CashNet USA and ACH Revoke

I started trying to get out of the payday loan mess back in November. I soon realized that I had to get my finances in order so I could keep my house, electricity on, etc. and sent letters to both CashNetUSA and Checkngo stating that I could not pay what I owed them at this time and was revoking their ACH authorizations. I sent these letters by certified mail. They contacted me to set up payment arrangements which I tried to stick to, but it was still too much for me to handle. They wanted hundreds of dollars twice a month, and I could not manage that. After talking to them frequently since November and paying smaller amounts with a prepaid credit card every two weeks, I finally stopped paying them completely a few weeks ago. I just couldn't afford it.

I stopped direct deposit on my bank account in November, and never put any large amounts in there for fear that they would put through ACH notifications, but they never did. Today I deposited a few hundred dollars to cover an automatic withdrawal from a utility company. Imagine my surprise when I came home and checked my balance -- CashNetUSA had put two ACH withdrawals through today for several hundred each, effectively wiping out what I had just deposited and putting me in overdraft. Plus I still have the utility payment coming out tomorrow that won't be covered. I thought, stupidly I guess, that by sending them a letter revoking their ACH authorization that they would not be able to get back in my account. Is there anything I can do about this now?

Contact your bank ASAP...talk to the branch manager and tell them that you revoked ACH rights and that have fraudently withdrawn money. Believe it Reg E...check OhioGals post. THe bank will need a copy of the ACH revocation and a copy of the green card from the post office from the certified mail is your proof they received it. They must refund you the money Immediately.

I agree with what Soaplady has said!! They should refund you the money. It would have been better if you could have closed down the bank account after revoking the ACH notification. This would have been a better option and they wouldn’t have debited the money from your account. You could have opened a new account. Nevertheless, you should also check out whether or not your payday lenders are licensed to operate in your state. If they are not licensed then, you will be liable for paying only the principal amount to them. You can contact them and pay them that amount in order to get rid of the debts.

They revoked ACH...that is all that matters. There website says they are BBB accredited....I would definately file a BBB complaint plus an AG and FTC complaint.

Thank you so much for the replies. You have no idea how just knowing that others are supportive is helping me deal with this.

I went to the bank first thing this morning and showed them all the proof -- my certified letter revoking ACH back in Nov., the green signature card proving CashNetUSA had received the notice, and requested that they return the ACH charges because they were not authorized by me. The manager took about an hour calling other bank people, looking up their procedures, and seemed a little confused about what to do. She finally had me fill out dispute forms for both of the ACH transactions but said that it might not go my way because that's usually only done when someone steals your bank info and makes fraudulent charges and that because I gave them my bank info originally, the bank might not reverse the charges.

I again showed her the regulation stating that I have a right to revoke the ACH, that I have proof I did this months ago, and that alone should be enough for the bank to reverse the transactions. I expected it to be done TODAY. She said I would have to wait 10 days to see if the bank will see the ACH transactions as "fraud" but she didn't sound hopeful.

I am very disappointed because I really thought I had covered myself. I am going to change accounts this week; I had been reluctant to do that because I had some autopays each month that come from that account and I didn't want to have to deal with changing all of that over, but it's going to happen now.

Do I have any recourse if the bank refuses to return these ACH charges? Also, what do I now need to do to CashNetUSA for violating the ACH revoke?

Thank you so much!

You need to call them both and set up alternate payment arrangements. CnG will honor the revoke but CNU won't.

File a complaint with the TX OCCC regarding the unauthorized withdrawal.