Legal Lender Not willing to honor ACH Block
Date: Thu, 11/11/2010 - 09:22
At ApplyAdvanceAmerica.com, we understand how important it is to our customers to have access to payday advance funds as soon as possible after an advance is approved. That's why we fund our advances through an electronic funds transfer provided by the automated clearing house ('ACH') network. We also provide for repayment of advances via ACH.Under the EFTA, 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. 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.' 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). As a one-time payment, the repayment of a ApplyAdvanceAmerica.com advance is not encompassed by the EFTA's definition of 'preauthorized electronic funds transfer,' and is therefore permitted under the EFTA.
If you have any questions or concerns, our customer support team is available Monday through Friday from 8am to 5pm (CST), to help answer all your questions via phone, email or online chat.
I don't know what to do. I can't put an ACH block on my account because I am in the negative, and I CANNOT have this hit my accounttommorrow. My paycheck will be gone! Someone please help!
Go into the bank and speak directly to the branch manager, show
Go into the bank and speak directly to the branch manager, show them a copy of the ACH revocation, then have a hard debit block placed on your account. Next, file a complaint against these lenders for not complying with the EFTA regulation with your state attorney general's office and the FDIC, consumer protection.
You need to talk to your branch manager but with a negative bala
You need to talk to your branch manager but with a negative balance a block or closing account may not be an option. One thing you can do is have the bank change your account to deposit only. That will let you clear up the negative balance and keep your payroll check from going to PDL's. After you clear up the negative balance tomorrow, have your bank close your account and open a new one. Explain what has been going on and from my experience the bank will understand. The only way to get away from these creeps is to close your account. All a block will do is block the lenders name you give the bank, so many of these companies use multiple names.
Thanks for the advice. I hope I can prevent all this from going
Thanks for the advice. I hope I can prevent all this from going down. Unfortunately the banks are closed today so I will have to call them first thing in the morning and talk to them. I just want to get my paychecks back. I have lost so much money to these stupid companies in the past year it makes me sick. I will never put myself through this again. Lesson learned I suppose.
I can tell you from my experience with the 5 PDL's I had so far
I can tell you from my experience with the 5 PDL's I had so far I've received a paid in full letter and refund. You have to keep sending your demand letters, and push hard to get their attention. Your right with the bank being closed today and your check being a direct deposit your probably not going to be able to stop them from accessing your account. I know my check is direct deposit usually after midnight and when I woke get up in the moring for work their funds were already withdrawn. You need to go to the bank because you will need to sign paper work no matter which avenue you take.