Yes, but only if you gave them permission or a court ordered it
A company can pull money from your bank account in three ways: you authorized it in writing (like a subscription or loan agreement), you authorized it verbally or online (like over the phone), or a court issued a judgment against you and the company got a garnishment order. The most common scenario is authorization you gave and then forgot about—a gym membership, insurance premium, or app subscription that keeps charging. The second is a debt collector or creditor with a court judgment who can garnish your wages or bank account. The third is rare and requires actual legal action.
The key word is authorization. Without it, taking money from your account is theft, and your bank is required to reverse the charge. But "authorization" is broad—it includes things you agreed to years ago in fine print, things you said yes to on a phone call, and things you clicked through without reading.
Key Takeaways
- Recurring charges (subscriptions, memberships, insurance) are legal only if you signed or verbally authorized them, but many people forget they did.
- If you did not authorize a charge, your bank can reverse it as an unauthorized transaction, usually within 10 business days.
- A debt collector or creditor with a court judgment can garnish your bank account without asking permission first—they go straight to the court.
- Stopping a recurring charge requires contacting the company directly; disputing it with your bank works but takes longer.
- Your bank account has some protection: federal law limits your liability for unauthorized charges, and some states protect a portion of your account from garnishment.
Recurring charges you authorized but want to stop
Most money taken from your account without your immediate say-so falls into this category. You signed up for a free trial, a monthly subscription, or automatic bill pay months or years ago. The company is legally allowed to keep charging because you authorized it—even if you forgot you did.
To stop it, contact the company directly and ask them to cancel the recurring charge. Do this before the next billing date if you can. Most companies will stop immediately; some require you to log into your account online and flip a switch yourself. Get confirmation in writing or take a screenshot showing the cancellation.
If the company keeps charging after you cancel, or if you cannot reach them, dispute the charge with your bank. Call the number on the back of your card or log into your online banking. Tell them the charge was unauthorized (or that you canceled the service and were charged anyway). Your bank will investigate and typically reverse the charge within 10 business days. The company can dispute the reversal, but the burden is on them to prove you authorized it.
Charges you never authorized at all
If a company charged you without any permission from you—not even buried in fine print—that is fraud. Your bank must reverse it. Call your bank immediately and report it as an unauthorized transaction. Federal law (Regulation E) limits your liability to $50 if you report it within 60 days of the statement date. If you wait longer, you may lose the full amount.
Your bank will open a dispute and contact the company. The company has to prove you authorized the charge. If they cannot, your bank reverses it permanently. This usually takes 10 to 30 days. In the meantime, ask your bank to issue you a new card number to prevent further unauthorized charges from the same merchant.
If the same company keeps charging you after a reversal, report it again and ask your bank to block that merchant entirely. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov.
Court judgments and bank account garnishment
If a creditor or debt collector has sued you and won a judgment in court, they can garnish your bank account without asking permission first. They file the judgment with the court, the court issues a garnishment order, and the creditor sends it to your bank. Your bank then freezes the account and transfers the money to the creditor.
You will not see this coming unless you ignored court papers or missed a hearing. By the time you notice money missing, the garnishment has already happened. However, you have the right to object. Most states allow you to claim certain funds as exempt—usually your most recent paycheck (up to a limit set by federal law) and sometimes a small amount for living expenses.
If you receive a garnishment notice, contact the court immediately or speak to a lawyer. Some states require the creditor to give you notice before they garnish; others do not. The rules vary widely by state. Your state's legal aid office can tell you what protections apply to you and whether you can challenge the garnishment.
Wage garnishment versus bank account garnishment
Wage garnishment and bank account garnishment are different. With wage garnishment, the creditor's order goes to your employer, and your employer withholds money from your paycheck before you receive it. With bank account garnishment, the money is already in your account, and the creditor takes it directly from the bank.
Bank account garnishment is faster and more complete—the creditor can take everything in the account up to the judgment amount. Wage garnishment is limited by federal law to 25% of your disposable income (or the amount above 30 times the federal minimum wage, whichever is less). Some states set lower limits.
If you are facing either type of garnishment, the fastest way to stop it is to pay the judgment in full. If you cannot, ask the court about a payment plan. Many courts will halt garnishment if you agree to pay a portion each month.
ACH debits and authorization you may have forgotten
An ACH debit is an electronic transfer from your bank account. Companies use ACH to collect rent, insurance premiums, loan payments, and utility bills. When you set up automatic payments or sign a contract that includes automatic payment language, you are authorizing ACH debits.
The problem is that ACH authorization is easy to give and hard to remember. You might have authorized it years ago and forgotten. The company is still allowed to debit your account as long as the authorization is still in effect.
To stop an ACH debit, contact the company and ask them to cancel it. They should send you written confirmation. If they do not stop, you can file a dispute with your bank and claim the debit was unauthorized. Your bank will reverse it, but the company can challenge the reversal if they have proof of your authorization.
If you want to stop all ACH debits from a particular company, you can also file a stop payment order with your bank. This costs money (usually $25 to $35) and lasts for a set period, typically six months. After that, you have to file a new stop payment order if the company tries again.
What to do if money was taken without permission
First, gather evidence. Pull your bank statements and credit card statements for the past 60 days. Write down the date, amount, and merchant name for each unauthorized charge. Take screenshots of your account showing the charge.
Second, contact the company. Call the number on your statement or their website. Explain that you did not authorize the charge and ask them to reverse it. Keep a record of who you spoke to, the date, and what they said. If they refuse, ask for their dispute process in writing.
Third, contact your bank. Call the number on the back of your card or log into online banking. Report the charge as unauthorized. Your bank will open a dispute and send you a form to sign. Return it within the deadline (usually 10 days). Your bank will investigate and reverse the charge if they find it was unauthorized.
Fourth, if the charge happens again, repeat the process and ask your bank to block the merchant. You can also file a complaint with the CFPB, which investigates patterns of unauthorized charges and can fine companies that repeatedly violate the law.
Your protections under federal law
Regulation E, part of the Electronic Funds Transfer Act, protects you when money is taken from your account without authorization. Your liability is limited to $50 if you report the unauthorized transfer within 60 days of the statement date. If you wait longer than 60 days, you may be liable for the full amount.
Your bank must investigate your dispute and either reverse the charge or explain why they believe it was authorized. They have 10 business days to do this, though they can take up to 45 days if they need more time. During the investigation, your bank must credit your account temporarily so you have access to the money.
These protections apply to debit cards, ACH transfers, and electronic transfers. They do not apply to checks or wire transfers, which have different rules.
Frequently Asked Questions
Can a company charge my bank account if I only gave them my debit card number?
Not for recurring charges. Giving your card number for a one-time purchase does not authorize the company to charge you again. If they do, that is unauthorized and your bank must reverse it. For recurring charges, you have to explicitly authorize them—usually by signing a contract or checking a box that says "charge me monthly."
What if I authorized a charge but the company charged me twice by mistake?
Contact the company first and ask for a refund. Most will reverse the duplicate charge immediately once they see the error. If they do not, dispute the second charge with your bank as unauthorized. Your bank will reverse it because you only authorized one charge, not two.
How long does it take to get money back after I dispute a charge?
Your bank must credit your account temporarily within 10 business days while they investigate. A permanent reversal usually takes 10 to 30 days total. If the company disputes the reversal and provides proof of authorization, your bank may take the money back. If that happens, you can dispute it again or pursue the company in small claims court.
Can a company garnish my bank account if I owe them money but they have not sued me?
No. Garnishment requires a court judgment. Without a judgment, the company cannot legally take money from your account. If they do, that is theft. However, they can sue you to get a judgment, and then garnish. If you receive a lawsuit notice, respond to it—ignoring it makes it easier for them to win.
What is the difference between a stop payment order and disputing a charge?
A stop payment order tells your bank to block all future charges from a specific company. It costs money and lasts for a set time. Disputing a charge asks your bank to reverse a charge that already happened. Disputing is free and works for unauthorized charges. Use a stop payment order if a company keeps charging you after you have already disputed multiple times.