PaycheckToday - Very urgent questions

my bank played games like that with me, i lost like $1,000.00. keep asking for someone higher up at the bank.. i have no idea what collections two means but i am sure it is just one of their games so i would focus on the bank for now. there are also ways to permanately close your account. speak with the fraud department of your bank if you have to.. they will take your money out, especially if they already recieved the authorization revoke. in fact they might even try to take more out now :( if they say that the account can reopen, trust me they will take money out and it will be reopened. i am not trying to scare you but this will happen, i would go back to the bank and demand to talk to the highest supervisor there. if they say no get corporate on the phone.

The bank says that no matter what the law in my state, if I signed an electronic contract giving permission for the debits that they cannot refuse to honor the payment.

I do have a supervisor watching my account tonight and she is going to call me if she sees anything from this company pending. Then I can dispute it or move my money to my savings account. I don't want to incur a bunch of NSF fees though.

Does anyone know what "COLLECTION TWO" means with Paychecktoday?

Has anyone who sent them a letter revoking the ACH authorization had them try to debit the account again anyway?

that is not true, your bank is lying. keep asking, you have the right to revoke any ACH transaction. denying you this is breaking federal law on the banks part. what bank is this? i am serious.. pretty much everyone here revoked authorization and had them attempt to debit, that is why we keep saying to secure the account.. do not listen to the supervisor at the bank, keep asking. i am not trying to panic you but they will take at least the minimum but since they recieved your letter to revoke they will probably try to take a lot more out. i really hope someone here backs me up because i really am serious right now.. i would go back to the bank.
collection two is probably some stage they have with their company.. it is not a legal company so they tend to make up stuff to seem official or to scare you. after your account is secure, i would work out a plan to pay them back.

My bank is USAA Federal Savings Bank. They specifically told me that they can't place hard debits or keep a closed account from reopening if a debit comes through.

They did say I could place a stop payment but it would cost me $29 and I'd have to do it every 2 weeks.

collection two doesnt really mean anything. its just another "level" of collections. basically the collection reps will be ruder and harder to deal with. as far as the bank you need to tell them they need to either "freeze" your account or make it deposit only. the stop payment wont be effective because they will keep trying to run it through using diffrent amounts, and diffrent methods. i basically told my bank if i incure thousands of dollars in nsf fees i wont be able to pay it back. thats when they were like ok we will just put a freeze on it. dont give up.

that's crazy, they would really take this out every two weeks! by federal law, you can revoke any ACH.. even if the loan was legal!! Did you speak to corporate? they are not going to leave your account alone until they get everything they want from you.
I hope someone else comes along, because there is actually a law stating that they have to let you revoke it.

i got this from another thread but i know there is a more detailed one:

"Regulation E

Sec. 205.10 Preauthorized

(c) Consumer's right to stop payment--(1) Notice. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer."

i would report this bank for not allowing you to.. someone there has to do this for you, like legally they have to.

PaycheckToday hasn't contacted me at all. They didn't respond in any way or attempt to contact me about this. They just changed my account online to say "Collection Two".

As far as the bank goes, they sent me this very scary letter last night (by email) saying that if I signed a contract with this Paycheck today either in person or electronically, and then try to stop the ACH transactions, that I am committing fraud and subject to 30 years in jail and a fine. They also said I would be in jeopardy of having all my accounts closed with their bank.

I have done nothing but follow their instructions exactly, and follow the advice I saw on this forum. I sent my letters, I notified the bank that I revoked authorization, I asked for the block. I filed complaints with the FTC, the NYS Banking Authority and the BBB.

It seems I am having more problems with my bank (and being frightened a good deal more) than paycheck today.

to be honest, the problems with your bank is more serious than paycheck today. collection two is just something on their end because they recieved your letter to revoke authorizations.. i am scared they will drain your account. legally they have no leg to stand on so they cannot sue or anything so they take up these shady tactics.
now for the bank, i hope someone else comes along asap.. this is a much more serious problem than paycheck today. legally they have to let you revoke the ach.. this is not fraud in anyway.. and personally i would perfer all of the accounts closed there. i would call your state's attorney general's office and your division of banking asap. the bank is not correct in this in anyway and i am sad to say that you will lose a lot of money if they keep this up :(i really hope someone with more experience can come along and help us out

i would print up the letter.also a copy of the electronic funds transfer act.then go see the manager and explain the situation.also have them explain the law that states what was said in the e-mail.they could get in BIG trouble if they are going to act this way.

thanks, paul.. it is the electronic funds transfer act that i had in mind.. i really do not know why this bank is being so stubborn!! this is federal law, i would really save that email and send a copy to the division of banking.

great idea bea2ls.that department would like to know a bank is violating federal law,and threatening the customer at the same time.

this posts really concerns me, as I have lost about $1,000 with PNC Bank a few years back because the companies kept attempting to debt and the NSF fees kept piling up. I got reported to chex systems and had to repay them the money. With these accusations it appears they will report the OP to chex systems under fraud, which will make it very difficult to get a new bank account.. i hope s/he can get this straightened out in time :(

she should as it sounds as if they are threatening that if she tries to stop the ACH debits.if i were her i would into legal options.the banking dept should be able to help her though.

My bank is in Texas and I live in NY. I bank strictly online with them. They can't drain my accounts because I moved my money to the new one but I am concerned about NSF fees. I will follow all of your instructions. Here is a copy of the letter they sent me:

We understand the level of concern and urgency surrounding your request for assurance and confirmation. It is with the same concern and urgency that we stress a few important notifications regarding payday/cash advance loans. Our records indicate that within the past 90 days, deposits and withdrawals have been made from the lender you now want to permanently block from account access. It is customary with these types of lending transactions that you would have signed an authorization (whether written or electronic) allowing the lender to debit your bank account. As a part of our investigation to process the stop payments on all lenders aforementioned, we will contact the lenders to request a copy of any such contracts. If we determine that the ACH debits in question were authorized, you will be putting your USAA membership at risk.

What this means to you is that you may become ineligible to purchase USAA products and that existing USAA accounts--including the new account recently opened--may be closed. Also, please understand that it is a federal crime to make a false statement to a financial institution and this is punishable by a fine of up to $1 million or imprisonment for up to 30 years, or both. Further, the lenders have the ability to bring action against you for recourse, if they have not been contacted to satisfy the debt owed in other ways.

Finally, revocation of authorization will not stop these lenders from attempting to debit your account. If the account is closed prior to contacting the merchants to make other arrangements, and they attempt to debit your account, it may cause the account to reopen. This action could cause overdraft as well as fees that will not be eligible for dispute or reimbursement. The only way to permanently block these types of lenders from accessing your account is through the merchants; we only have the ability to temporarily block their access to the account through stop payments.

See what I mean? I feel like they are more dangerous than the PDL company!

yea, they are right about one thing though.. revoking an ACH will not stop them. This is why we recommend placing a hard block on the account and than permantely closing it. This can be done, no matter what they claim. It legally cannot be done and this is not at all fraud. Even for legal lenders, you still can revoke ach withdrawls!
Legally the bank really has to.. I would call the Texas Division Of Banking as well on them to be honest, but the bank legally has to revoke the autroization. I have no idea why they are being so stubborn with you! :(

hi,

i believe i received that same message on my paychecktoday account and nothing came out of my bank account but maybe it's because i did call them back and they worked something out with me where they didn't charge me any finance fees and whatever i sent them was towards the principal. I paid them using a walmart card.

paychecktoday really might not debt again.. my guess is that you got lucky though :(
but my main concern is that her bank is breaking the law and is threatening her.

To make sure I have it straight before I call them again:

My bank HAS to place a hard debit block no matter what they have said?

They also MUST follow my ACH revocation against the PDL company, even though they said they couldn't?

Telling me that it's fraud, that I could be jailed/fined/kicked out of the bank is illegal?

I do want to follow through if this is all true because it's more likely my bank is screwing me at the moment.

I am supposed to call later today to make sure nothing is pending for PaycheckToday for tomorrow's date. I hope I really did get lucky and they will leave me alone.

i would call divison of banking to answer those questions.. perhaps offer to forward them that email. i know it is ilegal to not allow you to revoke ACH, and i know it is possible for them to put a hard block on it.
Your bank is breaking federal laws by not allow to revoke ACH but revoking it is not the answer, they have to let you put a hard block it. I am not sure if that is the law but all other banks do it, I have no idea why they are being so stubborn :( :?:

Go to a new bank ASAP!. Tell them you are going to a more customer friendly bank.

once this is settle, i really would leave this bank forever.. please keep us posted, i hope everything works out for you

Paycheck today just changed my account status to "DENY NEW". I wonder what is going on with them. I guess I will find out tomorrow.

I also called the Texas Banking Authority and they said I had to call another place because my bank is a Federal bank, not a National one.

please keep us posted, karen! the bank is a federal bank, they really should know the laws!! :evil:
did you call the other place?
i would not worry about the status changes on paycheck today. illegal companies really do make up terms and status and i would not worry about it honestly. they may call you today, they may not.. sometimes they do right away, sometimes it takes awhile but if they do honor the ach revoke, than the loan is considered defaulted already. please keep us posted.

Since you bank with USAA, I assume you have your car/house insurance with them. I would fax/e-mail them a copy of the electronic regs. stating that you can revoke ACH anytime, and that a company cannot require you to pay by electronic means. I would also tell them you are going to cancel your accounts with them.
I would never deal with an internet bank again. Find a local bank that has internet bill paying, transfers etc. You need to be able to speak to managers one-on-one when a situation such as this arises.
I have my car loan, car insurance and house insurance with them. They've been solicting me for banking. I just tell them I prefer to have access to a "physical" bank in my state.
I would cease all business with them for putting you through this stress.

i agree, aubrey
i really hope everything worked out with the poster and she keeps us posted :( i worry that they already took her money out

I am going through the same thing with paycheck today. they have not responded in any way. The BBB is still waiting for a response as well. If you have any luck with them please post