How Can I Stop Payday Loans From Debiting my Account?

Posted on November 10, 2020 in Banking

You can legally stop automatic payments on a payday loan by revoking the Automated Clearing House (ACH) authorization that gives a payday lender permission to electronically take money out of your bank account or credit union. Read our four step guide below that will provide you with the full details on how to block payday loans from debiting your account.

How to Legally Stop Automatic Payments on a Payday Loan

1. Send a Certified Letter to the Payday Loan Company

By sending a certified letter to the company to block payday loans from debiting your account, you will have traceable evidence of your communication. You can then refer back to this writing if needed at a later date if there are any issues with revoking ACH authorization for the payday loan company to electronically debit your account any further. When pursuing this first step regarding how to stop paying payday loans legally, it is also a good idea to follow up on your ACH revoke letter with a phone call directly to the company to ensure they have received your communication.

2. Send a Certified Letter to your Bank or Credit Union

Next, after you send written communication to your payday lender to block them from debiting your account, you will also want to write your bank or credit union to inform them that you have revoked authorization. Let them know that your payday lender no longer has permission to take automatic payments from your bank account, and you have revoked the ACH authorization that let them debit your account via electronic funds transfer. This is the best way to cover all your bases to stop payday loans from debiting your account, especially if you have any reason to believe that the payday loan organization will not accept the revoked ACH authorization.

3. Submit a Stop Payment Order on a Payday Loan

Similar to revoking ACH payment authorization, a stop payment order on a payday loan is a formal request you can make to your bank or credit union to cancel an electronic payment that has not been processed yet. This request should be made at least three business days ahead of the next scheduled payment on a payday loan, and can be specific to one or more future payments. Like with the first two methods above to stop paying a payday loan legally, it will be most effective to provide your bank with a written follow up notice. From there, you will also want to give the bank a phone call to verify proper execution of the request to stop payment on a payday loan.

4. Monitor for Unauthorized Transactions

Lastly, after you’ve followed the steps above for how to block payday loans from debiting your account, keep a close eye on your bank account for an unauthorized transaction. If you see an unauthorized payday loan amount debited from your account it’s important to act quickly. If you have already revoked ACH payment authorization you will want to contact your bank or credit union as soon as possible. You have the legal right to dispute any unauthorized electronic debit transfers out of your account, so long as you immediately report the charge.

Once you get in touch with your bank, you’ll want to contact the payday lender next to stop them from continuing to debit your account moving forwards. If you’re having any trouble with how to revoke ACH payment authorization, or how to stop automatic electronic debts overall, don’t hesitate to get a free, no-obligation debt consultation today.

How Else Can you Stop Paying Payday Loans Legally?

If you’re no longer able to manage your payday loans and need to know how to legally stop payday loans from debiting your account, you may be ready for debt relief. It’s important to be aware that stopping automatic withdrawals does not mean that you do not have to repay the loan. TurboDebt, with over 2,000 5-star reviews on Google, and a 5-star rating on Trustpilot, is one top rated company that can help if you’re in trouble with payday loans, or if you need further assistance regarding how to stop automatic payments on a payday loan.

The TurboDebt team is highly aware that even the best payday loans may take advantage of an ACH withdrawal, which is when funds are electronically pulled directly from a savings or checking account for the purpose of making a bill payment. Because an ACH debit happens when the payee requests to draw funds from the payer’s account via the ACH network, it’s vital to know what you can legally do to stop payday loans. TurboDebt’s team of debt relief experts will help you stop the payday loan cycle, and can stop automatic debits and electronic payments from hitting your bank account

Final Thoughts: How can I prevent a payday lender from electronically withdrawing funds from my bank or credit union account?

With a tailored debt relief program, you can have all of your debts rolled into one package with a low monthly payment. TurboDebt can assist with a sample letter to revoke ACH debit authorization, or even help you send a stop payment order to any payday lenders that are currently harassing you. You can even include credit card debt and other kinds of debt into your relief package as you work to stop paying payday loans legally.

see how much you can save compared to only paying the minimum balance after you stop payday lenders from debiting your account
Here’s an example of how much you can save by legally stopping a payday lender from debiting your account

In the debt relief process, TurboDebt will work with you to help restructure payment terms with your lenders. Remember, there is no government help with payday loans, but with a company like Turbo you can get assistance. Once you stop a payday loan payment you can reduce your fees by combining all of your accounts. This is a great way to make bigger payments, reduce your overall debt, and finally put an end to the collections harassment and stop payday loans legally.

If you need more assistance regarding how to get out of payday loans, be sure to contact us.

Legal disclaimer

The content on this page provides general consumer information. It is not legal advice or regulatory guidance. 

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