Before you close your bank account due to payday loans eating away at your paycheck, please read this.
There are several banks with different policy regarding ach transaction so it is better to go in person and talk to the branch manager. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. Banks having policies regarding ach transaction sometimes are permitted to go ahead and force open closed accounts if any ach transaction takes place within a certain time frame after the account is closed.
Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. If your bank does have this policy, tell them your situation. Don’t be embarrassed. You can ask your bank to put your account on deposit only, by this way you will be putting hold on your ach account before they are closed and your bank can do one of this any kind of negative answer would not be entertained you should let them know.
It is very difficult to leave your bank account open because this payday loan companies have different ways to take money out from your account. As I told you it would not be safe to keep your account open as these companies can produce paper checks and run them through your account without your permission. So closing the account is the best solution to prevent charging your account from this payday loan companies.
It is always safe and suggested that it is better to consult the attorney general or department of financial institution before you close your account. To make sure you are not causing more headaches, some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud.
This entry was posted on Tuesday, March 15th, 2011 at 3:01 pm and is filed under Payday Loan. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.