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Unauthorized debit: any advice on what to do now???


kdubbn
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Needed to see if anyone can offer some good advice on what my next step should be. Here's what happened: a few months ago an unauthorized debit of $30 (I know. nothing crazy, but it's now matter of principle) was drafted out of my checking account. So I immediately contacted the bank who had me come down fill out an affidavit stating I didn't authorize this debit and had never heard of nor associated with the company that did it. I also had to change my account number ,order new checks, just the basic things anyone would need to do. Long story short, my bank said that "they would do what they could on the backside of things to go after these people but you;ve done all you can do." Really?

 

So I then I filled a report with BBB in the state this company is supposedly in as well as the state attorney general, and filed a complaint with the Consumer Financial Protection Bureau. Of course I contacted the company multiple times only to be told I had to have done this or they wouldn't have my information. Strange thing is the account number they used was my checking account number not my debit card number, which is what I do use when shopping online. Other than a utility now and then do I ever write paper checks.

 

I doubt there is anything I could do further, but I thought I would ask cause this site has been incredibly helpful with other matters.

 

Thanks in advance

 

Keith

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exactly what type of transaction was this? if you don't know, go back to your bank and get the particulars.

 

 

 

 

DIFFERENCE BETWEEN A PADD , ECK AND EFT.

 

 

PADD

 

A company may create a pre-authorized demand draft (PADD), or check by phone, if authorized by the consumer. See U.C.C. § 3-402(a).

 

With a PADD, the consumer authorizes the company to create a physical check with the consumer’s account information and the company must be able to prove that it received authorization from the consumer. Proof of authorization for a PADD may be established via audio recordings of the telephone communication with the consumer.

 

 

Any transaction that is originated by a check, draft or other paper instrument (such as a PADD) is excluded from the definition of an electronic fund transfer (EFT). However, the Federal Reserve Board amended the regulations to clarify that electronic check conversion (ECK) transactions are covered by Regulation E, as they are deemed not to originate by check.

 

 

 

In ECK transactions, a consumer provides a check to a merchant or other payee which is then used as a source of information to initiate a one-time EFT from the consumer’s account. The payee electronically captures the routing, account and serial numbers from the check and initiates the one-time debit of the consumer’s account.

 

The rules for ECK transactions do not apply to Internet or telephone-initiated transactions. While these transactions do result in the consumer’s account being debited electronically and are subject to Regulation E, they do not involve the conversion of a check into an EFT. The consumer provides the MICR-encoding information from her check via the Internet or telephone in order to make a payment. Merchants and other payees are required to comply with the requirements under Regulation E regarding ECK transactions.

 

Thus, when your company receives the information via phone, the resulting transaction is not an ECK transaction, but it is still governed by Regulation E as an EFT, which will be discussed more in the following sections

 

EFT

 

An electronic fund transfer includes a transfer of funds initiated by telephone. 12 C.F.R. § 1005.3( B).

 

A consumer authorizes a one-time EFT where the consumer receives notice that the transaction will be processed as an EFT and completes the transaction.

 

The model notice that should be given to the consumer is: “When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction.”

 

If a company sets up a series of EFTs, the company must obtain the written authorization from the consumer. 12 C.F.R. § 1005.10( B)

 

After obtaining written authorization, the company must provide the consumer with a copy of the authorization. Id. If the amount varies from EFT to EFT, written notice of the amount and date of the EFT must be sent at least ten days prior to the transfer.

 

 

The FTC recently had an action against a company that was making unauthorized withdrawals

 

it is any one of these? .

 

http://www.ftc.gov/opa/2013/03/aec.shtm

 

 

 

 

 

https://www.ftccomplaintassistant.gov/

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Yes, sorry I forgot to say my bank gave the money back with in a few days. And ICANHASMUNY it would be a PADD Transaction I suppose. A check was produced, well image of one, on my statement but it wasn't authorize by me.

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Yes, sorry I forgot to say my bank gave the money back with in a few days. And ICANHASMUNY it would be a PADD Transaction I suppose. A check was produced, well image of one, on my statement but it wasn't authorize by me.

Did it "look" like your other checks? You know, same design, info, and check number ordering?

 

Is it possible that someone stole one (or more) of your checks?

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Yes, sorry I forgot to say my bank gave the money back with in a few days. And ICANHASMUNY it would be a PADD Transaction I suppose. A check was produced, well image of one, on my statement but it wasn't authorize by me.

Did it "look" like your other checks? You know, same design, info, and check number ordering?

 

Is it possible that someone stole one (or more) of your checks?

No it was definitely not from my check book. The check that hit my account had a completely different look, a check number that was in the 9900's (my personal checks have yet to hit 600...lol) looked to be computer generated, wasn't with my handwriting, and the signature line had a statement that said something to the effect of "signature not required.......via online authorization." I was really surprised that it even cleared but then it dawned on me that's how my utilities payment looks when I do an electronic check. So it was and it wasn't out of the ordinary, if that makes any sense ....lol. .

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