Bank Account being cleaned out

Urgent need of advice.

Looking at my bank statements, my account has been cleaned out twice this month! totalling to abt $1500  The money is being withdrawn via Inter branch banking (whatever that means) after my company has direct-deposited the money I earned to my account.

    Today, I have gone to my main bank branch to find out who authorized this and where the funds are heading to.  They had no answers except that they would run a trace on it and get back to me in 48 hours.

My Question is: Can collection agencies just start yanking money out of your account without your permission or to give you notices/warnings?

I went through a hectic couple of years and I am still recovering from it.  I still owe one credit card and my student loan which I suspect has taken this action of garnishing my bank account.

Furthermore, I have read many articles, including this site, of similar situations and so far I gather that all of them got a notice of the garnishment. 

Thanks in advance 

Wow.... really!?  That's Crazy!!!

The original loan is from the same bank account however yesterday. they said that a third party is doing this not them.  I suspect that they are using the same channels to get at my money though.  To get this judgement, I would have thought they would need to take me to court or something.  Can not even defend myself.

Lucky my mortgage is being dealt in a separate (joint) account or I would be really screwed. 

What did your husband do after or during the process of getting the money back?  Can we sue them or something?  It all seems illegal when they are draining my account to the balance of 0.

I am probably just gonna switch the bank account although it would be a big hassle.  Lots of prepayment plans.

Just when you think the banks are safe

snogard

with my hubby it was a clear case of fraud - an email money transfer he never authorized to a website we'd never visited.  we called the bank hours after it happened, they started an investigation right away, the rcmp got involved as well.  hubby was not the only victim and the guy who screwed us ( thank god for overdraft protection) was arrested.  the bank apologised, credited us our overdraft fees and changed their security requirements for email tranfers.  but it wasn't the bank's fault - they were hacked.

legal ?  read the fine print on your student loan papers.  you entered a contract with the bank agreeing to pay them.  sure it woud be nice to b told in advance they were going to help themselves, but hey, would you have given them the money willingly ?

the hassle of changing accounts is nothing compared to the service charges of bouncing ar rent check or the inconvenience of having no money for groceries etc.  if they want your money make them work for it.

Thanks for the advice guys. 

Now that my credit is ruined.  Will it be difficult for me to open a bank account? or is that not affected?

Actually over the last several years there has been a trend in banking to run a credit check on new applicants. If there is adverse information and no potential to develop a relationship, many institutions will now decline to open an account. Often what happens now is that financial institutions will identify other financial institutions that will take such applicants and refer them there.

Suspected as much.  Thanks for the posts.

Soon enough I got to read up on repairing my credit. 

So frustrating.

I had a credit card that I never missed a payment for almost 3 years and now they will not renew my card. 

Any banks with good reputations out there?  I hear Ing Direct is good.  Anyone have any opinions?

Hubby and I went to Canada Trust to open a savings account for our wedding. My parents have always dealt with them and they've been good. Hubby and I typically deal with RBC.

At CT, we were told that Hubby could have a bank card, but that he could not withdraw from the machine. His credit was shot because of a collection agency issue with a credit card about 6 years ago. CT was happy to open an account for us, but they put limits on the amount that *I* could withdraw, and they refused to allow him to withdraw through the machine at all.

Needless to say, we stopped using the CT account after the wedding.

ing has great interest accounts for savings and has good service for inquiries into personal loans etc.  but yes you still ned a 'traditional' account for the money to be transferred from.  i would recommend a credit union.

with credit cards, just making your payments isn't always good enough.  if you are just paying the minimum on a maxed out balance they may or may not renew if your credit report is suspect.  but if you carry a balance for a few months and pay it off, or make double your monthly payments here and there it shows the lender that you are 'more responsible' and trying to keep your debt minimal ( sorry, can't think of what exactly i want to say, that's pretty close though).  those types of borrowers are the ones who get their credit limits increased without asking (even with a blemish or two on the old credit report)

now, if your credit card is issued by the bank your student loans are with, then them not renewing is no big suprise - they want you to pay one of your debts so they can try and collect on the other.

your credit may not necessarily be shot - request a copy of yor credit report and see if there's anything on there that isn't right.  if there are discrepencies get them corrected.  if your CR isn't a bed of roses, don't sweat it, time heals all wounds.  sure it will take 6 years for an oopsie to disappear off your CR but it will go away and you have that time to start an rsp, an investment portfolio, a kick ass savings account.  maybe you'll be lucky and settle your debts and be free and clear - but if you settle make sure the debt gets erased on your CR as well and get everything in writing.  if you are working make an effort to correct those outstanding debts and be more cautious in the future. 

just my two cents

President's Choice? That's just part of the CIBC, isn't it?

*shudder*

Poly