Is debiting a bank account without authorisation illegal?Paypal Europe has tried to debit money from my bank account without any authorisation from me. Further, their term and conditions did not authorise such a thing. Is this illegal or against usual policy in banking law? And if so, whose the best authority to make a complaint to? Thank you. |
I believe the whole matter of debiting accounts would come under Regulation E of the Federal Reserve Bank, because it involves a pre-authorized transfer. Under section 205.6, Liability of consumer for unauthorized transfers, you are not liable for unauthorized transactions. However, it looks like you would have to monitor your account to be safe.
American financial institutions are supposed to provide you with annual notice of how errors are to be resolved. http://www.bankersonline.com/regs/205/20... The form of notice is contained in Model Form A-3.
I would begin complaining at your bank. Begin with the branch manager. If he or she isn't doing what you think he should, ask to speak to somebody in the bank compliance department. The next step would be to file a consumer complaint with the Federal Regulator in charge of regulating your bank.
The complaint should be submitted in writing and should include the following:
* Complainant's name, address, telephone number;
* The institution's name and address;
* Type of account involved in the complaint--checking, savings, or loan--and account numbers, if applicable;
* Description of the complaint, including specific dates and the institution's actions (copies of pertinent information or correspondence are also helpful);
* Date of contact and the names of individuals contacted at the institution with their responses;
* Complainant's signature and the date the complaint is being submitted to the regulatory agency.
The target of your complaint, depending on who regulates your financial institution, would be one of the following:
Board of Governors of the Federal Reserve System
Division of Consumer and Community Affairs
20th & Constitution Avenue, NW
Washington, DC 20551
Federal Deposit Insurance Corporation
Division of Supervision and Consumer Protection
550 Seventeenth Street, NW
Washington, DC 20429
Office of Thrift Supervision
Consumer Affairs Office
1700 G Street, NW
Washington, DC 20552
National Credit Union Administration
Office of Public and Congressional Affairs
1775 Duke Street
Alexandria, Virginia 22314-3428
Office of the Comptroller of the Currency
Customer Assistance Group
1301 McKinney Street
Suite 3710
Houston, TX 77010
Federal Trade Commission
Bureau of Consumer Protection
Office of Credit Practices
Washington, DC 20580
In the USA it's highly illegal. The FDIC regulates that here. What is the equivalent in Europe to the Federal Banking Commission?
call your bank and cancel pay pal
