Debt collection -- Attempts to collect debt not owed -- Complaint #13833962

Complaint Overview

Complaint ID: 13833962

Company: Checkredi Of Kentucky, LLC

Product: Debt collection

Sub-Product: Other debt

Issue: Attempts to collect debt not owed

Sub-Issue: Debt is not yours

State: New Hampshire

ZIP Code: 03051

Date Received: 2025-06-01T12:00:00-05:00

Date Sent to Company: 2025-06-01T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

On XX/XX/2025, CHECKredi debited my bank account for {$25.00} without my authorization. This charge was labeled as a returned check fee related to a gas station rewards account I had previously used. However, I had already canceled that account on XX/XX/2025, and had explicitly stated in a phone call with their representative that I did not agree to pay the {$25.00} fee. This revocation occurred two business days prior to the unauthorized ACH debit. I also have recordings of my phone calls with the collection agency, including the call where I revoked authorization two days prior to the debit and the call where I canceled my account. I can provide these if needed. Id also like to note that the company debited my account on the same day ( XX/XX/XXXX ) for the original transaction amount of {$28.00}, which I did not explicitly authorize. However, I do not contest that specific amount. In fact, when I called them days earlier to resolve the matter, I offered to pay the original {$28.00} directly, but they refused to accept payment unless I also agreed to pay the disputed {$25.00} fee. This further supports that the fee was being enforced as a condition of resolving the original debt, which I believe was unfair and coercive. Under the Electronic Fund Transfer Act ( EFTA ), consumers must receive a copy of their written authorization at the time of any preauthorized debit. CHECKredi never provided me with such authorization, and the charge was not scheduled or agreed to in writing. Additionally, they failed to provide proper debt validation when I formally disputed the debt by email. Their response included only a generic copy of the terms of service, with no account-specific authorization or signature. I also believe this charge was unfairly disclosed. The {$25.00} fee was located in the middle of a lengthy 17-page agreement without any clear notice at the time I signed up, and I had no meaningful opportunity to understand or agree to it at the time of enrollment. Further, their own terms of service state that upon account closure, all personal and banking information will be deleted and the account terminated. Despite this, they retained my account and banking info and used it to issue an ACH debit after cancellation, which directly violates both their own terms and standard ACH network rules. I believe this transaction was unlawful and the collection of this fee is improper. I have notified both CHECKredi and my bank. I am requesting that the CFPB review this situation and take appropriate action to ensure compliance with federal regulations.

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This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

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