Can a company automatically deduct funds from our business account without consent for an amount due on a piece of rental equipment?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a company automatically deduct funds from our business account without consent for an amount due on a piece of rental equipment?
It totaled almost 3k. We would have paid but was unhappy it was done without our knowledge or consent and put on a card number I was unaware that they had saved. We generally pay by check.
Asked on August 16, 2013 under Business Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
They may not do this unless you had previously agreed to let them use this credit card or account whenever there was a balance due and owing to them. You might check or review any agreements or contracts, to see if you did authorize them to do this.
If you have not been injured--that is, they only took the amount that you did owe--there is effectively no legal recourse for that they did (the U.S. legal system generally only provides recourse for loss or harm, not simply for a violation of rights), though you should consider not renting from or doing business again with a place that saves card numbers and feels free to use them later.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.