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Posted: Mon Aug 14, 2006 11:22 am Subject: Questions About ACH

Hi.

I am about to stop payments on two payday loan companies: Cash Central and Ten Dollar Payday.

Once I do ACH stop, what occurs after that? Will this appear on my credit report? Will they call each day to harass me or bother me at work?

I can pay each of them off and never get another one. But I need time because money is becoming tight.

Posted: Mon Aug 14, 2006 11:28 am Subject:

Have you called them to try and make some alternate arrangements?
Sometimes they will work with you. Also to CYA, call them anyway and tell them you've closed your account.
What state are you in?

Posted: Mon Aug 14, 2006 12:08 pm Subject:

Please also remember that you can only stop one part of the ACH. Since most payday lendors divide their payments in 1/2, and attempt at getting their money back twice, you may have to request two different stops. Another reason stopping an ACH is difficult is because it's not actually tied to a check number. So you'll have to do the same thing the following week. Since you only have two payday loans, could you possibly work something out with them. Perhaps pay one each payday, if the amount isn't too large.

Regards
Mike

Posted: Mon Aug 14, 2006 12:33 pm Subject:

Cash Central said that the only thing that they can do is to send it through on Wednesday and if it comes back, then they will do collection proceedings.

ten Dollar was a little nicer. I had faxed to them a letter indicating the reason why I couldn't pay my loan or the finance fee. The lady called me and said that the only thing that they can do is send it through and if it comes back, a week later they would call me back for the collection proceedings to begin and give me thirty days to pay off the loan.

But will the ACH stop do anything at all? My bank told me to come and fill out a form to stop the debit and give me their names. But I don't know what to do.

Posted: Mon Aug 14, 2006 12:34 pm Subject:

I'm in Louisiana by the way.

Posted: Mon Aug 14, 2006 12:41 pm Subject:

Mike, am I correct in remembering that when you do an ACH block, in addition to what you posted, it only blocks for the specific dollar amount you designate? So if the first ACH is blocked, they could send another one through with a .01 cent increase and it would clear? Alexandra, if this is the case, you probably will have to look at defaulting on your payday loans to make payment arrangements. You may have a couple of options instead of having to resort to closing your account or anything. Try asking your bank if they will block all withdrawals from the PDL names you give them, instead of one ACH block for each. Also, if you send the PDL's a letter and a fax with a revocation of authorization to debit your account and indicate your good faith desire to resolve the debt with them, your original creditor, through payment arrangements, they may be less likely to sell the account to a collections agency.

Posted: Mon Aug 14, 2006 12:44 pm Subject:

I think the ACH blocking rule differs from bank to bank or credit union to credit union. I know that I blocked a car payment once and it stopped all withdrawals to that company - talk about a mess. I would definitely check with your banking institution to see what the policy is.

Try to get them to work with you before they send you to collection. Have you overpaid them already?

Guest · Posted: Wed Aug 16, 2006 11:02 pm Subject:

I spoke with each payday loan company and got their stance on it. I went to the bank today and they did a statement of unauthorized debit (or something to that effect) which will block all further debits from those two companies. The lady at the bank told me that if they decide to send another amount through that the amount would be blocked too. I hope that tis works because I don't want to have borrow money to pay for money, if you know what I mean.

tonyh79 · Posted: Wed Jun 25, 2008 10:39 am Subject: ach blocks

i have a few ach blocks i need to send to three pdl companies but i don't know how to write them up so if anyone has a copy of one I could use that would be great. all of you guys have been amazing keep up the great work. thanks

Posted: Wed Jun 25, 2008 11:10 am Subject:

You can just type a letter with the companys information and simply state that you are revoking your authorization to make any further debits from your account 12345678. Do you plan on making payment arrangements with them, you could state that in the letter as well. Make sure you give a copy of the letter to your bank as well. Have you tried talking to the bank to see if they can place a block on your account from these companies? I will find the link to the letters on this site, if nobody beats me to it.

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