that they should notify you first? So you can run to the bank and withdraw all of your money? That would be like the repo man calling you that he was going to repossess your car tomorrow.
   The answer is to pay your debts because the company that you screwed over would go out of business if everyone was like you.

3. Jay Says

   Where do you live? In the United States, it’s perfectly legal to do this but not without a court order. Notification depends on state law. Where I live, the bank has to mail a one day notice. However, the notice often arrives after the money has been taken. He had to have been sued for this debt at some point and ignored it for this to happen (again, at least in the states).
   And, whoever levied his bank account can do this over and over (other than $100 which has to be left untouched) until the amount of the debt is satisfied.

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