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 Posted: Tue Dec 18, 2007 10:12 am Subject: ACH Debit Authorizations Revoked - Still Sending Through
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I got in a horrible mess with Internet Payday Loans. I paid them all for months. Huge amounts of fees. About 6 weeks ago, I notified each of the companies in writing via fax that I was revoking the ACH Debit authorizations. I did this within the time stated I was allowed to do so in each of the contracts. I told them that I wished to make alternative payment arrangements and asked them to contact me with the best way to do so immediately. They all continued to send through the debits. I had notified my bank (Chase) the same day that I was revoking authorization to each of these companies. The person told me that if any of them went through, that all I would need to do was contact the dispute/claims department and the debit would be returned. LIE! They let them all go through. I contacted the Claims department only to be told that I was not allowed to stop these because of a contract, however; the contracts themselves say that I have the right to revoke the authorization. I asked Chase to close my account or at least freeze it to a deposit only status. Still allowing the ACH debits to go through. I am not over $3,000 in the negative between these PDLs and my bank not cooperating with my request. I wish to pay each of them, but have to make alternative arrangements. I asked to do this is writing so I would have the information for my records. No luck on either end. Does anyone here have any information, sample letters to send to the PDL companies and/or the bank? Recommendations? I have researched and researched and everything I have read gives me the right to stop these debits and that the bank has to block any further debits if I notify them that the authorizations are no longer valid. They keep trying to argue with me over it instead of trying to work with me.
I'm sorry to vent so much, but I am at a complete loss. I'm being raked over the coals again and again with no end to any of this mess in sight. I'm looking for someone that has some insight on what to do.
Please?
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bttrflyv69
Joined: 18 Dec 2007
Posts: 17
Debtcc Points: 811
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Posted: Tue Dec 18, 2007 10:16 am Subject:
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I am so sorry that this happened to you. These pdls will never stop debiting your account. This is why we never contact them before we close our checking accounts or hard block them. Once a pdl gets wind of the fact that you are not going to allow them to debit, that causes them to be more aggressive in their attempts to take your money.I doubt that the bank will allow you to close your account now, because you are so overdrawn. You need to see if they can put the account on deposit only or hard block. If not you will get even more nsf charges. You also need to make other arrangements for your pay check if you have direct deposit.
You really need to go in person to your bank and speak directly with the manager. Explain that there has been fraud on your account and it must be closed.They need to be able to do something to help you.
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kashzan
Debt Samaritan
Joined: 11 Jul 2007
Posts: 5463
Debtcc Points: 38903
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Posted: Tue Dec 18, 2007 11:26 am Subject: Thank you.
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Hi Kashzan.
Thank you for the reply. I tried to do what was right. I tried to close the account or make it deposit only on the 20th of November. I have been in contact with my bank, but they say I need to come in. Unfortunately, I can't get out of work to go do so. The branches all close before I can get there. I work on Saturdays, too, so even that is out. Do you think if I wrote or faxed the branch manager directly with my situation, that might help? I have all communications from the bank and to the bank as well as copies of everything I sent to the pdls. I have pulled my direct deposit and opened an account elsewhere to protect both my paycheck and my husband's. I have never had an overdrawn account and now it's about as overdrawn as it can be. I just wish there were some way to retroactive all this with the bank - to the time they were first notified. My account would not be overdrawn at all, if they had done what I asked when I asked. 
I appreciate your information. It's nice to have a polite reply from someone. Thank you.
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bttrflyv69
Joined: 18 Dec 2007
Posts: 17
Debtcc Points: 811
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Posted: Tue Dec 18, 2007 11:31 am Subject:
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I just wish that you could somehow make it in to your branch.Is your job far from the bank?
We always reccommend to go in person. Can you go at luch time. figure it this way, if they dock your pay, it may be less of a loss than what the bank charges will be. Just a thought. Anyway , if it is impossible can you speak with the manager on the phone and explain that you need their help but can not get to the bank. Try anything , just get them to help. Please bring up the fact that you were told none of these things would get thru and because of the misinformation you were given by them, you are now overdrawn. You need to have those charges reversed.
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kashzan
Debt Samaritan
Joined: 11 Jul 2007
Posts: 5463
Debtcc Points: 38903
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Posted: Tue Dec 18, 2007 12:01 pm Subject:
Latest Blog Post : http://frogpatch.yesdebtfree.org |
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It is worth it to use a sick day or vacation day to get this taken care of. Go there and explain to the manager how you wish to remain in good staning with the bank and how you legally revoked the ACH priveledges. You can file complaints against these companies for violating the law against compulsory electronic withdrawals.
Have you ever told us who these loans are through? Are they internet or storefront? How much you borrowed from each one and how much you have paid each one so far? Also the state that you live in.
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frogpatch
Moderator
Joined: 09 Apr 2007
Posts: 3559
Debtcc Points: 30195
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Posted: Tue Dec 18, 2007 12:04 pm Subject:
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did you fax these letters stating that you wish to revoke the authorizations? if so take the confirmation sheets to the bank, or if you really cannot get out then fax them to the bank manager, but i would suggest you spending your lunch break if need be to walk into the bank
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jaydanielle1
Joined: 24 Oct 2007
Posts: 553
Debtcc Points: 5761
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Posted: Tue Dec 18, 2007 3:21 pm Subject:
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Chase is the worst bank in the world to work with on these. Remember, banks make a fortune on the NSF fees they charge when these things go through. The last thing a bank wants to do is let you close an account.
When you go in just stick to your guns. The Electronic Funds Transfer Act and NACHA rules make it crystal clear that you have the right to revoke ACH authorizations and that any attempt to debit more than 3 business days follwingg your revocation is an unauthorized debit that can be treated as fraud for purposes of reversing the transaction.
_________________
The law is a lot more complicated than some folks would have you believe.
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FreakyFriday
Joined: 13 May 2007
Posts: 293
Debtcc Points: 4453
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Posted: Wed Dec 19, 2007 12:18 pm Subject:
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I would like more info on this EFTA and NACHA. Does this act protect the bank or the consumer?
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bjpetersen2
Joined: 09 Nov 2007
Posts: 71
Debtcc Points: 1473
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Posted: Wed Dec 19, 2007 12:54 pm Subject:
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Per the Electronic Funds Transfer Act:
| Quote: | § 205.10 Preauthorized transfers.
(a) Preauthorized transfers to consumer's account--(1) Notice by financial institution. When a person initiates preauthorized electronic fund transfers to a consumer's account at least once every 60 days, the account-holding financial institution shall provide notice to the consumer by:
(i) Positive notice. Providing oral or written notice of the transfer within two business days after the transfer occurs; or
(ii) Negative notice. Providing oral or written notice, within two business days after the date on which the transfer was scheduled to occur, that the transfer did not occur; or
(iii) Readily-available telephone line. Providing a readily available telephone line that the consumer may call to determine whether the transfer occurred and disclosing the telephone number on the initial disclosure of account terms and on each periodic statement.
{{10-30-98 p.7369}}
(2) Notice by payor. A financial institution need not provide notice of a transfer if the payor gives the consumer positive notice that the transfer has been initiated.
(3) Crediting. A financial institution that receives a preauthorized transfer of the type described in paragraph (a)(1) of this section shall credit the amount of the transfer as of the date the funds for the transfer are received.
(b) Written authorization for preauthorized transfers from consumer's account. Preauthorized electronic fund transfers from a consumer's account may be authorized only by a writing signed or similarly authenticated by the consumer. The person that obtains the authorization shall provide a copy to the consumer.
(c) Consumer's right to stop payment--(1) Notice. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer.
(2) Written confirmation. The financial institution may require the consumer to give written confirmation of a stop-payment order within 14 days of an oral notification. An institution that requires written confirmation shall inform the consumer of the requirement and provide the address where confirmation must be sent when the consumer gives the oral notification. An oral stop-payment order ceases to be binding after 14 days if the consumer fails to provide the required written confirmation.
(d) Notice of transfers varying in amount--(1) Notice. When a preauthorized electronic fund transfer from the consumer's accounts will vary in amount from the previous transfer under the same authorization or from the preauthorized amount, the designated payee or the financial institution shall send the consumer written notice of the amount and date of the transfer at least 10 days before the scheduled date of transfer.
(2) Range. The designated payee or the institution shall inform the consumer of the right to receive notice of all varying transfers, but may give the consumer the option of receiving notice only when a transfer falls outside a specified range of amounts or only when a transfer differs from the most recent transfer by more than an agreed-upon amount.
(e) Compulsory use--(1) Credit. No financial institution or other person may condition an extension of credit to a consumer on the consumer's repayment by preauthorized electronic fund transfers, except for credit extended under an overdraft credit plan or extended to maintain a specified minimum balance in the consumer's account.
(2) Employment or government benefit. No financial institution or other person may require a consumer to establish an account for receipt of electronic fund transfers with a particular institution as a condition of employment or receipt of a government benefit.
[Codified to 12 C.F.R. § 205.10]
[Section 205.10 added at 44 Fed. Reg. 59471, October 15, 1979; amended at 45 Fed. Reg. 8265, February 6, 1980, effective May 10, 1980; 61 Fed. Reg. 19672, May 2, 1996] |
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
Vivek? Where are you my love?
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 7935
Debtcc Points: 111173
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Posted: Wed Dec 19, 2007 12:55 pm Subject:
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NACHA provides the legal foundation for the ACH Network through the development and enforcement of the The NACHA Operating Rules. Rules and guidelines are established for all participants in the ACH system and ensure that the Network infrastructure, applications, rules and enforcement are consistent with processing payments in a secure, reliable, and efficient manner, and that financial institutions have access to effective risk management tools.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
Vivek? Where are you my love?
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 7935
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Posted: Fri Dec 21, 2007 7:22 am Subject:
Latest Blog Post : http://frogpatch.yesdebtfree.org |
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You PMd me all the loans you have but not the state you live in. You have in most cases overpaid all but 2 of your loans. One that you paid the principal on but possibly not the interest is BIG. Forget them. They will harrass you to death but do not pay thm anything as they are totally illegal. Most if not all of the others are unlicensed anywhere. So basically you should owe money to only one if you reside in most states. Please post the info you sent me along with your state so others can add feedback. To me you look lke you are in pretty good shape with only your bank to deal with. Some of these companies might even give you a refund if you press them. But first we need to know where you live.
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frogpatch
Moderator
Joined: 09 Apr 2007
Posts: 3559
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Posted: Fri Dec 21, 2007 7:38 am Subject: Hopefully this will actually post today.
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Frogpatch -
Thank you for the info. I live in Indiana. Any more information would be greatly appreciated.
Here are the companies, they are all online PDLs. I have listed original amounts and amounts paid to date on each.
Company Loan Amount Paid
BIG, Ltd. $200 $215
CMG $250 $150
Cash Direct Express $300 $680
Eastside Lenders $300 $985
Flash Loans $300 $825
Impact Cash $200 $240
JD Marketing $250 $225
Loan Point $300 $360
Nationwide $400 $810
Net Cash $500 $950
Payday Loan Yes $300 $240
RCM $200 $180
Upfront Payday $400 $1,000
Thank you again to everyone.
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bttrflyv69
Joined: 18 Dec 2007
Posts: 17
Debtcc Points: 811
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Posted: Fri Dec 21, 2007 7:42 am Subject:
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| Quote: | Indiana State Information
Legal Status: Legal
Citation:
Ind. Code Ann. § 24-4-4.5-7-101 et seq.
Loan Terms:
Maximum Loan Amount: $550 (not to exceed 20% of borrower's monthly gross income)
Loan Term: Min: 14 days
Maximum Finance Rate and Fees: 15%: $0-$250; 13%: $251-$400; 10%: $401-$500
Finance Charge for 14-day $100 loan: $15
APR for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One per lender; Two total
Rollovers Permitted: None (cannot renew, repay, refinance or consolidate)
Cooling-off Period: 7 days after 6 consecutive loans
Repayment Plan: After 3 consecutive loans, lender must offer an extended payment plan of at least four equal installments at no additional cost
Collection Limits:
Collection Fees: One $20 NSF fee; additional charges may apply when check or authorization to debit was used to defraud another
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Indiana Department of Financial Institutions
Address: 30 South , Suite 300 Indianapolis IN 46204
Phone: (800) 382-4880
Fax:
Regulatory Contact: Mark Tarpey,, Supervisor, Consumer Credit
Regulator Website
http://www.in.gov/dfi/ |
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kashzan
Debt Samaritan
Joined: 11 Jul 2007
Posts: 5463
Debtcc Points: 38903
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Posted: Fri Dec 21, 2007 1:11 pm Subject: B.I.G.
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Is there an address for this company that I can send a cease and desist letter to. They are not calling my home phone, they are calling my work phone. 15 calls in less than 5 minutes. All I have for them is a fax number and a phone number.
Also, are there any examples of letters to send to these companies? I'm not looking to copy someone else's correspondence or to find a form letter of some sort. Just looking for some guidance so I don't sound like an idiot.
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bttrflyv69
Joined: 18 Dec 2007
Posts: 17
Debtcc Points: 811
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Posted: Fri Dec 21, 2007 2:14 pm Subject:
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you should forward this info to your state ag and inform them, it says above that you are only supposed to have 2 loans at one time, BIG is illegal and you have paid them what you borrowed, you need to start typing up letters revoking wage assignment also!
And what company exactly are u looking for?
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jaydanielle1
Joined: 24 Oct 2007
Posts: 553
Debtcc Points: 5761
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