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Bank Accounts - Pre-Authorized Payments


I canceled a product after the free trial period, but the merchant continues to charge my checking account every month. How can I stop this?

First, contact the merchant in writing. Ask them to cancel both the service and the charges to your checking account. Send a copy of this letter to your bank. You should also notify the bank that these charges are no longer authorized.

The bank may require you to complete an affidavit.

You may also want to ask your bank to place a stop payment on the transaction. However, generally the stop payment order is only good for one transaction.

You need to notify your bank within three business days before the transaction is scheduled to be made. Notice may be made orally or in writing; however, when it is made orally, the bank may require you to provide written notice within 14 days. If you don't provide written notice within 14 days, the oral stop payment order ceases to be effective.

My checking account has unauthorized monthly charges/withdrawals from a merchant. The charges started eight months ago, but I just noticed them. The bank won't reverse the charges. How can I stop this?

First, contact the merchant in writing. Ask them to cancel both the service and the charges to your checking account. Send a copy of this letter to your bank. You should also notify the bank that these charges are no longer authorized.

The bank may require you to complete an affidavit.

The amount of liability is determined by how much notice you give to the bank. To avoid liability for subsequent transfers, you must report any unauthorized electronic transaction that appears on your checking account statement within 60 calendar days of the bank's transmittal of the statement.

As for the eight months of unauthorized charges/withdrawals, you will have to address those directly with the merchant.

I closed my checking account, but the bank continued to accept the recurring monthly charges from my insurance company. Why doesn't the bank reject these charges?

Generally, it is your responsibility to cancel all recurring monthly charges with a merchant before closing your checking account.

The original agreement to charge the account was made between the consumer and the party making the withdrawals. Because the bank was not a party to this agreement, it cannot cancel it.

Last year I gave a vendor/merchant authorization to make a monthly automatic withdrawal from my checking account. Now I have canceled the service, but my bank won't stop the withdrawals. What can I do?

Write directly to the vendor/merchant and ask them to stop debiting your checking account. Provide your bank with a copy of this letter. And notify your bank that these charges are no longer authorized.

You can contact your bank and place a stop payment order on the transaction. However, generally the stop payment order is only good for one transaction.

You will need to notify your bank within three business days before the transaction is scheduled to be made. Notice may be made orally or in writing; however, when it is made orally, the bank may require you to provide written notice within 14 days. If you don't do so, the oral stop payment order ceases to be effective.







Copyright 2007 by Mark McCracken , All Rights Reserved