Anonymous asked in Business & FinancePersonal Finance · 1 decade ago

Unauthorized ACH from my checking account.?

So I had bought a policy with Northwestern Mutual Life Insurance and I choose to send a check every month to pay my premium so I did not sign any form of authorization. My first payment went through on 9/11/2009 and on my account stated "CHECK". Then on 9/11/2009 again, there was a ACH withdraw for the same amount. I did not authorized this ACH withdraw because I did not sign any documents with my banking account. They probably used the routing number and checking number that was on my check to do a ACH withdraw. I only deposit enough in my checking account to cover any check that I wrote out. Now my checking account is over draft and I still have other bills pending.

Is it legal of what they did??

How can I approach this situation?


Yes, the insurance company took it out twice. One transaction was the check and the other transaction was a ACH withdraw. I wrote the check but did not authorize the ACH withdraw.

3 Answers

  • Gonzo
    Lv 4
    1 decade ago
    Favorite Answer

    Did the company actually take the money out twice? Many times a company will utilize the routing number and account number to debit your account as an ACH but not run the check. You should go to your bank ASAP and they should be able to credit the amount back into your account and cover any over draft amounts. You should also contact the insurance company and tell them what happened and have them refund your account.

    Good Luck-Gonzo

  • 4 years ago

    You don't have much recourse; unfortunately when you initiate any withdrawal from the bank, check or debit or credit card, they are allowed to take whatever money you have in whatever account with that bank (its always in the fine print somewhere). Anytime you default, the full amount owed can be declared due and subtracted from your accounts. Default language is always in favor of the bank getting its money owed. I'd change banks, don't put anything into that bank or they will take it again, and the fines and interests will be more than the debt before you know it!

  • 1 decade ago

    Grab all the paperwork you have take it down to the bank and start asking some questions. it does sound like a malfunction of the machine, don't quote me on that. i know a few people who went through something similar to this. if this wasn't the machines fault then someone screwed up and probably didn't speak up and say......hope this works.

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