SpeedyCash can share your account number with a collection agency if you default on a loan, but only under specific circumstances

SpeedyCash is a short-term lender that typically requires your checking account number as part of the loan agreement. If you stop paying, they can report the debt to a collection agency and provide that agency with your account information. This is legal under the Fair Debt Collection Practices Act, which permits creditors and their agents to pursue collection through your bank account — though they must follow rules about how and when they can do it.

The key distinction is between sharing your number (which they can do) and taking money without permission (which they cannot do without a court judgment). A collection agency cannot simply drain your account because they have your number. They need either your written consent, a court order, or a judgment against you first.

Key Takeaways

  • SpeedyCash can give your account number to a collection agency if your loan goes unpaid, as this is permitted under federal debt collection law.
  • Having your account number does not let a collection agency take money — they need a court judgment or your written permission first.
  • Once a judgment is entered, the agency can use a process called garnishment to pull money directly from your checking account.
  • You have the right to dispute the debt and request verification that it is actually yours before any collection action proceeds.
  • Stopping communication with a collector does not stop them from filing a lawsuit, but it does prevent them from contacting you by phone or email.

When SpeedyCash reports you to a collection agency

SpeedyCash typically reports unpaid loans to collection agencies after you have missed payments for 60 to 120 days, depending on their internal policy. At that point, they can sell or assign your debt to a third-party collector, and sharing your account number is part of that handoff. The account number itself appears on your original loan agreement and bank records they already have.

The collection agency does not need your permission to receive this information — it is part of the debt record. However, they do need permission or a court order to actually access your account or remove funds from it. This is an important distinction that many people misunderstand.

What a collection agency can and cannot do with your account number

A collection agency with your account number can contact your bank to verify the account exists and is active. They can also attempt to negotiate a settlement or payment plan with you. What they cannot do is withdraw money without authorization.

To take money from your account, a collection agency must first obtain a judgment against you in court. This requires filing a lawsuit, serving you with notice, and winning the case. Only after a judgment is entered can they pursue garnishment — a legal process that allows them to pull money directly from your checking account. The bank will freeze the account or transfer funds according to the court order, but this step cannot happen without that court document.

Some states allow collectors to attempt post-judgment discovery, which means they can ask you questions under oath about your assets and income. Your checking account information could come up in that process, but again, they still need the judgment first.

How to stop a collection agency from using your account information

Your first step is to send a debt verification letter to the collection agency within 30 days of their first contact. Under the Fair Debt Collection Practices Act, they must stop collection efforts and provide proof that the debt is actually yours. Send this letter by certified mail with return receipt so you have proof of delivery. A sample letter is available from the Consumer Financial Protection Bureau website.

If you dispute the debt, the agency cannot pursue collection until they send you verification. If you do not dispute it but cannot pay in full, you can propose a settlement or payment plan in writing. Many collectors will accept partial payment to close the account rather than pursue a lawsuit.

If the agency ignores your verification request or continues collection after you have disputed the debt, you can file a complaint with the Consumer Financial Protection Bureau or your state attorney general's office. You can also sue the collector for violating the Fair Debt Collection Practices Act, and you may recover damages plus attorney fees.

Protecting your account before a judgment is entered

Once a collection agency has your account number but before they have a judgment, your account is not at immediate risk. However, you should monitor your account for any unauthorized activity and keep records of all communications with the collector.

If you know a lawsuit is likely, some people move funds to a different bank or open a new account at a different institution. This is legal, but it only delays the problem — a judgment can still be entered against you, and the collector can garnish any account they discover. A better approach is to respond to any lawsuit notice immediately and either settle the debt or defend yourself in court.

Do not ignore a lawsuit summons. If you are served with court papers, you have a limited time (usually 20 to 30 days depending on your state) to respond. Failing to respond results in a default judgment, which is much harder to overturn than fighting the case from the start.

What happens after a judgment is entered

Once a collection agency wins a judgment against you, they can use your account number to locate and garnish your checking account. The process varies by state, but typically the collector files a garnishment order with the court, which then sends it to your bank. Your bank is legally required to comply and will freeze or transfer the funds according to the order.

Most states protect a portion of your income from garnishment — often called exempt funds. These typically include Social Security benefits, unemployment benefits, and sometimes a portion of wages. If your account contains only exempt funds, the bank may refuse the garnishment or return the money. You may need to file a claim with the court to prove the funds are exempt.

A judgment also appears on your credit report and can affect your ability to borrow money, rent housing, or open new bank accounts for several years. The judgment itself is typically enforceable for 10 to 20 years depending on your state, meaning the collector can attempt garnishment repeatedly during that time.

Your rights if SpeedyCash or a collector violates the rules

Collection agencies are bound by the Fair Debt Collection Practices Act, which prohibits harassment, false statements, and unauthorized account access. If a collector contacts you repeatedly, calls before 8 a.m. or after 9 p.m., contacts your employer without permission, or threatens you, these are violations you can report.

You have the right to send a written request asking the collector to stop contacting you. Once they receive this letter, they can only contact you to confirm they have stopped or to notify you of a specific action like filing a lawsuit. Continuing to call or email after receiving a cease-contact letter is a violation.

If a collector accesses your account without a judgment or your permission, that is also a violation. Report this to the Consumer Financial Protection Bureau, your state attorney general, and consider consulting a consumer protection attorney about filing a lawsuit against the collector.

Frequently Asked Questions

Can SpeedyCash take money from my account without telling me?

No. SpeedyCash or a collector acting on their behalf cannot withdraw money without either your written permission, a court judgment, or an active authorization from your original loan agreement. If you signed a document allowing automatic withdrawals and you are in default, they may attempt to use that authorization, but you can revoke it by contacting your bank.

What if I close my checking account after SpeedyCash reports me?

Closing your account stops the collector from using that specific account number, but it does not eliminate the debt or prevent a lawsuit. The collector can still pursue a judgment, and once they have one, they can garnish any new account they discover. A better approach is to address the debt directly through settlement or payment plan.

Does a collection agency need my permission to call my bank about my account?

A collector can call your bank to verify your account exists and is active, but the bank cannot disclose your balance or transaction history without a court order or your permission. The bank will confirm the account exists but will not provide details about your funds.

How long can a collector try to garnish my account after getting a judgment?

A judgment is typically enforceable for 10 to 20 years depending on your state, and many states allow collectors to renew judgments before they expire. This means a collector can attempt garnishment repeatedly during that entire period, though they must follow the proper legal process each time.

Can I stop a garnishment once it has started?

You can file a motion with the court to stop or reduce a garnishment if the funds are exempt (like Social Security or unemployment benefits) or if you can show the garnishment causes undue hardship. You must act quickly — most states require you to file within a short window after the garnishment begins. Consult a local attorney or your legal aid office for help with this process.