Question

Can a collection agency put a hold on your account?

I made payment arrangements with a particular collection agency. I was late with one payment and they put a hold on my checkings and savings account for the total amount of the bill. They refuse to take the hold off or let me continue my arrangements. Now, all of the money in my savings is gone and my direct deposit from my employer is gone and will be until the entire balance is paid off. Was this legal? If not, what should i do?

6 years ago - 9 answers

Best Answer

Chosen by Asker

Unfortunately, it is actually legal for them to do this, once the agency obtains a money judgment from the court. They can freeze your account up to the amount that you are liable for. But you are required to receive a notice of the frozen funds a day or two after that particular action is taken. It is legal for them to notify the bank before they notify you; this is to prevent you from withdrawing all the funds from your accounts before they can access the money in there. It is also required that your rights are included on such notice. The actual amount that can be garnished from your account varies, depending on the state you live in.

Source(s):

6 years ago

Other Answers

you need to call the bank. if it is the bank you use that you owed the money to, then your screwed! if it was an outside account, you have a case. did you sign an agreement for auto withdraw? if not then you need to call the company and talk to a supervisor, immediatly!!

by toni r - 6 years ago

Yes, they can do that because you gave them the ok to pull money out of your account. Have you talked to your bank? It might not be too late to put a stop payment or dispute the items. I will go as far to suggest closing your checking and saving accounts and opening new ones so they don't have the number. I worked at a bank for 4 years and this happens all the time.

D Roberts
answers@robertscredit.com

Source(s)

by Credit Guy - 6 years ago

Did they have a judgment against you? If not, they shouldn't have been able to freeze your account.

Did you give the collection agency access to take the money directly from your bank account? Always a bad idea as they often use that authorization to take everything in the account.

Call your bank and ask why your accounts are frozen. If the collector has a court order, you will just have to pay them off.

by bdancer222 - 6 years ago

STOP YOUR PAYCHECK GOING TO THE BANK.

by Ralph N - 6 years ago

After judgement, in most states, YES it is legal. Sounds like they are setting up a wage garnishment.

by omfgitsrobmoney - 6 years ago

Sorry, yes they can do that.
your Bank can not do anything because you give them authority to do that.
Just open new account in defiant bank so that is not going to happened next time.
They have right to collect there money from any source they can.

by all good - 6 years ago

Credit Guy is correct.

Never EVER give direct control of your bank account to a collection agent! Sadly you are going to pay a big price for that mistake.

Oh sure, you can sue them. But they will simply counter sue you for the debt you owe, and you still end up with no money.

Remember, never truck collection agents!

by Studly - 6 years ago

Once you made an arrangement with somebody like that! Yes, it is legal because you gave them permission to do it. If someone doing that without you knowing it that's ilegal.

by LYN - 6 years ago