Too often, Clark receives calls from listeners who have allowed a company to automatically deduct money from their account each month. Or perhaps they've given their checking account information to a bill collector. Both are a strict no-no, according to the consumer champ.
A recent report in
The Chicago Tribune underscores why doing such a thing is a bad idea.
A health club franchise that had fallen on hard times was dinging the accounts of former members just to have money to keep its doors open.
Some account-holders hadn't been active customers in five years. The parent organization said they wouldn't take responsibility for the actions of a franchise. Worse still, the people affected were not able to get their money back when the franchise did eventually close.
Law enforcement is treating this as a civil action -- not a criminal one. That's completely the opposite of how it should be handled, according to Clark.
There's a larger problem here; the rules on drafting accounts are set up for the benefit of business with zero consumer protections. If you sign up with a new company, be sure they only get your credit card account. That way you can dispute any bogus zombie transactions they may try to pull down the road.
Look through your bank statements and discontinue any automatic drafts that come out of your savings or checking accounts. Take back control of your money!
And when it comes to bill collectors, never give them your checking account number. You may verbally agree on partial payment to settle a debt, and they'll turn around and take extra from your account. Get it in writing first. If you really suspect their honesty, pay by money order or use a separate checking account to settle up.
