Someone asked what was wrong with giving the account verbally since they can pull the same info off the written check. Here is the difference.
When you write a paper check, you have put in writing that the payee can only get the amount written on the check and this draft can only be made once.
When you give verbal approval, there is nothing in writing, you did not record the conversation and it becomes, as Chad said, someone I owe $1k to took $1k and your word against theirs.
Here is another catch, I know Dave Ramsey is dead set against all credit cards. If you a member of any kind of club, whether it is a gym or an internet Movie rental club and give them permission to automatically draft your account, you are the one at risk. When you go to cancel and they keep taking the money, the bank’s attitude will not make you happy.
One more thing, the settlement’s asterisk comments said something about “provided no additional charges appear on this account after the date of this letter”.
Clarify with them whether any further interest, finance, penalties etc will show up if they will then nullify the agreement.
I can testify to that being true. A company told me I could get a discount if I let them automatically draft my account each month so I said ‘yes’. I agreed to one year, and 1 year only. They took it out every month but the end of the 12 months, when I had cancelled, they still took it out of my account for a total of $100 over & above the agreed amount. I called & left messages & they never returned my calls. I even sent the owner a couple of certified letters thinking he would do the right thing and credit my account especially seeing that I was a loyal customer but I was very wrong! He never responded nor did I get anything back.
I am so happy that I read these threads regarding this subject. A creditor called me this morning and asked for my debit card number so that the amount that I owed could automatically be deducted from my checking account or either given them my checking account number. If it hadn’t been for the group, I probably would have given it to them, which I did not and they were forced to accept a check after my payday. Thank you, thank you, thank you!