Most individuals think that a bank is the safest place to keep their money. However, in some cases, a company can reach into your account and take out some cash without your permission. While not all companies have these powers, in some circumstances your financial institution is left without an option but to comply.
When you stop paying your credit cards, the first step is for the company to send you some collection letters or call. These letters and calls get increasingly aggressive as well as nasty as the time goes by. The company will even threaten to arrest you if you do not pay your debt, which isn’t true and violates the current law.
You will have the opportunity to defend yourself, however, if you owe the cash, there are no chances of winning the suit, and the company will obtain a judgment against you. In most cases, the judgment is powerful since it allows the company to take your cash from the bank without your authorization.
Although the current law allows the credit card companies to access your bank accounts in some situations, they cannot touch your account without the express authorization from you. If they take your cash, you have the legal protection against losses if you report the activity within the first 60 days. The bank will have to conduct a thorough investigation and replace the illegally withdrawn funds.
If you make any payments with your current debit card or other forms of electronic transactions, you grant the credit card company the authority to withdraw money from your account. Electronic thieves or unscrupulous creditors can use the information to withdraw more funds than they should. Since the law protects you from loss of the unauthorized transactions and identity theft, you can report the activities in a timely way. Having the information is a way in which some people can gain access to your account.