I got into debt by not being able to make my minimum payments after the credit card companies doubled them in 2005. One of the credit card companies kept calling and asking for my bank account number, so that they could make automatic withdrawals to pay current debts. I authorized this once, but then did not allow them to access my account again.
They continued bombarding me with phone calls and I recently threatened to report them for harassment because of this. Today I logged into my account and found that my account balance was zero. Can they remove all of the money from my account without my permission? Do I have any recourse? Am I still required to pay the rest of my debt to this company since the money in my account didn't cover it?
No, a creditor may not remove your deposited funds without the authority of someone on that account or with the legal authority, such as a court, to do so. This might happen if a judgment was obtained by your creditor.
You should go back to your bank and file a claim. Banking Regulation E protects you against having unauthorized electronic fund transfers come out of your account. Your bank will investigate the claim and determine if any authorization was provided by you. Could the prior authorization have extended forward? That is one thing they'll look at. If they find there was no authorization, they'll ensure you receive your funds. This could take ten business days to a month and a half to complete. Your bank will give you the details.
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No, a creditor may not remove your deposited funds without the authority of someone on that account or with the legal authority, such as a court, to do so. This might happen if a judgment was obtained by your creditor.