Elise wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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“Dear Steve,

Okay, I owe some credit cards. I open a bank account to be able to cash my tax returns, I explain to the lady at the bank my situation and she said as long as I dont have a court order, that no one will touch my money. I went along and took her advice.

I send out checks for my bills. Some of my checks bounce and I got a letter in the mail explaining what happen. My bank account was frozen.

One of the creditors froze my account and I got in contact with him. He told me that if I give them permission to withdraw $19,000 dollars from my account for my depth, that they will release my acccount.

I sign an aggreement and they took $19,000 dollars, They told me that I will have to send every two weeks $75.00 until i finish paying my dept. I accepted. I was suppose to have finish by the end of march.

Now i wrote them a letter asking them how much do i owe now, and its showing that i still owe $895.00. the attorney is chargeing me interest and poundage fees every month. I will never finish paying my depht that way. I need help. Can they do that? OR am i just giving them my money for free.? PLease, I need advice fast.

Are they doing the right thing ? Can they charge me interest and poundage fees? OR am I giving them my money for free?

Elise”

The Answer:

Dear Elise,

I have not heard the term poundage fees in a long time.

Your question certainly brings up a lot of questions, twists and turns.

I am unclear on how the creditor could withdraw $19,000 from your bank account unless you had $19,000 in it. Also, a creditor can’t just reach into an account, unless there is court permission to do so.

There is more to this story.

At $75 every two weeks it will take you years and years to repay $19,000.

I think you need to speak to someone local that you can sit down with and better explain the situation. I would suggest that you make an appointment with a local attorney that is licensed in your state.

Steve