How to Block Payday Loans from Debiting My Account

How to Block Payday Loans from Debiting My Account

Payday loans can quickly get you out of a financial mess. However, a lender's automated debits from your account can sink you further into debt and significantly affect your life. Thankfully, there is now a way to stop payday loan lenders from automatically debiting your account. This is by using the steps below to revoke the ACH (Automated Clearing House) authorization, allowing lenders to debit your account.

Send your payday loan lender a certified letter

The first step in stopping automatic debits for payday loans on your account is sending a certified letter to your lender, blocking him/her from debiting the account. This letter can be referred to in the future if issues arise with revoking an ACH authorization. It is also prudent to call the lender to ascertain that he/she received your letter.

Send your credit union or bank a certified letter

You should also send a certified letter to your credit union or bank informing them about the revocation of your ACH authorization. This covers your bases for stopping all debits for your payday loan. This is especially important when you suspect a lender will reject the revocation of your ACH authorization.

Submit a stop payment order to your financial institution

A stop payment order is a formal request to your credit union or bank cancelling electronic payments that have not yet been processed. Ideally, the request is made not less than three business days before a scheduled payday loan repayment. It is wise to follow the order with a call to verify that it has been executed properly.

Once you have taken the above steps, closely monitor your accounts for unauthorized transactions. If you discover any money debited for payment of payday loans Guelph, contact your financial institution immediately. Nonetheless, remember that stopping the automatic debits from your account does not negate your loan. Consider a debt settlement plan to repay the loan.