CashNetUSA sent me this email...how do I respond?
Date: Sun, 07/12/2009 - 08:21
Dear ***************,
We must inform you that we can not honor your request to revoke the ACH Authorization signed by you.
Our position is that there is nothing in state or federal law that allows a person to revoke an ACH authorization after he or she has received funds.
Under The Electronic Funds Transfer Act (“EFTAâ€), a lender cannot require a consumer to repay a loan by means of preauthorized electronic funds transfers as a condition to approving the consumer’s loan, 12 U.S.C. §913(1), 12 C.F.R. §205.10(e) .
The term “preauthorized electronic funds transfer†is narrowly defined by the EFTA to mean “an electronic funds transfer authorized to recur at substantially regular intervals.†12 U.S.C. §903(9), 12 C.F.R. §205.2(k). As explained by the Federal Reserve Staff in its official commentary to the EFTA, “Creditors may not require repayment of loans by electronic means on a preauthorized, recurring basis.†12 C.F.R. 205, Supplement I – Official Staff Commentary, at 10(e) (1) (Loan Payments).
Thus, the designation of a transaction as a “preauthorized electronic funds transfer†for purposes of the EFTA requires, at a minimum, that the authorization contemplate recurring transfers. CashNetUSA’s payday advance is a single payment loan product. It is only for the one-time transfer of funds to effect repayment of that loan (together with any related fees and charges) that CashNetUSA requests preauthorization. As a one-time transfer, it is not encompassed by the EFTA’s definition of “preauthorized electronic funds transfer.â€
And not being a preauthorized electronic funds transfer in this narrow sense, it is not within the scope of transactions targeted by the EFTA’s prohibition against requiring consumers to repay loans by such means.
This is the response I received regarding making final payment by money order:
Dear *********:
Please be advised that money orders/checks are the non- secured method of payment as they can take 30 days to process and post on your account. Additionally, they have the highest risk for being lost.
"Please be advised that money orders/checks are the non- secured
"Please be advised that money orders/checks are the non- secured method of payment as they can take 30 days to process and post on your account. Additionally, they have the highest risk for being lost."
roflmao!!! These guys are ridiculous! That statement is so full of baloney...they're trying to scare you to make sure that you pay by ACH.
How to respond...1) tell them that you have revoked their authorization to debit any and all bank accounts you have now or in the future. If they try to debit your account, you will dispute the charge as unauthorized and it will be returned.
2) Notify your bank and have them block any ACH transactions by CashNetUSA. Or, do a stop payment on it since "CNU only submits 1 time and is not a recurring transaction"... :roll:
3) Better yet, if you can close your account, do so.
If you can't pay the full amount, ask for an EPP plan. CashNet will work with you. CNU is legal and is pretty decent to work with.
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Thanks
Thanks! I actually am on an EPP with them, I've used them in the past and had no problem paying them back but then I got in over my head because of being out of work for a few months. I'm getting back on track and trying to get out of the PDL trap...I just need a few weeks to pay them, I'm not trying to get out of paying what I owe.
I will try that, thanks so much for your help.
Be advised under federal law you may at any time "revoke" an ach
Be advised under federal law you may at any time "revoke" an ach transaction agreement. They apparently need a refresher course in federal law. Federal Regulation E.
Contact your states attorney general about this matter and forward them a copy of the above email the CashNetUsa sent you.
An ach transaction is an agreement between "you" and "whomever" to allow them to deposit and withdraw funds from your account.
What Is the Legal Framework for ACH?
Participants in the ACH network must abide by the ACH Rules published by the NACHA. The ACH Rules define the required methods, procedures and record specifications for the processing of commercial ACH transactions.
Federal Regulation E places additional obligations on the RDFI and defines consumer rights regarding all electronic payments. The Uniform Commercial Code Article 4A (UCC-4A) places requirements upon ODFls originating wholesale credit (corporate) transactions as well as the RDFls that receive such entries. Federal Government payments must also conform with certain Codes of Federal Regulation commonly referenced in The Green Book.