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Need to stop ACHs so I can get out of this mess

Date: Tue, 06/23/2009 - 17:14

Submitted by anonymous
on Tue, 06/23/2009 - 17:14

Posts: 202330 Credits: [Donate]

Total Replies: 15


I'm in a complete disaster because of my wife (who I am now divorcing) and a series of financial mishaps. Since September I have to repeatedly take out between one and three pdls. The companies are:

CashNetUSA ($300)
MyPayDayLoan.com ($600)
East Side Lenders ($1000)

I have every intention of paying these off, but I can't have them keep taking the money out of my bank account. I'm in CA.

My questions are:

1) Even if the contract states that I can't revoke the ACH authorization, can I still do so?

2) My understanding is that I revoke the ACH authorization, close the bank account and reopen a new one? Is that correct?

3) What are the possible consequences of doing so? Just collections? How can I tell if they can (or will) garnish my wages?

Thanks,

Wil


1) Whether you can revoke an ACH is a matter of federal law and NACHA rules. The contract doesn't trump federal law.

2) That's best. These guys didn't care about the law when they made you the loan. Don't count on them to curl up and hide when you send the revocation. The revocation letter is YOUR proof that the debits were unauthorized if they get into your new account and you have to file fraud affidavits with your bank.

CashNetUSA is licensed but as a matter of policy they don't sue or even use arbitration. They sell the debt after a year or so, though, so no guarantees what the buyer will do. The others aren't licensed. They'll huff and they'll puff but won't take legal action.


lrhall41

Submitted by on Tue, 06/23/2009 - 19:44

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So, if I understand correctly, because the other two loaned more than $300 or aren't licensed, the loans were illegal? I see a way out of this then, I'm going to check with the department of corporations and my bank and see if I can't get this stopped. Unfortunately my payday is on Tuesday so I don't know if I'll have enough time.


lrhall41

Submitted by on Wed, 06/24/2009 - 08:53

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You can have your bank put a freeze/hold on your account so nothing can be taken out. Open another account...if your paycheck on Tuesday goes into the old account, the bank can either transfer it to your new account or lift the hold so you can take the money out yourself. Once your direct deposit successfully goes into your new account, close the old one.


lrhall41

Submitted by desperatelyseekingsanity on Wed, 06/24/2009 - 09:22

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my bank will not stop my ACH debits. They said that they can only "block" or "freeze" my account or any debits if they have a court order. they won't even put me on "deposit only", despite me begging them to do so so that I don't rack up returned item charges every time they attempt a debit. i can't close my account with a negative balance (which I have because of the multiple debits the payday loan companies have attempted that racked up over $1000 in return item fees from my bank). my bank manager said i have to continue to let them attempt to debit my account & continue to rack up returned debit charges even though I revoked my permission, and when I can afford to pay all of the return item fees (which will be thousands by then) then I can close my account. i have spoken to several people at my bank and they basically say "hang in there" or "my heart bleeds for you" and tell me until i can pay all these fees to close my account there is nothing they can do. the manager even suggested i take out ANOTHER payday loan to pay the bank charges to close my account! i feel broken and hopeless over this. i hope it works out better for you, because I'm screwed.


lrhall41

Submitted by on Thu, 06/25/2009 - 09:24

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You need to do what you can to bring the account positive and close it. I'm just starting to fight this mess and it looks like the first step is to close the account.


lrhall41

Submitted by on Thu, 06/25/2009 - 17:34

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Desparate times bring about desparate measures...go to another bank and open up a new account.

I went to another bank, opened up another account, and faxed the information on the new account to my employer all at the same time.

Until you bank charges you off, or you are listed negatively in the Chexs system you can open acccounts all over town.

The people you bank with sound as predatory as the PDL people that are preying on you. Go get another account, janeg, and I wish you the best of luck


lrhall41

Submitted by on Fri, 06/26/2009 - 06:53

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I would push the bank. I would keep going higher and higher up the chain of command (manager, than corporate, etc.) Tell them this is a fraud situation and demand your account to be blocked. I do not know if these loans are legal or what your state laws are concerning bank accounts but if it were me, I would keep going higher up.
PNC did that to me, I had almost $1,000.00 in overdraft fees and was reported to chex systems.


lrhall41

Submitted by bea2ls on Fri, 06/26/2009 - 06:57

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They are typically very helpful. They allowed me to set up payments - 4 payments every 2 weeks.


lrhall41

Submitted by on Fri, 06/26/2009 - 10:48

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I manage a bank and what your bank said to you is BS. At your request they MUST close your account--tell them there has been fraud on your account and that you will work out a payment plan with them once it is closed. I agree with going higher and higher up the chain of command...even the president to get this done as quickly as possible. They will probably report you to chexsystems once they close it, so open a new account elsewhere immediately. Once they have your account closed they should be able to work with you on repaying the money. Send them a set amount each month and they will be happy. Hope this helps


lrhall41

Submitted by fortmoore86 on Fri, 06/26/2009 - 11:27

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Journeesmom
You are correct,you can open a new account, but as soon as your new bank does a sweep and finds you in chex system, they will close your account. You will not be able to open another one. You need to arrangements to pay the bank the over draft amount.
Desperate times do not call for running out on obligations, but rather making affordable arrangements to take care of them.


lrhall41

Submitted by on Fri, 06/26/2009 - 11:40

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