Tried doing ACH Revocation

OK - I am just gonna say this once - You can not revoke ACH over the phone or via chat - You have to go into the bank, you want to talk to a manager.. You want to give them copies of your ACH revocation letters and you need to cover your ass by closing your account and opening a new one not linked in any way!! That is the only way to completely protect yourself.

Stop payments will not help you if they attempt to debit under another name which they will, it will not protect you when they try to debit for different amounts which they will...

Ok thanks a bunch I am new to this and will do this first thing in the morning, I also got a weird response to one of the letters I sent

STEVE,

THIS IS AN EXPLAINED LOAN FROM 01/11/13 FOR $300.00 HE HAS PAID $450.00 IN SERVICE FEE’S TO DATE. HIS NEXT DUE DATE WAS SCHEDULED FOR 04/26/13 WHICH I CHANGED UNTIL 04/29/13 TO SEE WHAT YOU WANTED TO DO.



Liz
Prestige Group customer service for Vince Enterprises
Telephone#: 877-878-2700
Fax#: 877-878-4700 (ATTN: Liz)
Office Hours: Monday – Thursday 8AM- 5:00 PM
Fridays 8AM – 4:00 PM Central Standard Time
Email: CustomerService@PRESTIGEGM.COM
Thank You. Have a fabulous day!

I don't believe you were supposed to be copied on that.. That looks internal.. It appears that they have moved your due date to the 29th.. while they give them selves time to respond.. I would keep handy and if you have to resend them something - I would also include Steve in the loop as well as Liz and Customer Service. LOL

They have nicely admitted that you have over paid on the $300 principal by $150 though for you... LOL

Keep us posted on the bank -- BOA -- not always the easiest to work with!

Thanks alot HELPinAZ you have been the most helpful person on this site and the battle has just begun, hahaha.

Glad to help - tell us how it goes at the bank.. that is very important to get done right away.. take your copies with you of the ones you have already sent out..

OK will do, any advice on what to say if they tell me the same thing as the online teller

Remind them of the reg E - it is federal law that you be allowed to revoke ACH authorization - It is your right - also there are other banks that would be glad to have you open a new account with them!!

Who are you talking to when you go to bank - ask for a manager.. if they refuse I would consider closing my account and go to another bank - BofA seems to have the largest problem doing what they are supposed to... You do have to send to the PDL also! you are not stopping individual payments you are revoking ACH authorizations fully.. not sure why they are not understanding..

Went into BOA today and tried revoking ACH and showed them my letters I sent to all my PDL and had no success. They keep telling me that they can do a stop payment for 30.00 and I keep trying to explain that i am not doing a stop payment im tryna do an ACH revocation. They keep telling me the same thing that I have to contact the PDL and tell them to remove it, I even mentioned that by law according to REG E that I have the right to revoke it but it seems like they keep ignoring me when I bring it up, any advice would help

Good - let us know how it goes when you go back to the bank.. remember to talk to a manager only and then keep going up the chain or close your account once and for all with BofA and go some where else...

Yes I have sent all the PDL the ACH revocation letter before I went to the bank

No luck again at BOA, spoke to a the branch manager and explained my situation nut she said that I need a document from a lawyer to do ach revocation.

WHAT? I would close my account and take my business some where else.. You need nothing from a lawyer to do an ACH authorization revocation .. She is nuts... It is your right..why are you are doing it is none of their business - you are just doing it.. You have the right to decide if you allow people in your bank account and if you don't want them in their any more it is your right.I am searching BofA's site for the info as soon as I find I will put here for you... But I would seriously think about changing banks!

Yeah I just closed my account but she said if they try and take money again my accounts gonna pop.back open, I was frustrated so I said I don't care close it, she even said I can't put my account on deposit only

I couldn't find on their site - I am sure it is in their terms and disclosures, it has to be.. bu this might help to print out and take with you:

907. Preauthorized transfers
(a) A preauthorized electronic fund transfer from a consumer's account may be authorized by the consumer only in writing, and a copy of such authorization shall be provided to the consumer when made. A consumer may stop a preauthorized electronic fund transfer by notifying the financial institution orally or in writing at any time up to three business days preceding the scheduled date of such transfer. The financial institution may require written confirmation to be provided to it within fourteen days of an oral notification if, when the oral notification is made, the consumer is advised of such requirement and the address to which such confirmation should be sent.
(b) In the case of preauthorized transfers from a consumer's account to the same person which may vary in amount, the financial institution or designated payee shall, prior to each transfer, provide reasonable advance notice to the consumer, in accordance with regulations of the Board, of the amount to be transferred and the scheduled date of the transfer.
[Codified to 15 U.S.C. 1693e]

A stop payment order applies only to one transaction, the May payment of your life insurance premium, for example. ACH rules require that once a payment has been stopped and returned the stop payment expires. However, if the account is subject to Reg E, the consumer's stop payment order - "ACH authorization revocation" has no expiration under the regulation. In my opinion, that trumps the NACHA (ACH) rule, but it does only apply to a consumer account and only to one transaction (and any resubmission of that transaction). To revoke an authorization for a series of recurring ACH items, the receiver (your customer) must notify the originator that the authorization is revoked. Once notified of the revocation, the originator has no authority to submit further transactions. If the receiver is a consumer and notifies you (the receiving depository institution or RDFI) that he or she has revoked or is revoking the authorization, you are required by Reg E to block all future transfers under that authorization. You are allowed to require your customer to provide documentation of the revocation (such as a copy of it) within 14 days and if you don't get the documentation, you are permitted to lift the block on future transfers under the original authorization until you do get a copy of the revocation.

HelpinAZ I wish I could take you into the bank with me, hahaha its gets me frustrated when I read about other peoples banks on this forum that were more than willing to help them with no problems.

She sounds like and idiot.. It is called a hard block for a compromised account..I bank at Chase they did in a matter of moments - I was on the phone with a personal banked and got it done, they had my new account open before I even got to the branch. All I had to do was tell them if there was anything out on the old that I wished to allow through and to move all funds to the new account.. In a few days they moved my DD for me to the new - monitored the old for 30 day and shut it down. BofA - the reason I left there about 7 years ago is they put a 3 day hold on a cash deposit - yeap I said Cash Deposit!!!

I can't believe the BS Bank of America is putting you through. All you have to do is revoke ACH with illegal lenders as indicated in their (illegal) loan documents, usually by FAX or email 3 days before next scheduled debit. If you revoke ACH they must stop debiting your account. Then you immediately notify your local branch, I like fax plus a certified letter just to be sure. There's no fees, this is not a stop payment, it's a an ACH revocation. Also some banks say the only way is to close the account, BS! however since PDL are shady companies they may still try to debit your account, and overdraw it. That said once ACH is revoked, if they take money...the bank must investigate and reverse the transaction. It happened to me, and within a week funds were returned. When an ACH is returned, your bank is asking the PDL for their money back since they reimburse you first and then ask PDL. Believe me PDLs do not want to have banks on their backs asking for refund of fraudulent ACH debits.

@ Matt you are responding to a post from 4 months ago - and a lot of banks are this way if you don't do the steps the right way!!

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February 23, 2013
Major Banks Aid in Payday Loans Banned by States
By JESSICA SILVER-GREENBERG

Major banks have quickly become behind-the-scenes allies of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent.

With 15 states banning payday loans, a growing number of the lenders have set up online operations in more hospitable states or far-flung locales like Belize, Malta and the West Indies to more easily evade statewide caps on interest rates.

While the banks, which include giants like JPMorgan Chase, Bank of America and Wells Fargo, do not make the loans, they are a critical link for the lenders, enabling the lenders to withdraw payments automatically from borrowers’ bank accounts, even in states where the loans are banned entirely. In some cases, the banks allow lenders to tap checking accounts even after the customers have begged them to stop the withdrawals.

“Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn’t operate,” said Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project, which works with community groups in New York.

The banking industry says it is simply serving customers who have authorized the lenders to withdraw money from their accounts. “The industry is not in a position to monitor customer accounts to see where their payments are going,” said Virginia O’Neill, senior counsel with the American Bankers Association.

But state and federal officials are taking aim at the banks’ role at a time when authorities are increasing their efforts to clamp down on payday lending and its practice of providing quick money to borrowers who need cash.

The Federal Deposit Insurance Corporation and the Consumer Financial Protection Bureau are examining banks’ roles in the online loans, according to several people with direct knowledge of the matter. Benjamin M. Lawsky, who heads New York State’s Department of Financial Services, is investigating how banks enable the online lenders to skirt New York law and make loans to residents of the state, where interest rates are capped at 25 percent.

For the banks, it can be a lucrative partnership. At first blush, processing automatic withdrawals hardly seems like a source of profit. But many customers are already on shaky financial footing. The withdrawals often set off a cascade of fees from problems like overdrafts. Roughly 27 percent of payday loan borrowers say that the loans caused them to overdraw their accounts, according to a report released this month by the Pew Charitable Trusts. That fee income is coveted, given that financial regulations limiting fees on debit and credit cards have cost banks billions of dollars.

Some state and federal authorities say the banks’ role in enabling the lenders has frustrated government efforts to shield people from predatory loans — an issue that gained urgency after reckless mortgage lending helped precipitate the 2008 financial crisis.

Lawmakers, led by Senator Jeff Merkley, Democrat of Oregon, introduced a bill in July aimed at reining in the lenders, in part, by forcing them to abide by the laws of the state where the borrower lives, rather than where the lender is. The legislation, pending in Congress, would also allow borrowers to cancel automatic withdrawals more easily. “Technology has taken a lot of these scams online, and it’s time to crack down,” Mr. Merkley said in a statement when the bill was introduced.

While the loans are simple to obtain — some online lenders promise approval in minutes with no credit check — they are tough to get rid of. Customers who want to repay their loan in full typically must contact the online lender at least three days before the next withdrawal. Otherwise, the lender automatically renews the loans at least monthly and withdraws only the interest owed. Under federal law, customers are allowed to stop authorized withdrawals from their account. Still, some borrowers say their banks do not heed requests to stop the loans.

Ivy Brodsky, 37, thought she had figured out a way to stop six payday lenders from taking money from her account when she visited her Chase branch in Brighton Beach in Brooklyn in March to close it. But Chase kept the account open and between April and May, the six Internet lenders tried to withdraw money from Ms. Brodsky’s account 55 times, according to bank records reviewed by The New York Times. Chase charged her $1,523 in fees — a combination of 44 insufficient fund fees, extended overdraft fees and service fees.

For Subrina Baptiste, 33, an educational assistant in Brooklyn, the overdraft fees levied by Chase cannibalized her child support income. She said she applied for a $400 loan from Loanshoponline.com and a $700 loan from Advancemetoday.com in 2011. The loans, with annual interest rates of 730 percent and 584 percent respectively, skirt New York law.

Ms. Baptiste said she asked Chase to revoke the automatic withdrawals in October 2011, but was told that she had to ask the lenders instead. In one month, her bank records show, the lenders tried to take money from her account at least six times. Chase charged her $812 in fees and deducted over $600 from her child-support payments to cover them.

“I don’t understand why my own bank just wouldn’t listen to me,” Ms. Baptiste said, adding that Chase ultimately closed her account last January, three months after she asked.

A spokeswoman for Bank of America said the bank always honored requests to stop automatic withdrawals. Wells Fargo declined to comment. Kristin Lemkau, a spokeswoman for Chase, said: “We are working with the customers to resolve these cases.” Online lenders say they work to abide by state laws.

Payday lenders have been dogged by controversy almost from their inception two decades ago from storefront check-cashing stores. In 2007, federal lawmakers restricted the lenders from focusing on military members. Across the country, states have steadily imposed caps on interest rates and fees that effectively ban the high-rate loans.

While there are no exact measures of how many lenders have migrated online, roughly three million Americans obtained an Internet payday loan in 2010, according to a July report by the Pew Charitable Trusts. By 2016, Internet loans will make up roughly 60 percent of the total payday loans, up from about 35 percent in 2011, according to John Hecht, an analyst with the investment bank Stephens Inc. As of 2011, he said, the volume of online payday loans was $13 billion, up more than 120 percent from $5.8 billion in 2006.

Facing increasingly inhospitable states, the lenders have also set up shop offshore. A former used-car dealership owner, who runs a series of online lenders through a shell corporation in Grenada, outlined the benefits of operating remotely in a 2005 deposition. Put simply, it was “lawsuit protection and tax reduction,” he said. Other lenders are based in Belize, Malta, the Isle of Man and the West Indies, according to federal court records.

At an industry conference last year, payday lenders discussed the benefits of heading offshore. Jer Ayler, president of the payday loan consultant Trihouse Inc., pinpointed Cancún, the Bahamas and Costa Rica as particularly fertile locales.

State prosecutors have been battling to keep online lenders from illegally making loans to residents where the loans are restricted. In December, Lori Swanson, Minnesota’s attorney general, settled with Sure Advance L.L.C. over claims that the online lender was operating without a license to make loans with interest rates of up to 1,564 percent. In Illinois, Attorney General Lisa Madigan is investigating a number of online lenders.

Arkansas’s attorney general, Dustin McDaniel, has been targeting lenders illegally making loans in his state, and says the Internet firms are tough to fight. “The Internet knows no borders,” he said. “There are layer upon layer of cyber-entities and some are difficult to trace.”

Last January, he sued the operator of a number of online lenders, claiming that the firms were breaking state law in Arkansas, which caps annual interest rates on loans at 17 percent.

Now the Online Lenders Alliance, a trade group, is backing legislation that would grant a federal charter for payday lenders. In supporting the bill, Lisa McGreevy, the group’s chief executive, said: “A federal charter, as opposed to the current conflicting state regulatory schemes, will establish one clear set of rules for lenders to follow.”