Bank account debited-- is it legal???

[Broken]

What is the name of your state? Illinois

Some close friends of mine are going through similar financial problems that my wife and I were about a year ago. EXCEPT... one of their creditors debited their bank account $800 without them knowing about it, and the balance they owed that company was only $300. Is this legal? They're going to see an attorney on Tuesday about possibly filing for BK, but their account is in the negative in the meantime. Can they do something about this? Will they get the money back?

On my own behalf, thank you all who gave me advice in the past. And I greatly appreciate the help now.

 

[Ladynred]

Do your friends already have a judgment against them ? Was it the original creditor or a collection agency ?

If they file for bankruptcy, that money could be recovered.

 

[Broken]

Ladynred, I don't think they have a judgement against them yet. I don't believe they've even been officially served with any papers at all. After what we went through, I really don't want to see them go through the same thing... hence, I'm in here looking for answers. I guess checks are bouncing left and right now since they're account is overdrawn. This just doesn't seem like it can be legal...

 

[bigun]

If they defaulted on a loan or cc with that bank, the bank executed an offset and is legal.

 

[Ladynred]

And if it wasn't the bank itself taking the money, then it is likely NOT legal if it was a creditor or CA just helping themselves because they had their account information ! If that's the case, then they need to contact their bank and tell them that the withdrawl was NOT AUTHORIZED and taken without their being notified.

 

[Broken]

I believe it is the bank itself holding the money, but the account in question is not with that bank. It seems as though the creditor is having the bank hold the money.