Legal Question in Banking Law in New Jersey

Unauthorized bank withdrawls

I am a resident of NJ. Back in early 2006, six transactions (each $500) were withdrawn from my bank account by an internet banking company that does business for an online poker site. Upon discovery, I immediately reported this to my bank, the other bank, and filed a police report. My bank returned the funds to my bank account once I signed a statement indicating I did not authorize these transactions. They then proceeded to recover the funds from the online bank.

When I did some investigating, I found out from the online bank and online poker site that an account was created in my name using my correct address and phone number. They used a false SSN#, driver�s license number and e-mail address.

I was contacted today by an attorney for a Midwest collections agency (OH) attempting to come after me for reimbursement of these funds because I was the named account holder with the online bank. He indicated that there was a letter in the mail describing their collections effort. He requested a copy of the police report I filed and says that upon receipt he will talk to his client (online bank) about dropping the case if he determines it is identity theft.

This whole process disturbs me because I did nothing wrong and was


Asked on 1/04/07, 5:29 pm

2 Answers from Attorneys
John Corbett Corbett Law Firm LLC

Re: Unauthorized bank withdrawls

The online bank can pursue whatever claim it thinks that it has including a suit. The methods that the online bank and the collector are permitted to use are governed by the Fair Debt Collection Practices Act. The essential purpose of that Act is to prevent the use of threats and harassment as a collection technique. If you don't believe that you owe the money and they know that, their option is to sue and have the matter decided by a judge. If they engage in unfair collection practices, then you can sue for damages under the Act even if their claim turns out to be valid.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 1/05/07, 10:37 am

Re: Unauthorized bank withdrawls

Send him a copy of the police report and if he (or his client) does not drop the case, contact me and we can sue them.

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Answered on 1/04/07, 5:37 pm


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