Collection agency will only take payment from my checking account, and wants account number and routing

[fxtalon]

I was able to make payment arrangements for a debt before a collection agency sued me. Literally they have filed the suit and once I made payment arrangements, they then filed a petition with the court to wait 60 days to seed if I make payment. The payment is broken up into 4 payments. 

 

In order to make payment, they demand my checking account number and routing number to my checking account.  They refuse debit cards 100 % and say the will only accept payment through my checking account and an echeck. 

 

First, I don't want them to have ANY direct access to my checking account. Not because I am going to skip paying, but because I think it they have no business have access to my checking account at all. 

 

So, my questions is this actually safe for them to have this access, as long as I pay as agreed?

 

After the last couple of years, I am credit challenged so being able to open up another account for this is going to difficult. First payment is due in 5 days. I made arrangements a couple of days ago, late in the afternoon on Friday, so have not had any opportunity to open another account for this.

[TheVig]

No way in hell would they get access to my checking account. 
 

Opening another account at ANOTHER bank to just park enough money for them to take would be a better option. However it sounds like that may be difficult for you to do. 
 

Hopefully others will chime in on options. 
 

 

[fxtalon]

I don't trust them at all. I will need to take a day off work to drive to the only place I can find that may accept me for an account. But it's better than them having access to my regular account. 

Thanks!

[cv91915]

There are thousands of places to get a free checking account without leaving the house.  

 

If you've decided to settle this, open one and deposit exactly the amount you've committed to pay before each installment is scheduled to be deducted.  

 

Pad it by $10 to prevent an overdraft.  

 

When the final payment is deducted, promptly close the account.

 

 

 

Edited July 18, 2021 by cv91915

[fxtalon]

They want me to use an actual check from the checking account to pay them. So they want a check number, the account number, and the routing number. They say on their site that they retain the checking account number and the routing number. 

To my knowledge, yes I can open an account online, but does that give me actual checks so I can give them an exact check number? No. It will take over a week for an online bank to get me those checks in the mail. I am not looking to complicate this process. 

I found a credit union that will take immediate deposit, give me a few physical checks, and I can work from there.  

Please re read my initial post about the 4 or so business day time limit I have before the first payment has to be made. It's not sensible to open up an online checking account that will take days to deposit funds and is unlikely to put actual checks with individual check numbers into my hands. 

If you know one, tell me. I already have Chime, but I rarely use actual physical checks for anything, so never thought to order any. I am looking for functional advice  due to the time limit. 

 

[tmcgill]

NEVER give your routing and account number! There isn't enough space to post the horror stories I've seen through the years.

***You can try Chime or Cash App accounts. They both offer routing and account numbers with their cards. Also, ask your current bank if they offer temporary processing numbers or second accounts not linked to your primary.

[fxtalon]

Thanks tmcgill! I will definitely check with my own credit union about a second account.

[Kimmygirl]

If you have a chime account, they can give you a Cashier's  check, they will probably also let you just give any Check number.  Also for any regular bank and possibly credit union account, you can make up ANY check number for an echeck.  It doesn't matter. I know this because I have done it before.  You can probably do this for Chime as well. I would NEVER give a collection agency my primary checking account number. Don't fall for this bs. If they want to insist on this, tell them you'll send them a cashier's check.  Any collection agency that won't take a cashier's check, must not want to get paid.  If a collection agency told me this, I'd send a cashier's check certified mail, so you have a way to track that they received a payment that you can show proof if necessary. My boyfriend used to be a manager at a Collection Agency, he said they will take payment any way you say, they just have you running scared! 

[centex]

Concurring with the cashier's check option.  Don't ask if they will accept it...send it to the designated address.  You WANT them to have to take a step to return it if they won't accept it as it then becomes one of your exhibits and arguments before the Court that evidences your good-faith effort to pay the amount in question.

[StarkRaven$]

4 hours ago, centex said:

Concurring with the cashier's check option.  Don't ask if they will accept it...send it to the designated address.  You WANT them to have to take a step to return it if they won't accept it as it then becomes one of your exhibits and arguments before the Court that evidences your good-faith effort to pay the amount in question.

Such a great response. So glad to read it.

[Sidewinder]

On 7/18/2021 at 7:47 AM, fxtalon said:

They want me to use an actual check from the checking account to pay them. So they want a check number, the account number, and the routing number. They say on their site that they retain the checking account number and the routing number. To my knowledge, yes I can open an account online, but does that give me actual checks so I can give them an exact check number? No.

 

 

"No" as in no problem. 

 

Use the routing number and account number from the online bank, and the check number is 1001.

 

(Also good: 1002, 1005, 1124, or 1083.)

Edited July 20, 2021 by Sidewinder

[roundaboutrain]

That sounds uber shady to me that they are demanding the checking acct info. Money should be money to them - whether personal check (clearly avoid from your primary checking acct, as all others are saying), cashiers check, money order, etc. Your agreement should have been to pay, not to give them a way to take out whatever other money they may decide to try.

 

Also, wanted to agree with the poster who mentioned using online banking. You can open a bank online and then with a lot of them, setup a bill pay to that company. The bank will send a check for you in the amount you specify with your (new) acct/routing numbers, etc and many allow you to specify the starting check number. You don't even have to pay the postage. Sometimes they may even have electronic checking setup, depending on the size of the bank and the company you're dealing with (though I'm guessing doubtful on that last part). Or, at least that's how it works for us. They send a physical check for you and it's cashed/deposited like any check with no additional waiting for checks to be printed. Just a thought. 

 

If you don't have time for doing that, given your time constraints, the cashier's check suggestions above are genius. I think it would be hard for the court to side with them (should they press it) if you've made the payments and they have the cashier's check in hand.

 

Good luck. Sorry it's been hard lately.

[fxtalon]

I opened another checking account with my credit union. That keeps things separate unless I default on the payment agreement. 

I worked out with their rep to pay 150 almost immediately, then 225 until it was paid off. 

A week or so later, they sent me a letter, backdated 10 days, saying I had not fulfilled the agreed upon payment. By that time I had made the 150 payment, and the 225 payment. 

They also indicated to me that they had sent the court legal documents for me to sign, basically making it so they don't have to go to court and legally win the suit, and that I had FAILED to return them in a timely manner. If I didn't do what they wanted, they would continue their lawsuit. 

So I called up the company again, and spoke to their rep. The guy said I had an agreement to pay 150 a month, and then a larger final amount, but apparently I was actually supposed to pay 280 for the second payment. Which is completely nonsensical. 

I said I had not gotten their legal paperwork, and to please resend. He said he would do that. Also, he decided, I only have to pay 225 a month. 

Alrighty. The legal papers came, with an outline that I am only suppose to pay the 150 a month. 

I am not terribly clever with disputes and while the demand and lawsuit for payment comes at a terrible time, I fully intend to make the payment. 

I signed their legal papers so they could win their case ( snark) and sent it back to them. I am just going to pay this as fast as I can and that should be finished in the next 6 weeks. 

 

Also, they sent me payment coupons and envelopes with the legal paperwork to make the payments. So if I had defied the original insistence of their original rep to make the 150 payment almost immediately, the coupons would have allowed cashiers checks to be sent. 

 

Beyond that, this company seems ridiculously disorganized. 

[centex]

A stipulated judgment is STILL a judgment. 

[fxtalon]

4 hours ago, centex said:

A stipulated judgment is STILL a judgment. 

 

Yes, I caught onto that. I had considered ignoring them on signing their agreement. I didn't think I could pay the amount off before it would actually hit court. 

Was there something else I SHOULD have done? 

Or were you taking exception to the possibility I was thinking I got away with something, when in fact I didn't? Thanks.

[centex]

If you were in a payment arrangement, it would likely never have seen a trial docket.  A continuance would have been granted in a pending case until such time as you either completed the arrangement or you defaulted on the arrangement.  The key would be staying in communication with opposing counsel...