How can I stop a payday lender from electronically taking money out of my bank or credit union account?
Step 1: Call and write the company
Step 2: Call and write your bank or credit union
Step 3: Stop payment
Even if you have not revoked your authorization with the company, you can stop an automatic payment from being charged to your account by giving your bank a “stop payment order.” This instructs your bank to stop the company from taking payments from your account. You can use this to submit a “stop payment order.” Here are the steps:
- To stop the next scheduled payment, give your bank the stop payment order at least three business days before the payment is scheduled. You can give the order in person, over the phone or in writing.
- To stop future payments, you might have to send your bank the stop payment order in writing. If your bank asks for a written order, make sure to provide it within 14 days of your oral notification.
- Be aware that banks commonly charge a fee for stop payment orders.
Step 4: Monitor your accounts
Tell your bank or credit union right away if you see a payment that you did not allow (authorize) or a payment that was made after you revoked authorization. Federal law gives you the right to dispute and get your money back for any unauthorized transfers from your account, as long as you tell your bank in time. You can use our .
Revoking or cancelling your automatic payment does not cancel your contract with the payday lender. If you revoke or cancel an automatic payment on a loan, you still owe the balance on that loan.
If you’re having a problem stopping a lender from taking money out of your account, you may want to contact your state regulator or . You can also submit a complaint to the CFPB online or by calling (855) 411-2372.