Debt Management Plan for Payday Loans + ACH Revocation
Date: Tue, 10/03/2017 - 11:50
Hi everyone,
I'm wondering if anyone has had success using a debt management plan for payday loans? I currently have approximately $5,000 in payday loan debt. I'm on a debt management plan for my credit cards, which has been a really positive experience, and the promises that the debt management company for payday loans are making are very appealing. I'm working with DMCC Corp - dmcccorp
The one issue I'm having with them is that they are very adamant that I close my bank account and reopen a new account prior to enrolling to ensure that my payday lenders don't continue to debit my account. I did send ACH Authorization Revocation letters to each lender, as well as my bank, and received notice back from each lender that they had received my letter and would remove my ACH Authorization.
I don't want to close my bank account because I have direct deposit set up with 3 different jobs; I'm still waiting for a check to clear; and I have autodrafts set up for my monthly bills. As I'm sure you're all aware, starting a new bank account is really a pain.
My payday loan lenders are:
-SpeedyCash
-CashNetUSA
-CashCentral
-Rise Credit
-Check N Go
Is it necessary to close my bank account and reopen my account? And, if anyone has any experiences with debt management plans for payday loans, please let me know!
Thank you!
I'm wondering if anyone has had success using a debt management plan for payday loans? I currently have approximately $5,000 in payday loan debt. I'm on a debt management plan for my credit cards, which has been a really positive experience, and the promises that the debt management company for payday loans are making are very appealing. I'm working with DMCC Corp - dmcccorp
The one issue I'm having with them is that they are very adamant that I close my bank account and reopen a new account prior to enrolling to ensure that my payday lenders don't continue to debit my account. I did send ACH Authorization Revocation letters to each lender, as well as my bank, and received notice back from each lender that they had received my letter and would remove my ACH Authorization.
I don't want to close my bank account because I have direct deposit set up with 3 different jobs; I'm still waiting for a check to clear; and I have autodrafts set up for my monthly bills. As I'm sure you're all aware, starting a new bank account is really a pain.
My payday loan lenders are:
-SpeedyCash
-CashNetUSA
-CashCentral
-Rise Credit
-Check N Go
Is it necessary to close my bank account and reopen my account? And, if anyone has any experiences with debt management plans for payday loans, please let me know!
Thank you!
Actually, what they're saying
Actually, what they're saying is true. It's really important to close your bank account and reopen it.
No. They can't withdraw more
No. They can't withdraw more money from your bank account. Usually, debt management companies recommend closing bank accounts.
Usually debt management
Usually debt management companies would ask you to open a new account and close the old one. But I think you should verify first that the ACH revocation is done for all of your payday loan lenders. Then provide that details to your DM company and inform them that you need to keep that account open.
Let's see what they suggest..