Bank Draft Payments

[cinch]

Does a company or business not have to have permission to draft on a person's bank account?

Recently my Mother has had 2 different places draft on her account. The first one is her morgage company. For 15 years she has mailed her payments. In July she mailed her payment and by August not only had they cashed the check they also drafted, so she made 2 payments in July. This should have covered August's payment. But she still got a monthly bill for August. Before she could make August payment they drafted yet again. This means they got 3 payments in a 30 day period.

Second company is a unknown company. They drafted twice in the same day for $49.99. We contacted the bank and all they could give us is a phone number. They have no idea who they gave the money to.
We called the phone number and still got no name for the company but the lady said they would mail out a refund check. So far no check has arrived.

I have gone to the bank and they tell me anyone that has the account number can draft and they can not prevent it. That does not sound right to me. Do banks not protect their customers?

We can't afford this. I have already contacted the mortgage company and told them to stop this draft. enforced the fact that they DO NOT have the athority to do this.
I also contacted the unknown company and told them I was reporting them to our Attorney General for thieft. But when I did I was told the bank should have reversed the charges, they have to know where they sent the money to.

Things like this are going to get worse and if your bank won't help you what can you do? I work at a retail store and we've had a huge increase in fake checks.

[mart]

No, the mortgage company cannot draft on her account without a signed authorization from her !! Tell the mortgage company that you want a copy of the authorization with the signature so you can match it !! The bank would also have one !! How did they know to draft ?? They normally just don`t pull it out of thin air !!
As for the other one,, they have been doing stuff like that a while !! For instance,, a company sends you something about a free book and you send for it because its free you just have to pay shipping and handling !! But the fine print says that by taking it you also agree to become a club member with dues that are drafted from your account !! You paid shipping and handling for the freebie with a check so they have your account number !! Instantly done !! You need to get details on all these transactions !! Starting with the $49.95 charge,, find out what it was for and whose address is on it !!

[My Ladyhawke]

Sounds like some serious fraud. Your mother needs to close account and open new one. The bank should be more than willing to work with her and have to pay back any amount not authorized. Best of luck.

[Equinemom]

I agree with both previous posts. Ask for the authorized signature/paperwork that allowed the drafts and if this is fraud, I hope the bank works with you to get your $$ back. If it stilll is in question, close the acct and open a new one.

[cinch]

No there is no signed authorization for mortgage company. There was also no club thing on the $49.95 (which was done twice on the same day).
Bank claims to have no information on who they sent the money to. They also told me they have to pay any drafts, saying if someone has your account number that gives them permission.
I'm not buying that. I find it hard to believe that anyone with a account number can take money out of someone's account.

[mart]

If the bank has no record ,,how does it wind up on your bank statement at the end of the month ?? They have records !!! They have no choice !! Go there Tuesday morning with your mother and get them to pull up all transactions so far,,everything that has happened on that account !! Sit down with the bookeeper and see who authorized the draft !! The club thing was just an example of how it can be done !! Not saying that is it !!Go through your mothers checkbook and see if there is anything questionable in it !! It is against banking regulations to draft without an authorization !! If it could be done legally,,anyone that was late on a payment of any kind could have one drawn out of their account without their knowledge !! Could someone have taken checks from your mother without her knowing it ??
If so they would have the account number !! It honestly sounds more like a bank screw up !! Call the state banking commission !!

[westmar]

Contact an Attorney. You are getting your chain yanked and stolen from! There does NOT have to be an authorization form that is signed in my State of Montana, however, if I have a questionable draft I report it to the Bank, I put a stop to that 'draft' and the Bank will no longer honor their draft requests.
It would be worth hiring an Attorney to stop this and do report the bank as well.

[cinch]

The unauthorized drafts to the mortgage company stated who it went to. We have talked to them and informed them that they had no authorization to continue to do this. We will see what happens.

But the 2 drafts for the two 49.95 charges had no company listed. Only the phone number that the bank gave us. We've called this number several times insisting they return the stolen money. They keep saying they will mail a check and we never get it.

[moodygirl]

Did the bank say they stop any more drafts from that fraudulent company? If not I'd open a new acct. ASAP. I'd also call the Attorney General's Office re: fraudulent company. They may have the power to find out who has that phone number. I'd call and see what they say. They should have a huge dept. on identity theft.

[4jpainthorses]

I had this happen to me on my debit card and all I had to do was go down to the bank and file a dispute form on the account and the bank returned my money. I also got a new debit card and destroyed that one. To be on the safe side, your mother needs to close that account and open a new one or better yet, open one at a different bank.