by Marquisse » Wed Feb 03, 2010 09:18:49 AM
"Maybe your lawyer didn't explain it properly. A collection agency is an authorized agent for the creditor or bank. The collection agency works in connection with the bank to remove the money from your account. So its the bank taking the money out, not the agency."
Yup, just had this confirmed by our in-house counsel. BTW, I'm a commercial paralegal with *some* experience in this field.
However, if a defaulted loan/CC is in dispute, they are not supposed to remove funds from your account until the dispute is resolved. Finally, other than in this situation where the bank is your creditor, no creditor may touch your bank account without a judgment. If they do, they've committed an offense.