Help! Can DISH take money from checking account?

[diyguy]

I have a friend who was making check payments on her roommate's DISH Network account. Well, her roommate moved out and my friend cancelled the service on her behalf.

Now there is a billing problem which my friend is not obligated to pay since it wasn't her account.

However, she is worried that since DISH Network converts check payments into electronic debit transactions that they will just "debit" the overdue balance from her checking account even without a signed paper check in their hands and even though it's not her DISH Network account.

Is it possible that they could take the money from my friend's checking account this way? Your fast replies will be appreciated!

 

[SatinKzo]

AFAIK, this is a state issue. In Michigan, I know for past due claims, they have allowed companies to come after the person responsible for the debt and hit any bank account held in the state. Usually this is for alimony and child support, but I have actually read reports of it being for simple utility bills too. So the big warning in the state now is in respect to estate planning for parents "Don't put your kids on your accounts cause if they become past-due, they can take money from that account if collections gets approval"

I don't think dish can go after it until at least 60 days past due, then collections gets involved. I still wouldn't think it would be for anyones account other than the account's registered owner.

if they did debit her account without written approval (a check) then I would say she has some legal ground to stand on.

Although, you mention that your friend cancelled the account on her behalf, so in essence, she committed fraud by impersonating her old roommate. I know she probably had her roommates permission and such, but why couldn't her roommate call and cancel it herself? I assume dish asked for some personal info to confirm cancellation etc and she had it since her friend gave it to her, but seems kinda odd.

 

[diyguy]

I still wouldn't think it would be for anyones account other than the account's registered owner.

Well, that's what I thought too until I read about Victoria Farrell who had made a couple of debit card payments for her friend, Carmen. DISH then came after Victoria's debit card for past due amounts owed by Carmen. And DISH claimed it was all legal!

P.S. This forum won't let me post the URL to the above story until I've made 5 posts! ROTFLOL!!!

 

[SatinKzo]

Wow, that would be an intersting precedence if taken to court. Did it go to court? I can claim anything is legal, but I think a judge/jury needs to address that.

 

[Mr Tony]

P.S. This forum won't let me post the URL to the above story until I've made 5 posts! ROTFLOL!!!

reason being was too many spammers

 

[GaryPen]

http://www.complaints.com/march2003/complaintoftheday.march21.17.htm

 

[SatinKzo]

The only difference I am seeing is they used a debit/credit card and this OP is talking about a check. Yeah, I know e-check's etc, but a debit/check card is different obviously. I still say if this happens, take them to court as it is not an authorized charge.

I am not any authority on interstate commerce etc, but I believe the laws of your state apply just as credit card terms and conditions can be superceded by state laws.

 

[ken0042]

I'm not sure how it works in the States (I'm Canadian) but can't your friend put a stop payment on her account? I had to do that once after a dispute with another company, and it only cost me $10.

Better than having $200 shoot out of their account.

 

[SatinKzo]

Stop payment to me is telling the bank not to honor a check I wrote, not a potential ACH charge initiated by the biller.

I guess it could get interesting if they do charge that bank account.

 

[jpezz]

I believe the law on direct withdrawals is that there must be a signed authorization and if a bank allows it, you can demand that the bank prove to you that the signed authorization exists.

Some banks try to convince you to prove the opposite but I believe that federal law and/or Automated Clearing House rules makes the banks responsible.

Tell your friend to talk to the bank BEFORE it becomes an issue.

JohnP

 

[SatinKzo]

jpezz... That's Exactly how I interpret the way a ACH from a checking or savings account is handled or should be handled by a bank. Check with a bank rep or call them and see what they say. I just can't believe they can authorize a check withdrawl without approval and past use of checks should not constitute further approval. Heck if that were the case, everyone I ever wrote a check too would have drained my account by now. I guess I would liken checks to one-time use CC numbers now. One use, set amount.

CC/Debit (as in the posted story) are another story as by giving them the number and such, you have authorized the use of it and there may be a clause with dish that says dish can try any number on file if one is denied (due to over limit or expiration).

Let us know what you find out.

 

[JKeats]

unless there's something in the contract we all sign authorizing withdrawls, she should be safe.

if it's just a matter of them trying to use an old check to get to your account and post a transaction, they can't do that. i doubt they would try. the way business deal with billing disputes seems pretty universal. they'll send her (or whomever) to a collections agency.

as a side note, you'll notice on direct deposite authorization forms (for your work or whatever) that if you read the small print you're also authorizing them to pull money out in the event of an "error". this is why i have, and suggest to all my friends that they do the same, a checking account that you keep no money in and have removed overdraft-protection. this way once money is transfered into it, you transfer it to another account and if an attempt is made to pull money back out of said account by someone else, they'll simply get a denial or an insufficient funds error.

at any rate, good luck.

 

[BobMurdoch]

Another reason why debit cards should never be used. Credit cards are the only way to go (assuming you have decent enough credit to qualify). If they try anything funny, you can dispute the charge. With a debit card, they take the money and it is up to YOU to try and get them to give it back.....

 

[markfp-1]

It shouldn't be a big deal. Call customer service at the bank that issued the card. They'll tell you how to cancel the authorization. After you call, make sure you send it in writing just to be sure. Do it quickly, sometimes it takes a full billing cycle to happen.

 

[SatinKzo]

It shouldn't be a big deal. Call customer service at the bank that issued the card. They'll tell you how to cancel the authorization. After you call, make sure you send it in writing just to be sure. Do it quickly, sometimes it takes a full billing cycle to happen.

Ok, again, the OP is talking about a CHECKING account. Not a debit or credit card.

And again, it still should not be an issue as stated in other posts.

 

[neverummer187@Yahoo.com]

Dish uses about eight different collections agencies. They charge off your balance to these guys then they will hound whoever is responisble for the amount past due. Dish won't do and unauthorized debit

 

[tonyp56]

Another reason why debit cards should never be used. Credit cards are the only way to go (assuming you have decent enough credit to qualify). If they try anything funny, you can dispute the charge. With a debit card, they take the money and it is up to YOU to try and get them to give it back.....

That isn't always true. My bank, for instance, will credit my checking account and then they will investigate as to rather or not it was a authorized charge. If it wasn't then they will try to get their money back, if it was they will take it back off of my account. And that is using a Visa debit card.

 

[markfp-1]

Sorry, I misunderstood, but even so, the bank will still be able to tell him how to stop the authorization from his checking account. It still should be done quickly because some banks take longer than others.

 

[Claude Greiner]

The ansewer is Yes. If a contract is signed with DISH Network it clearly states you give them authorization to charge any credit, debit, or bank account used to make payments on your account to recover the cost of un-returned equipment or cancellation Fees. Im not sure about past due programming, but im sure they will probably try to hit the credit card or bank account before they send it over to collectons.

As a dealer I get calls from customers all the time crying about bounced checks and over drafts after DISH Network removes large amounts of money from their bank account. The first question I ask the customer is "Did you pay your bill" and when the customer says "No" then I pull out a contract and read the line where it states that they gave DISH Network authorization to charge them and they need to call 800-333-Dish and make arrangements to return the equipment so they can get some of their money back.

I have really mixed feelings about this, one one hand the people don't have alot of money to begin with when they are being charged, but on the other hand they had an obligation to DISH to keep the service and they broke their contract.

 

[SatinKzo]

Claude, that is exactly what I was saying in an earlier post (but now I can't find it, so I bet it was on the day of the data loss).

Anyways, Yes, there is a form on the dish website to authorize automatic EFT's from a checking account, but this OP was paying with checks on a month to month basis. I don't see that as authorization for future withdrawls. No check gives people/companies the right to withdraw anything more than stated on it and for one use only.