Yes. You can get your payday lender stopped from taking money out of you account if you send a certified letter and a signed copy to your lender. This will stop automatic payments. It is possible to do this if you are trying out other financial options or feel that a lender has overcharged you. Try to head to the https://oakparkfinancial.com/ site for more details.
How do Payday Lenders Automatically Collect Repayments?
Payday loan companies in America use ACH Authorization, which automatically takes payments from your bank account for each repayment date.
This is legal and very efficient and practical method to collect all the repayments.
The lender has the ability to ‘ping’ every customer who owes them money. This allows them to collect potentially hundreds of thousands of dollars each day. It allows the borrower to have their collection taken automatically. There is no need for them to call up, send a check, visit the bank, or make a manual payment. It is business as usual, provided they have enough money in their bank accounts.
A recurring payment or automatic debit is a common way to repay loans. This includes personal, installment loans, and mortgages. Similar to a regular debit or standing order but which you can cancel at your own end, while an ACH Authorization needs to be cancelled at the bank or lender’s end.
Why would I want my payday lender to stop making automatic payments?
It is legal and perfectly normal for payday lenders to make automatic repayments. You will agree to this during your loan agreement. The lender will take automatic payments for 99 percent of the people.
You may wish to suspend automatic payments in certain circumstances.
The lender is not trustworthy – If the lender charges you too much, it may be time to have collections stopped immediately. Although there are strict regulations in the US, this shouldn’t happen. However, it was an issue more than five years ago.
Other debts or financial problems –If your debtors are requesting money, such as credit cards or loans, you can stop them from taking payments and you can use the amount owed (e.g $100 to $200). While you can stop payments, your loan may still be outstanding. You could also incur late fees if you fail to repay.
There are 4 ways to stop payday loan companies from debiting your account
1. Send a certified letter of intent to the Payday Loan Company
You can also send a certified mail to the payday lender. It will be legally binding, and it will confirm a stop in your bank account. This is something that the lender must adhere to by law.
2. Send a Certified Letter to Your Bank or Credit Union
You can ask the stop to be made on their bank account, no matter if it’s your US bank or credit union. This certified letter will confirm that the payday lender is no longer authorized to withdraw money from your account. This will prevent the lender from automatically taking money out of your account.
3. You must request your bank to submit a Stop payment order for a payday loan.
If the payment is more than 3 days away from its due date, you can request a stop. This would be three days before the scheduled repayment date.
This can be done by contacting your bank, or sending another letter.
4. Clear your account or get debt settlement
Payday loan companies cannot take money from your account without your consent. You can stop this by closing your account and paying it off. Once the debt has been paid in full, they will no longer be able to or will need to make any payments. Simple.
If you feel overcharged and want them to stop, this is a different situation. You will need to file a complaint to the OLA/SEC to escalate your case.
Debt settlement and debt management are options for those who are facing financial difficulties. This program is designed to help you resolve all your outstanding debts. This will allow your debt settlement provider to stop automatic payments. They will also send a small amount each month to all creditors, even if it is $5 or $10 per month until you become debt-free.
The debt settlement process takes all outstanding debts into consideration and then looks at your monthly income and expenses to determine how much you can afford each company. While it will require you to have a serious budget for the next few months, it can help alleviate the stress of automatic payment and not being behind in your debts.
