Question

Payday One is a legally operating company in CA . . . .

Some payday loan companies will make you default before you can set up payments. That's fairly normal.

Is there anything I can do? I have a really good standing with my bank and don't want to do anything to harm it.

You will have to block the ach transaction, and send Payday One a letter revoking authorization to debit your bank account. Then you can set up payment arragnements with them once the payment goes back to them.

So I am thinking I need to go down personally to my bank and request this? Also, when I send the letter to payday one, do I just say I am revoking your right to debit my bank account? Sorry for the questions, I just want to make sure I do this correctly. I don't want to say the wrong thing.

proud, yes, go to your bank. Put a debit block on PayDayOne. Once the debits are returned, you will be considered in "default". Which, you will then be able to make payments (at least that's what they told you!). Since PayDayOne is licensed/legal, you will need to contact them once the block is put on your bank account and tell them you need to set up payments and they need to be something other than debits (money order, money gram, western union, pre-paid debit card, etc.).

To revoke authorization send them this:

I, YOUR NAME, hereby revoke any and all authorization I gave Payday One, or any of it's affiliates, to debit in any way any account I may be a signer on.

Thank you so much for your help. I was at a loss. The last thing I want to do is cause my checking account to be a mess.

Well unforunately my bank won't do this. They told me it was between myself and Payday One. They said to send something like you suggested about revoking the authorization and then if they tried to debit then any money I lost would be returned within 60 days. Any fees I got from insufficent funds, they told me I could work out with them and that if I can prove Pay Day One has receipt of my letter then I won't be charged NSF fees. I am worried now, because even if I send a revoke letter there's always a chance they could try. My bank was really nice, but just not what I was hoping for. I will send the letter today to Pay Day One and see what happens.

Some banks can be difficult to work with . . . . Sned the letter today as planned, and give a copy to your bank.

Also, it is your right per the Electronic Funds Transfer Act to revoke authorization. You bank must let you block companies from debiting your account. I would go in person to your bank and speak with a manager. Maybe don't mention payday loans, just say you are having problems with a company that won't stop debiting your account, even though you have revoked authorization. Take the letter with you. You may have better luck in person.

Thanks. I did go in person earlier and that's what I was told. I didn't speak to a manager though. I will go back and ask to speak to the manager. Thank you!