How can you secure your bank account?

[j&js 0]

Sorry to start a brand-new thread about banks and legality, but I didn't want to get off topic in Laura and IanM's thread where she's having a serious problem...

Does anyone know if there is a way to get your bank to not deal with scamming third parties?? This seems absolutely ridiculous to me that this can happen to people who have accounts with legitimate banks. This is now the 3rd case I've heard recently where a third party was allowed by a bank to interfere in someone's bank account.

Here' s a summary of my grandfather's story: Had been paying a LifeSupport service every 3 months for a health thing of my grandmother's by sending them a check. Grandma passes away in March, my mother calls and cancels, agrees to pay through March since month already started. In June, the money is taken out of his account by the company with no notice! And the bank let them take the money out although my grandfather NEVER signed anything (and we went back and checked the original contract and all other papers- he never agreed to anything) Lady at the bank felt bad, but couldn't do anything... Eventually, bringing in police and better business bureau, my mom got his money back but it was hard and long. I'm sure they rip off the elderly all the time and get away with it, my grandfather had no idea what was going on.

Finally getting to my point... How is this possible?!? I put my money in the bank assuming that my husband and I are the only ones with access to it. If anybody can send a request to the bank for my money or to freeze my account as long as they put it on pretty letterhead, whats the point of a bank? I might as well keep my money in a pillowcase under the mattress.

Does anyone know the bank's accountability in all this? Or know how to make them at the very least run things by you before letting third parties mess with your account?? Because neither in Laura's fraud story, nor my grandfather's, did the bank seem interested in protecting its customers....

[Nikita2Charles 32]

You have to be careful, what might have happen is the AUTOPAY feature that kick in, once you have it set up with them, it automatically withdraw the money from your account, The sad thing, and tricky I would say it always go to the business advantage not the client, I haven't heard any case where the company send money to a customer account by mistakes.

1) Call the business in Concern take the name of who you talk to,

2) If you have a record of your cancelation or when you last call to cancel the payment, give it to them ask ask them for a refund and to delete your information on their database so you don't get charge again in June, July.

3) Ask your bank to Spot/ Reject any future Payment to that business

[j&js 0]

But shouldn't you be able to say to your bank, reject ANY payments to ANY companies unless you get my permission? Why should they be able to take your money and you can only get it back by fighting it?

Edited July 21, 2006 by j&js

[cajunasian 0]

First, did you contact the bank and informed them to stop payment on this electronic withdrawal?You must remember this is a computer taking to another computer. Most companies will use a clearinghouse to handle electronic withdrawal and it can take 30 to 90 days before they will stop the electronic withdrawal.

From the banks point of view,how many wtihdrawals did this company make? Bank will not start withdrawaing of money from an account beacause someone send a letter to them.For this company to have started withdrawal of money from this account, someone had to gave them the route and account number. Most companies will also require a void check or deposit slip. After the first withdrawal on this account and the main account holder did not inquiry about the withdrawal, the bank assume this is a pre authorized transfer. Some many people are now are using electronic withdrawal for credit cards payments, bills, car payments and etc. I have work for a bank for 10 years now. I tell everyone, freinds and family, CHECK YOUR ACCOUNT AT LEAST 3 TIMES A WEEK.

[Hilarious Clinton 452]

Listening to Dave Ramsey... If you send a company a check (collection agencies are bad about this) they have all the information they need to raid your account. Send them a money order (or similar) instead.

[j&js 0]

First, did you contact the bank and informed them to stop payment on this electronic withdrawal?You must remember this is a computer taking to another computer. Most companies will use a clearinghouse to handle electronic withdrawal and it can take 30 to 90 days before they will stop the electronic withdrawal.

From the banks point of view,how many wtihdrawals did this company make? Bank will not start withdrawaing of money from an account beacause someone send a letter to them.For this company to have started withdrawal of money from this account, someone had to gave them the route and account number. Most companies will also require a void check or deposit slip. After the first withdrawal on this account and the main account holder did not inquiry about the withdrawal, the bank assume this is a pre authorized transfer. Some many people are now are using electronic withdrawal for credit cards payments, bills, car payments and etc. I have work for a bank for 10 years now. I tell everyone, freinds and family, CHECK YOUR ACCOUNT AT LEAST 3 TIMES A WEEK.

We ended up getting the money back that time, I am now looking more for prevention in the future. You said 30 to 90 days before they stop the electronic withdrawal. Does that mean before they stop it from happening again, or the initial withdrawal? Do you know why it takes so long? In this world of instant access that seems crazy to me...

[cajunasian 0]

First, did you contact the bank and informed them to stop payment on this electronic withdrawal?You must remember this is a computer taking to another computer. Most companies will use a clearinghouse to handle electronic withdrawal and it can take 30 to 90 days before they will stop the electronic withdrawal.

From the banks point of view,how many wtihdrawals did this company make? Bank will not start withdrawaing of money from an account beacause someone send a letter to them.For this company to have started withdrawal of money from this account, someone had to gave them the route and account number. Most companies will also require a void check or deposit slip. After the first withdrawal on this account and the main account holder did not inquiry about the withdrawal, the bank assume this is a pre authorized transfer. Some many people are now are using electronic withdrawal for credit cards payments, bills, car payments and etc. I have work for a bank for 10 years now. I tell everyone, freinds and family, CHECK YOUR ACCOUNT AT LEAST 3 TIMES A WEEK.

We ended up getting the money back that time, I am now looking more for prevention in the future. You said 30 to 90 days before they stop the electronic withdrawal. Does that mean before they stop it from happening again, or the initial withdrawal? Do you know why it takes so long? In this world of instant access that seems crazy to me...

It depends on the company. Like I said some company use a clearing house and some have in house to handle electronic withdrawals. Example, let say you have a alarm system with xyz alarm company. You approve xyz alarm company to take out $20 a month. After 5 or 6 month you decide you no longer want to use their services. You call them, by the way always send a letter and keep a copy stating you no longer want them to take money out of your account. XYZ alarm company send a memo to their in house people, usually account receivable, to tell them you no longer what to use their service. Honestly this memo will probably sit on someone desk for 3 to 4 days or longer before they act on it. If XYZ,has people in house to handle electronic withdrawals, they will send a memo to the in house people to stop on the next billing cycle. If XYZ doesn't have in house people but they will send a request to the clearing house to stop withdrawal from your account. This can take anywhere for 15 to 30 days before the clearing house removes your account number for their data base of electronic withdrawal.