REVOKING ACH AUTHORIZATION

ACH withdrawals are voluntary and can be revoked at anytime.
Requiring them as the only form of payment accepted is a violation of Federal Law.

THANKS!!!!!!!!!!!! I read the article that you recommended and found it quite helpful.

According to the electronic funds transfer act, you can revoke ANY type of ACH transaction...legal or otherwise. Just give them PDL/CSO written notice once the account is closed.

Does the written notice need to be by registered mail or can it be by fax????

It is always best to use registered mail. Faxes get tossed by accident or on purpose all the time. In my office I am constantly picking up other peoples faxes

Is it legal for a bank to refuse to accept an ACH Notice of Revocation of Authorization Agreement?

What if you can't get an ACH Revocation agreement?

the letter is in the do-it-yourself section,and the watch out for section of this site.you can customize and print it out.

No its not legal for the bank to not allow you to stop a preauthorized ACH.

[quote]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.[/quote]

If your bank doesn't allow you , file a compliant with the The Office of the Comptroller of the Currency

Does anyone know if these laws have changed?

I have 2 or 3 companies that continue putting transactions through on one of my accounts. I've sent them letters revoking ACH authorization, requesting debt validation, etc, and have been 110% ignored. Today I called my bank, Bank of America, to talk to their fraud people about disputing these transactions because they are wracking up overdraft fees.

So what they tell me is that they can only dispute transactions that have actually posted, not transactions that were not processed due to insufficient funds. What????

I said "So even if they're operating illegally, there's nothing you can do to dispute these transactions?"

She replies "Yes, unfortunately the only thing we can do is get the vendor to admit they're processing these in error".

Long story short, unless the companies debiting my account admit to Bank of America that these transactions were in error. WTF? They're literally telling me that the second you give a company your checking information, they're welcome to try robbing you as much as they want to, as long as the transaction doesn't go through. They told me if I can't work it out with the vendor, I should call a lawyer.

Does anyone have specific legal code I can cite? It seems like there's something very wrong with this. I've talked to 3 different people at the bank and they're all telling me the same thing.

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Every ACH authorization for recurring transactions is required to included revocation information. Because the authorization is a contract, you can only revoke the authorization in the manner specified in the authorization itself.

Most authorizations will say, do it it writing, send to a specific address, send by traceable courier, etc. The bottom line is that if you try to revoke in any manner not specified in the authorization itself, then you have not revoked it. Even if you close the account, sure, you'll stop the transactions, but the authorization is still in full force.

Remember this...an properly executed ACH authorization is a contract between you and the merchant. By signing it, you agree to it's terms. All of it's terms, including how you can revoke it.

I wish you luck.
Solicitation removed!

[QUOTE=Anonymous;721376]Every ACH authorization for recurring transactions is required to included revocation information. Because the authorization is a contract, you can only revoke the authorization in the manner specified in the authorization itself.

Most authorizations will say, do it it writing, send to a specific address, send by traceable courier, etc. The bottom line is that if you try to revoke in any manner not specified in the authorization itself, then you have not revoked it. Even if you close the account, sure, you'll stop the transactions, but the authorization is still in full force.

Remember this...an properly executed ACH authorization is a contract between you and the merchant. By signing it, you agree to it's terms. All of it's terms, including how you can revoke it.

I wish you luck.
Solicitation removed![/QUOTE]
I think you are speaking about merchants, which is totally different than the discussion here.

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BofA can place a Stop Payment or Revoked Authorization on your account to prevent future attempts to withdraw funds. About prior withdrawals, however, they are correct - since no transaction occured, there is nothing to return to the vendor. Your NSF fee, however, is another matter. That was charged by BofA and - if they care about customer service - can be refunded by them directly. The second choice is to contact the vendor who caused the NSFs and have them refund all erronous fees.

My FI often requests that you attempt - in writing, certified return receipt - to get the vendor to acknowledge their error and refund the fees. If the vendor does not respond, then after two weeks, my FI will refund the fees.



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