1 Debt Consolidation Advisor

Receive your Free debt consolidation quote today!

Automatic Debit Scams Continued..

How To Protect Yourself
It can be difficult to detect an automatic debit scam before you suffer financial losses. If you do not know who you're talking to, follow these suggestions to help you avoid becoming a victim:

• Don't give out your checking account number over the phone unless you know the company and understand why the information is necessary.

• If someone says they are taping your call, ask why. Don't be afraid to ask questions.

• Companies do not ask for your bank account information unless you have expressly agreed to this payment method.

IT'S THE LAW: Since December 31, 1995, a seller or telemarketer is required by law to obtain your verifiable authorization to obtain payment from your bank account. That means whoever takes your bank account information over the phone must have your express permission to debit your account, and must use one of three ways to get it. The person must tell you that money will be taken from your bank account. If you authorize payment of money from your bank account, they must then get your written authorization, tape record your authorization, or send you a written confirmation before debiting your bank account. If they tape record your authorization, they must disclose, and you must receive, the following information:

• The date of the demand draft;

• The amount of the draft(s);

• The payor's (who will receive your money) name;

• The number of draft payments (if more than one);

• A telephone number that you can call during normal business hours; and

• The date that you are giving your oral authorization.

If a seller or telemarketer uses written confirmation to verify your authorization, they must give you all the information required for a tape recorded authorization and tell you in the confirmation notice the refund procedure you can use to dispute the accuracy of the confirmation and receive a refund.

What To Do If You Are Victimized
If telemarketers cause money to be taken from your bank account without your knowledge or authorization, they have violated the law. If you receive a written confirmation notice that does not accurately represent your understanding of the sale, follow the refund procedures that should have been provided and request a refund of your money. If you do not receive a refund, it's against the law. If you believe you have been a victim of fraud, contact your bank immediately. Tell the bank that you did not okay the debit and that you want to prevent further debiting. You also should contact your state Attorney General. Depending on the timing and the circumstances, you may be able to get your money back.

Back To Main

Free debt consolidation quote 

[ Home | About Us | Benefits | Financial Health | Questions ]
[ Free Quote | Consumer Info | Contact Us | Sites ]

1 Debt Consolidation Advisor, Inc. All rights reserved, images, text and graphics. 2001

    Credit Cards
    Payday Loans
    Car Title Loans
    Home Equity Loans
    Credit Scoring
    Reverse Mortgages
    Credit Card Costs
    Automatic Debits
    Cosign a Loan

Did you know...

We promote the #1 recommended solution to today's most common credit problems?

Click Here
to get started.