Legal Question in Banking Law in Georgia

Can a company take money out of your account without asking

Asked on 10/07/13, 3:03 pm

2 Answers from Attorneys

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It depends. The answer in most cases is no. A company cannot take money out of your bank account without (a) your authorization or (b) a judgment.

However, you do not indicate who is taking money out, whether you authorized this or why a company would even be doing this.

There is a special rule for banks taking money out called a right of set off. If you owe money to a bank, say for a credit card or overdraft protection, and if you have not paid for it but have money sitting in a bank account, the bank is allowed to exercise its right of set off and take the funds from your bank account to pay the bill the bank is owed.

If you have authorized access (you can do this by making a payment from your bank account) to a company, that information is on file and the company can go in there again. Same for payday lenders or debt collectors.

All other creditors usually have to get a judgment against you before they can get into your bank account. Once they have a judgment, a writ of execution (called a fieri facias or FiFa) will be issued. The sheriff will send the order to banks or others holding your property and the bank can freeze any non-exempt funds in the account and turn it over to the creditor.

Try re-posting your question with more details or contact me privately at rachelforjustice@hotmail.com if you are interested in discussing the specifics of your situation in confidence.

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10/07/13, 4:32 pm
Glen Ashman Ashman Law Office
0 users found helpful
0 attorneys agreed

Maybe. You didn't say how. For example, a garnishment happens without your consent. Without more details there is no way to know what happened to you.

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10/07/13, 6:34 pm

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