question

All PDLs are illegal in the state of NY (unless it is backed by a bank like ThinkCash). So you do need to close or set to deposit only your checking account first. Then proceed to let them know you revoke ACH and that you know they are illegal. As far as ramifications, different lenders act differently. Some harass but can't follow through on their threats of for example serving you since they are illegal. But other lenders back down and send a PIF letters. A few are even known to send refunds if someone has overpaid, but that is the exception and not the rule. No legal ramifications will come no matter what the illegal lender says though. Your wage won't be garnished (make sure you revoke wage assignment from the illegal PDL which is voluntary and let your employer know), you won't be sued, you won't be arrested, charges won't be filed against you, etc... As far as your other loans, you can work out arrangements with them after. But do NOT give them your new checking account or access to a check from the new account or something. You can pay them up to the principal amount by mail through money orders or, worst case, those prepaid cards you can find at Walmart. And if they refuse to give you an address and only want ACH/electronic, guess what? They don't get their money until they work with you on your terms.

Legally, they can do nothing. What they might do is sell the loan to a debt collection agency. If that should happen, you can easily dispute the debt, if you should receive a telephone call from someone claiming to be a legal firm or collection agency do NOT admit to owing the debt. Simply tell them they are required by the FDCPA to send you a letter of collection via the mail within 5 days of their first call, and tell them you are timing them, then hang up, you will probably never hear from them again, however, if you do, we can cross that bridge when we come to it.
A side note, my suggestion if someone calls you who is claiming to be a law firm or a collection agency is to FIRST get as much information as you possibly can, their name, address, a direct phone number where they can be reached, write all this down as they are speaking, THEN tell them what I said above. The more information you can get from them, the better, this way when you file complaints against them with the FTC, BBB and your AG you will be able to make a more complete complaint. Sometimes we just have to be smarter then them, lol, which wouldn't be very difficult.