Choosing auto insurance can be tricky and the little nerve-racking. Once you buy auto insurance, it’s not uncommon for the insurance company to want to withdraw payments from your bank account. Our client says that she contacted GEICO for an auto insurance quote, and then agreed to purchase a policy from the company. She authorized GEICO to withdraw $37.15 from her debit account to activate the policy. That same day, she says that GEICO withdrew $387.93 from her account. When she called GEICO to ask about the withdrawal, a GEICO representative told her that it withdrew the funds to cover a past due amount. However, the debt in question was discharged in bankruptcy three years earlier. Our client told GEICO that the debt has been discharged, but GEICO refused to issue her a refund.
The lawsuit charges that GEICO violated the Electronic Fund Transfer Act by making unauthorized electronic fund transfers. The lawsuit also charges that GEICO violated the Rosenthal Fair Debt Collection Practices Act (RFDCPA) by using unfair and unconscionable means to collect a debt, and by collecting an amount that was unauthorized by agreement or law.