Unauthorized ACH Transaction

[zandar]

My question involves an auto loan or repossession in the State of: Wi

We have an Auto Loan with Wachoivia Dealer services. We have always paid them by check, never electronically. We are late on a car payment this month so they decide "hey we have all their info on the check" and "we'll just put through a bank transfer". So they put through an ACH transaction on our bank account from the info they got off the check. We NEVER authorized such. We are now overdrawn by $500.
I have read about this and fully understand that once you authorize an ACH transaction it is difficult to establish that further transactions are not authorized and it gets sticky. But when we NEVER authorized one, just wrote them a check (that they took the account and routing number off of) How on earth is that legal?

Also when we call the bank and tell them of this unauthorized transaction, the bank says we should contact Wachovia Dealer and ask them to fix their mistake. What?! Wachovia Dealer knew we didn't authorize it, it was no mistake, it was a scumbag move to get the payment without our permission.
If someone broke into your house and stole your TV would the police say "call the thief and ask them to give it back"? um, no"

[LawResearcherMissy]

Also when we call the bank and tell them of this unauthorized transaction, the bank says we should contact Wachovia Dealer and ask them to fix their mistake. What?!

Your bank is correct. There is nothing they can do to force Wachovia to put the money back - YOU have to call and ask them what kind of shenanigans they think they're getting up to.

Before you do so, however, you need to examine your contract with Wachovia very, very carefully.

Some such contracts provide for the lender to take their payment electronically if you do not meet your contractual obligation. If such a clause exists in your contract, you have no recourse, as you have not met your contractual obligation.