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Feb 2013

How to Tell Your Bank to Stop Payday Loan Automatic Withdrawals

Posted by / in Before Bankruptcy, Weekly Posts / 154 comments

How to Tell Your Bank to Stop Loan Automatic Withdrawals

Stop those automatic withdrawals! I usually tell people that when we first talk. Even before we file the bankruptcy.

Internet payday loans usually set up automatic withdrawals when you get the loans. Traditional finance companies, like Mariner and One Main, often do, too.

When you try to stop them, people tell me it’s hard to get their banks to help.  (Today’s  New York Times said the same thing.  The Times says the banks don’t cooperate because the banks love those overdraft fees.)

You can stop automatic withdraws

Banks will verify your signature on a check to match your signature card. But ACH automatic withdrawals just sail through.

Stopping those Automatic Withdrawals Shouldn’t be Hard

Think about it. Your bank has two big jobs.

     1. Pay people you want to pay.

     2. Don’t let anybody else take your money   

The bank tries to do that on paper checks, by comparing your signature on the check with your signature card.

But when someone posts an ACH transaction on your account, as far as I can tell, nobody at the bank looks at anything.  (That’s one reason these internet payday loans are so dangerous.)

Legal payday loans in Virginia are not allowed to set up automatic withdrawals.  But many internet payday loan companies know they are illegal and don’t care.

You Have the Right to Stop to Automatic Withdrawals

The Electronic Funds Transfer Act give you important rights to protect your bank account.  (Regulation E, from the Federal Reserve, also tells your bank that you have those rights.)

You have the right to STOP a pre-authorized electronic transfer up to three days before the transfer is scheduled by notifying your bank.  You can notify them orally or in writing–obviously writing is smarter.  Keep a copy.

You should notify the payday loan people too.  That’s not likely to stop the internet payday lenders. (It usually stops legitimate finance companies.) But, either way it improves your legal position against your bank.

If the Money Comes Out Anyway, The Bank Has to Put it Back

You then have to notify the bank within 60 days if they allow the money to come out anyway. (You obviously don’t want to wait 60 days.)

The bank then has ten days to investigate and one more day to put the money back.  (Even if the bank can’t get the money back, they still have to reimburse you!) If they don’t, you can sue them.  You can sue for the money you lost, which would include overdraft fees.  (A quarter of people who take out payday loans get hit with overdraft fees when the payments come out.) Plus a penalty of $100 to $1000.   Plus the bank has to pay your lawyer.  (Three times the money you lost if the court says the failure was willful.)

I’ve threatened it.  But I’ve never had to sue under the Electronic Funds Transfer Act. 

Stopping the Automatic Withdrawals is not a “Favor” 

I hope what I’ve told you helps your attitude when you tell the bank to stop a payday loan automatic withdrawal.  You are not begging for a favor–even if that’s the way they treat you.  You are asking them to do their main job–keeping your money safe! And you have rights under Federal Law to sue them if they don’t do it!

More Info from the Consumer Finance Protection Bureau

Here’s more information from the Consumer Finance Protection Bureau. 

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Robert Weed has helped fifteen thousand people file bankruptcy in Northern Virginia. Robert Weed is a frequent panelist and speaker at the meetings of the National Association of Consumer Bankruptcy Attorneys. He is one of Northern Virginia’s most experienced personal bankruptcy lawyers. As an expert on changing consumer bankruptcy laws, Robert Weed has been interviewed on local and national TV and quoted in newspapers across the country.

  • Marie Cabrera

    May 1, 2013, am31 9:35 AM

    Can an online Pay Day company illegally withdraw funds from my checking account even when they did not loan me money or denied my loan? I am worried since they have all my banking information. I am in California and the loan company is in Canada. Thank you!

    • Robert Weed

      May 1, 2013, am31 10:03 AM


      Be sure to run down to your bank if you see the online payday loan people taking money out. Obviously you don’t know for sure this online payday loan outfit is really in Canada rather than Sierra Leon.

      You should be worried about giving your banking info to people on the internet that’s not somebody you know is real.

      But you have good rights with your bank if you complain right away if money comes out.

  • Ali

    June 4, 2013, pm30 9:44 PM

    I have a question regarding what I just read on your blog. Can a payday debit consolidation company keep withdrawing funds from your bank account if you change your bank account number and any debit cards associated with that old account? They do NOT have my signature on any checks or contracts. Thank you for your time and reply!

    • Robert Weed

      June 5, 2013, am30 10:21 AM


      Changing the account number should fix the problem. Good luck!

  • Matthieu Guibert

    June 5, 2013, am30 12:40 AM

    If I read the Electronic Funds Transfer Act. correctly, does it mean that if I write to my bank, certified mail, and tell them to stop a pre-authorized ACH payment of $123 they must stop it or reimburse me?. Also my bank claims that if the PDL company see their ACH denied they resubmit a new ACH for a different amount, and the bank cannot do anything. They tell me to close my account…but it seems I can fight the ACH and get my money back if my bank fails me. Thanks for the info.

    • Robert Weed

      June 5, 2013, am30 10:20 AM


      I’m with you. The bank can say it’s your problem, but the law puts the responsibility on them. Now closing your account may actually be the only way to stop it. But the bank is supposed to protect your account.

  • Josh Carter

    June 19, 2013, pm30 7:04 PM

    I have two payday loans and they are the devil. I am overdrawn in my current checking account and called to close the account today and told them i would be in tomorrow to pay the negative balance. I was told even though i closed the account that my bank would still pay the ach debits!! How can they do this when i want the account closed? “we pay all transactions that come in” So i set up for both payday loans totally $1,600 dollars to come out and be paid in full. If they pay them in full it means i am out of pay day loan debt but still out the Bank $1,700 buck which i can pay back in a month or two in full! I have no one to borrow money from and my credit is shot! I feel like i am at a dead end! However if they do pay them i won’t have 400.00 every 2 weeks thrown out the window! I can put that and more towards the negative account balance in my checking account. Did i just totally make a mistake? Help..

    • Robert Weed

      June 19, 2013, pm30 7:58 PM


      Two things.

      First, you made a big mistake getting those payday loans–that’s right.

      Second, what I say in this blog is true. If you tell your bank those withdrawals are NOT authorized, and tell the Payday loan people (who will of course ignore what you say) to stop, then it is your bank’s legal responsibility, not yours, if the money goes out. You’ve got to stand tall, be insistent, and NOT let the bank BS you. The law is totally on your side on this. They cannot “pay all transaction that come in” unless that transaction is SIGNED with your signature. That’s what they do; but it’s not what the law says they are supposed to do.

      Be real clear, do what I say in my blog, and if it doesn’t work, get a lawyer.

  • Charles

    July 29, 2013, pm31 6:36 PM

    Once I close my account can they file a felony warrant for my arrest for some type of fraud?

    • Robert Weed

      July 29, 2013, pm31 7:03 PM


      Payday loans act like they have super-hero powers or something. They are just a loan. Not paying a payday loan is like missing a payment on your credit card, or not being able to pay a hospital bill. Not good for your credit, but not fraud or felony or any of what they want you to think it is.

  • Diana Durrance

    July 29, 2013, pm31 7:40 PM

    I contacted my Credit Union by email and by phone telling them to stop any and all ach transfers and they said the only thing they could do is a stop payment and $30.00 per transaction. Is this in accordance in your opionion?

    • Robert Weed

      July 29, 2013, pm31 8:03 PM


      Yeah, I think they are allowed to charge you. But the burden is on them to get it to work. If it slips past them, they can’t just shrug it off. they’ve got to get the money back for you.

  • Jane

    August 2, 2013, pm31 2:44 PM

    I was advised by my banker to close my account after getting numerous scam calls once I took out a few payday loans. Now I’m getting calls from debt collectors posing as ”lawyers” stating that it was fraud to close the account and they are filing charges against me for wire fraud and intent to fraud a bank. Is this possible? I wrote them emails prior to closing stating that I was closing it and we had to make other arrangements. So there was no intent to fraud anyone.

    • Robert Weed

      August 2, 2013, pm31 6:47 PM


      Besides that, those “lawyers” are making illegal threats and you could go after them under the Fair Debt Collection Practices Act. Except for one thing. They probably aren’t in America.

      • Jane

        August 2, 2013, pm31 11:25 PM

        Thank you! I’m going to do just that! Someone needs to teach these sharks a lesson. It shall be me!!!

  • robert

    August 5, 2013, pm31 4:54 PM

    I got garnished a 100% of my pay last month for back state taxes. Now the payday people are on me for not being able to get there pay. I had to pay a lawyer to stop this garnishment. I have overpaid the garnishment amount by $1500 but I cant get that for a month or so…They came and reposessed my truck yesterday and my bank account is already bone dry. Is it wise to goahead and close my bank account so I have at least one foot to stand on come next payday?

    • Robert Weed

      August 5, 2013, pm31 6:37 PM


      Sounds desparate–yeah you need to do whatever you have to do so this next paycheck lands in your hands.

  • robert

    August 6, 2013, pm31 7:40 PM

    All right thats what I will do then. Anything more I should do before I close it? Besides leave a balance…
    Also, Loanmax did the repossession. How long do I have to get my vehicle back in Kansas?

    The guy who called me, and warned me about this repo I think was actually a person from the repo company…

  • Robert Weed

    August 7, 2013, am31 11:30 AM

    Robert–sorry I can’t answer that question about getting back the car :Loanmax repossessed under Kansas law. No idea at all.

  • Linda

    August 22, 2013, am31 2:59 AM

    I have a payday loan that they are refusing to stop ACH withdrawals from my account, have tried to set up a payment arrangement they refuse; of course. Did a permanent stop payment with my bank however they said they can only stop the exact amount I tell them. For example $90 is the regular payment but if they try to withdrawal $100 the bank says they can’t stop that payment. Is this true should I just close my account? Thanks

    • Robert Weed

      August 22, 2013, am31 11:01 AM


      The bank is telling you the truth when they say they are set up to block only specific amounts. But they are REQUIRED BY LAW to block people you tell them to block. I’m hacked off that the big banks don’t bother to figure out how to do what the law requires them to do. That’s why I posted this blog.

      Sadly, that doesn’t answer your question. I’m walking around here with a chip on my shoulder looking for a chance to sue a bank on behalf of one of my clients. But you aren’t here. So probalby, you just need to do what they say: close that account and open a new one.

  • Andrew

    September 3, 2013, pm30 6:58 PM

    Hey Robert,

    I live in Philadelphia,PA which after some research I have discovered that these loans are also illegal in the state of PA. If I have already paid back more than the original amount of which I initially took out, i can really just contact my bank and have them stop payments to the illegal loan company? I don’t have to worry about them reporting me to a collection agency or putting out a warrant for my arrest for nonpayment? They’re killing me and I can’t seem to crawl my way out of this hole.


    • Robert Weed

      September 3, 2013, pm30 7:27 PM


      Right. Stop paying, insist that your bank stop them from taking any more money out; and ignore the illegal threats the payday loans people and their collectors make to try to scare you.

  • nickole

    September 10, 2013, pm30 7:01 PM

    I have taken out two lines of credit. One with cashnetusa and mobile loans and i live in VA. They are killing me with payments of 500.00 a month, and I can’t afford to pay my rent or grocceries for me and my kids. I would like to try your suggestion on closing my account. Do I have a leg to stand on? Will this work for me also in the state of VA?

  • Linda

    October 8, 2013, am31 1:03 AM

    I have a question, I have taken out a web loan of $500.00 and I was told by the company that with the fee’s and interest i would have to pay back 1,280.46. I have payed that and this past Friday I noticed they took out another payment of $150.00 From my account when I got payed so now they have taken a total of 1,350.00.I called and told them i had been over charged they very rudely informed me that the total amount owed to them was 2,800.46? Are you kidding me , For a $500.00 loan? My husband and I both have direct deposit for our payroll, Is there any other way we can stop them from getting more money from us with out closing the account? The loan company Threated to use RRC’s and ACH to get their money,and I was also informed that because its from a Tribal loan company from Missouri and that they do not have to abide by state law and regulations. I live in Florida and I have noticed several complaints from the BBB about the same company…..Please help, Im very frustrated ! This was the first loan I ever did and it will be the last !

    • Robert Weed

      October 9, 2013, pm31 7:40 PM


      Right, these internet loans are dishonest scams. That’s why they are illegal and Virginia and maybe where you are, too.

      And that’s why I posted these instructions on what to tell YOUR BANK in order to stop them from taking more money. The “tribal immunity” may make it impossible to get back the money they have cheated you out of, but it has nothing to do with getting your bank to block them from taking any more.

      You might also enjoy this. Both the State of New York and the Consumer Finance Protection Bureau are going after the banks who handle payments for these Indian tribe payday loans, that may be legal on the reservations but violate state laws. http://dealbook.nytimes.com/2013/10/01/tribes-lose-effort-to-block-new-york-from-regulating-their-online-lending/?_r=0.


        August 28, 2014, pm31 4:02 PM

        how do i find out if they are illegal in my state?

        • Robert Weed

          August 28, 2014, pm31 6:41 PM


          Sorry, I don’t know.

  • Jenn

    October 16, 2013, am31 4:23 AM

    I live in Nevada. I have two payday loans, one with moneytree and dollar loan center. I am already on a debt management plan here in Nevada and I asked the counselor if I can add the payday loans to my dmp and she said yes but when I went to drop off the statement, the receptionist told me to close my bank acct. but I don’t want to close my acct. for some reason. But I told her that I will tell my bank to stop the payments. And like you said even if we tell the bank they will still try to take out money from my acct. But my question is can pdl still take out money or do that if I’m on a debt management plan?
    Please advice.

    • Robert Weed

      October 16, 2013, am31 10:28 AM


      The debt management plan has nothing to do with whether the payday loans can take money out of your account. A debt management plan is VOLUNTARY and so if the payday loans don’t participate voluntarily, they don’t participate. So sure they “can” take the money out.

      I don’t know whether “money tree” or “dollar loan center” are legal in Nevada or not.

      Now I tell my bankruptcy clients to stop the automatic withdrawals because I KNOW that payday loans–the legal ones anyway–have to participate in bankruptcy, because bankruptcy is NOT a VOLUNTARY program. Bankruptcy is a LAW.

      You didn’t get the best advice when you set up the debt management program first, and then wanted to “add the payday loans” later.

      I do know the the bank is required to block the automatic withdrawals if you do what I say, and the bank is required by law to get the money back if they let the payday loans take it out, after you tell them not to.

      I don’t know why you “don’t want to close your account” which is the easiest way to do it. And more importantly, I don’t know what the payday loans can or will do to you if they are legal in Nevada.

      The key point is this. A debt management program is voluntary. Most credit card companies voluntarily participate in debt management programs because they don’t want you to file bankruptcy. But I don’t know what payday loans will do.

      I am a bankruptcy lawyer. I have nothing against debt management plans–the honest ones anyway. And I recommend one or two people a month to try them. But I like bankruptcy for most people. Because I KNOW it will work.

  • Tammy

    October 22, 2013, pm31 12:02 PM

    Good Morning Robert, Like many above I too took out online payday loans. Now I am overwhelmed by the cost. I live in Indiana and paying about $900-1000 per pay check to loan companies. I am contemplating closing my account to resolve this or at least keep my check. Can loan companies sue me, have me arrested or will I be committing fraud? Additionally, will fees still be accurred for ACH debits after closing account? Is online payday loans legal in my state? PLEASE HELP!

    • Robert Weed

      October 22, 2013, pm31 4:50 PM


      Sorry I don’t know anything about payday loans in Indiana. I know that you are not committing fraud and they cannot have you arrested. I do NOT know if the loans themselves are illegal there. Here is one hint. If they are telling you that they will “have you arrested” then they know they are illegal and don’t care. A legitimate outfit would not say that, because they could lose their license for making an illegal threat.

      You might go to avvo.com and post a question there for Indiana lawyers to answer.

  • Iris

    October 31, 2013, pm31 1:38 PM

    I have closed my bank account to stop ACH payments on two internet loans,Plaingreen and mobil loans. Is this legal? My bank will not close my account until after 30 days. I live in VA

    • Robert Weed

      October 31, 2013, pm31 1:44 PM


      Those loans are illegal in Virginia–so it is legal for you to stop paying. (Don’t know why your bank says it takes 30 days to block them. That’s not right, I don’t think. You will get outrageous threats form debt collectors after you block those payments–those threats are illegal too but they don’t care. But they won’t do anything.

      • Iris

        November 7, 2013, pm30 6:57 PM

        Thanks for this valuable information. I’ve passed it along to othwers who live in Virginia a

  • B.Williams

    November 4, 2013, pm30 6:12 PM

    I took out an online payday loan in the state of Texas in April 2010 and I ran in to further financial issues before paying back to Cashnet.com. I had to close the checking account to prevent overdrawning the account and all the additional fees that I couldn’t afford at that time. I have now 3 years later started recieving phone call from a collection agency named Department of Fraud Investigators at 888-620-0128 stating that they are going to have me arrest and continue calling me at my job leaving harassing messages etc. I ask them to stop calling me at they are not Cashnet.com and that I would follow up with Cashnet.com and work them directly if possible.
    Can this company that is not the online lender have me arrested and/or serve me a warrant?
    What is the statue of limitation for the state of Texas for an online pay day loan?
    What should I do if Cashnet has not contacted me directly regarding this matter?
    What should I do to prevent the harrassment and threatening nature of this company?

    Please let me know as your help would greatly be appreicated.


    • Robert Weed

      November 4, 2013, pm30 7:25 PM


      Illegal payday loans send their debts to illegal debt collectors. I do NOT know the first thing about Texas payday loan law. (I am a lawyer in VIRGINIA>) But I can tell you that it is ILLEGAL for a debt collector to threaten to arrest you. And like I say in this blog, it is probably impossible to find this “Department of Fraud Investigators” in order to sue them. I gave you the link to the Federal cybercrimes reporting unit–you should file a complaint there.

  • Ashley

    November 5, 2013, pm30 5:58 PM

    I have a question.. i’m from Canada so the best of knowledge would be helpful…i had a insta loan for 200.00 they wrongfully with drew too much money out of my acct. mths later they called i told them to apply it to my amount owing.. never have i seen it applied to my statement.. i put a permant stop mths ago finally got a call from them last mth and a statement showing i own now 400.00 as 200.00 is nsf fees.. i think they are totally in wrong.. i told them i would never give my acct info to them plus i would do the right thing and once i see a statement with the nsf fees gone i would go into the office and pay.. where do i stand?

    • Robert Weed

      November 5, 2013, pm30 7:22 PM


      I barely know American law outside of Virginia. I can’t shed any light on Canadian law. sorry.

  • eric rainey

    November 9, 2013, am30 1:37 AM

    Hi, my name is Eric.I was wondering about a situation that a loan company got my fiance into. Her mom took a loan out using my fiance’s car as collateral.The car is in my fiance’s name.My fiance gave her mom permission for the first loan to do so.then her mom paid off the loan using another loan from another company and my fiance also signed for the okay on collateral.But here’s what I don’t understand. Her mom had the loan altered or either paid off and started a new loan.The company 1st franklin financial did not get my fiance’s permission for this third one.(not sure what to call it we went to the loan place to ask them why her car was in hock.they told us all they could show us was the paperwork from last loan were my fiance had signed and the new loan papers were they wanted her to sign but I told her not to sign anything because she did not give them consent to put a lien on her car this last time.Is it a crime to do this? They had no permission from owner of vehicle to use it as collateral.Who do i contact about this?Do I need to call the police and report them?Or is a lawyer only way to make them straighten up?They also lost the keys to the car.Are they liable for the value of the keys?Very confused at this point. We are located in south Mississippi.

    • Robert Weed

      November 9, 2013, pm30 12:17 PM


      That’s a really important question, but I don’t know. It would depend a lot on what the papers that she did sign said–maybe they gave permission to keep rolling over the loan. But it would also depend on Mississippi law–maybe title lenders are not allowed to keep rolling over the loan.

      You can take a look at NACA–the National Association of Consumer Advocates, for a lawyer in Mississippi who does automobile law–they might be able to help. http://naca.net/find-attorney.

      (I would think they are almost for sure liable for the value of the keys–assuming they really did lose them. If they are just using that as an excuse, they might be liable for a lot more. But I know nothing about Mississipi laws.)

      • eric rainey

        November 10, 2013, am30 6:29 AM

        Thank You for your input Robert.It is much appreciated!

  • Stefanie

    November 15, 2013, pm30 3:37 PM

    I live in the state of Georgia, where I recently learned Payday loans are illegal. I have two loans that I took out. One of them was for $1000 of which I’ve paid back over $1200 (and the balance shows I still owe $961) the other was for $700 of which I’ve paid back a little over $500 (not sure what the balance shows on that one). I bank with Chase and have not told them to not honor the ACH (didn’t know I could do that) and I guess I just want to double check with you, is telling my bank to stop honoring those payments something I really can do? If it’s illegal in my state how were they able to do it at all? I’ve seen quite a few loan companies that flat out say they don’t loan in Georgia (and any other state where it’s illegal). How are these companies doing it?

    • Robert Weed

      November 15, 2013, pm30 3:50 PM


      How do they do it? Because most people never figure out they are illegal. And heck even these guys have broken even on you.

      Can you really tell your bank to stop honoring those ACH…how much clearer could I be?

  • Marie

    November 19, 2013, pm30 4:34 PM

    Like the people who’ve posted before me, I too took out a couple of payday loans and my question is this. If I tell the bank to stop allowing the automatic withdrawals, how do I stop the payday loan companies from harassing me at work? Calling and harassing me and my coworkers could very easily get me fired. Do you have any advise on that front? Thank you for your time.

    • Robert Weed

      November 19, 2013, pm30 4:44 PM


      That’s the problem when you give your contact info to organized crime. I think you should report them to the FBI for cybercrime even if you then give in to their harassment and pay them.

  • Alisha

    November 21, 2013, pm30 8:29 PM

    Hi Robert,
    when placing a stop payment on a payday loan company for the first time (they have never taken money from my account before) do I go into the bank the day before and place the stop payment, or do I need to go in the day of the payment? I use a credit union.

    • Robert Weed

      November 21, 2013, pm30 10:05 PM


      I think you want to give them as much notice as you can, if you really want them to stop it.

  • Tammy

    November 27, 2013, pm30 10:18 PM

    Hi, I have been receiving unknown calls for the past couple of days from an agent hayes about a court summons and to call a 1 877 number to discuss arrangements and she called today saying she is from investigations about a breach of contract and to call a different 1 877 number, she never states what the call is about and the 1 877 numbers don’t say who they are, it just says call to avoid summons and legal proceedings, never mentioning whom the contract is for. I did take an online loan from Cash Net but paid it off with another company saying the same things. I haven’t returned the calls and she has been saying for days now she coming to my house or job with legal documents and I have been notified, Is there anything I could do about this, I have never been in trouble before and this has me shook.

    • Robert Weed

      November 28, 2013, am30 11:47 AM


      Yes, you can complain to the FBI. And also the Consumer Finance Protection Bureau. The links are in my other blog. (The one you commented on before.) And tell your friends NEVER get internet payday loans–they are dealing with organized crime.

      Here’s the FBI again. http://www.ic3.gov/default.aspx. Here’s the Consumer Finance Protection Bureau again. http://www.consumerfinance.gov/complaint/

  • chris

    November 29, 2013, am30 4:58 AM


    I got a call from a Michelle Jackson from ”Acs” collection saying she Filed check fraud charges against me for a company called bottom dollar payday. I did have a loan with them and fell on hard times. I tried to negotiate repayment terms and they scoffed at me. I changed my bank account number to stop charges being taken out. The company is based over seas and not even licenced to do business in any state. Well with the collection agency they claim to be based out of Buffalo new york, and do sound very American on the phone. When I called I asked Michelle if she was planning on coming to California to serve me paper s, she said if I would make a payment arrangement she would Email the process servers not to serve me. Can I be arrested for Check fraud for an online payday loan because I changed my account number before the loan payment went through or are they trying to scare me?

    • Robert Weed

      November 29, 2013, am30 11:17 AM


      I think they are only trying to scare you. I don’t know anything about California law, I’m a Virginia bankruptcy lawyer, but I’d tell my Virginia clients to NOT be scared; and to report this Michelle to the Consumer Finance Protection Bureau.

  • lori

    December 3, 2013, pm31 3:44 PM

    I live in VA. I have four PDL that I have to keep taking out to pay eachother. Now our bills (mortgage is late because of it). I have no idea what to do. I have called the bank and read your article. I asked them to stop taking the payments out. They said that I could withdrawl all the money from the account, and they would be returned as NSF (would cost me $36 each time) or I could put a stop payment on them (for $34 each) but if they change the amount that is owed then I’m still stuck. All four of them are illegal lenders in Virginia. I have paid THOUSANDS of dollars in intrest in the past few months trying to keep my head above water and now I can’t do it anymore. My kids won’t have a Christmas and my bills will not get paid. My credit will now reflect a 30 late mortgage payment. I have no idea what to do. Even closing the account and starting a new one won’t help because I work for the government and my check is direct deposited into that account. Any advice would be great!


    • Robert Weed

      December 3, 2013, pm31 3:51 PM


      I’ve told you what I know. You need to be tougher with the bank–tell them you read somewhere that if they let a payment through after they’ve been told not to, they have to go and get the money back or get sued for three times the check. See if that works.

      • lori

        December 3, 2013, pm31 5:57 PM

        I am getting ready to call them now. Am I understanding correctly that if I close my account and start a new one then I can set up payment plans with the illegal PDL lenders to pay off the balance? Is that what I should do?

  • Robert Weed

    December 3, 2013, pm31 8:46 PM

    Lori: Since those loans are illegal, why would you pay them off?

  • Chris

    December 17, 2013, pm31 11:08 PM

    I have a suntrust checking account that I want to close but each time I get it to zero, it gets hit with an ACH. I’ve told them 4 times on the phone that I want the account closed and went into the branch twice to settle up with cash. They say that even if I close it, if an ACH hits within 30 days they will honor it sending me negative with NSF fees. It seems to me that even if I haven’t specified the organization that I did not want paid (per Regulation E), that telling them to shut it down followed by 3 days of no activity should have done the trick, right?

    • Robert Weed

      December 17, 2013, pm31 11:54 PM


      I don’t know any more than what I put in my blog. But I can certainly tell you what the blog says. Tell them they need to block whoever it is from putting through any more unauthorized ACH debits. Your rights are NOT a right to “close the account.” Your right is a right to prevent unauthorized withdrawals. And if money comes out after that, they need to get it back for you.

      I’d suggest you also complain to the Consumer Financial Protection Bureau. Whether or not it’s a violation for them to allow money to come out after you told them to close the account, it should be. So ask for a new regulation–and send SunTrust a copy.

  • Keisha g

    December 20, 2013, pm31 5:28 PM

    I have told my bank several times to block a PDL in writing, but the PDL people will pop up every few months taking money out of my account for different amounts and they go through. My bank claims they can only stop certain amounts that I tell them. How can they do this because I don’t know when these PDL people will pop up again and try to debit my account. I have sent my bank 2 forms saying “stop ALL future transactions from PDL”. Doesn’t this require them in TX to stop all debits regardless of the amount? BTW it’s the form they sent me.

    • Robert Weed

      December 20, 2013, pm31 8:52 PM


      You need to go back to them and say, this was not authorized, you need to get it back. And you can add, I’m told I can sue you for triple damages if you don’t.

  • Wren

    January 11, 2014, am31 7:10 AM

    Robert, I live in Ohio and I have 6 payday loans (2 of which are tribal) and I am constantly juggling to make ends meet on ssdi. My checking account is in Wva. I have another one in MD which I use from time to time but never gave out to anyone online. This financial disaster is from a house remodeling effort that went several directions at once- truly unforseen events. Should I close the checking account in WVa and inform the bank why I am doing it? Or just close it and notify the PDL people of the need to negotiate the matter and use money orders? And would I be violating any interstate banking/financing, IC3 laws doing so? As you can see from the time I am writing this that it is worrisome to me. You are very insightful and very much appreciated. I realize you are in Va.

    • Robert Weed

      January 11, 2014, am31 11:07 AM


      You are certainly NOT violating any laws by closing some of those bank accounts. Yes, I think you should inform the BANK because sometimes they try to charge you even after you’ve closed the account putting through unauthorized charges. The bank is responsible to you.

      As to what you should do about these payday loans–you need to talk to a lawyer in Ohio. If you are living on SSDI you may have more than a months income out on payday loans. You need to figure out if you can stop paying ALL of them. “Negotiate the matter?” Maybe just tell them to go jump in the lake. You need an Ohio lawyer to look at each of them.

  • Whitney Webb

    February 6, 2014, am28 10:45 AM

    Hi there! I am a resident of NC (where apparently payday loans are not legal) I hope that perhaps you can shed some light on my situation.

    Freshly out of college and had only been working a few months, I got on the Internet to see what type of loan I could qualify for so that I could purchase a car and get moved into a place of my own. To my surprise $300 was deposited into my bank account. I was not meaning to actually apply for any loan but decided I’d just pay it off and it’d help to build my just beginning credit. Come payday $90 was taken out. I assumed this was going towards my balance. After many $90 payments I contacted them thinking this loan should be close to being paid off. When I spoke with them I was told my balance was still $390 and the $90 was arrefinance charge. This really aggravated me but I took responsibility and set up payments of $102 to betaken out every 2 weeks towards the balance owed. After many $102 payments I received a phone call that the company switched hands and lost my bank information and that I had one final payment of $102 left. I immediately returned the call and provided to information as I was ready for this to be completely over with. This was in October, and I had been dealing with this since February. Well on December 27th I receive an email from the new company that I did not recognize stating that I need to call and set up payments to my loan. To my knowledge my loan was payed off. I contacted them and they state I owe $390. I insist I paid it off. They asked for proof. I went to my bank statement and cannot find the charge for the final payment in October. I saw it pending the day I made it and most definitely had the funds in the bank. I do have the proof for all other payments made on my previous bank statements. I am not sure what to do at this point.

    • Robert Weed

      February 6, 2014, am28 11:12 AM


      What you should do at this point is do NOT deal with scammers! How long will it take before you figure out these people are just conning you!

      Actually you should complain to the Consumer Finance Protection Bureau and the FBI. If enough people complain, somebody may try to find those guys and prosecute them. You can find the links at the bottom of this blog. https://robertweed.com/bankruptcy-five-year-warranty/

      • Whitney Webb

        February 6, 2014, am28 11:46 AM

        Thank you for the advice. Unfortunately, I feel as though I have to deal with them in order to protect my credit score. I am most definitely going to report them. I will not be dealing the pay day lenders ever again and to say I’ve learned my lesson is an understatement.

  • Francisco

    February 11, 2014, am28 6:29 AM

    I just recently got a “line of credit” with cashnetusa and today found that they are illegal in virginia. What should I do? Should I go ahead and close my bank account? Should I switch banks? Please help.

    • Robert Weed

      February 11, 2014, am28 11:27 AM


      Good question. But I don’t know any more than what I say on my blog.

  • Mimi Lewis

    February 14, 2014, pm28 8:22 PM

    Had a PDL back in July – made payments and refis. Come Sept., I was unable to pay. The lender hit my account a few times causing me to have NSF fees. I paid the NSF Fees and the PDL didn’t attempt to take out any more money. I haven’t heard from them since. I figured they would turn me over to a bill collector. That being said, I received my income tax return on Tuesday in my bank account. This morning, I saw that they took out $1785! I called the bank and told them I didn’t authorize this particular transaction. They had me come into the branch to fill out paperwork. I asked the lady if she could see where they have had to hit my accounty between mid September and now. She said no, that they hadn’t attempted to hit my account prior to today. I didn’t know that I could inform the PDL people not to hit my account or that I could tell my bank not to let them hit my account until I read your blog. But, my question is how long can they attempt to take money from your account? I live in TX by the way and PDLs are legal here but there were recent reforms that went into affect last summer.

    • Robert Weed

      February 14, 2014, pm28 9:07 PM


      They can’t legally take money out of your account without your authorization. What did you authorize? Your state law may give you more rights, but I don’t know anything about Texas.

      • Mimi Lewis

        February 14, 2014, pm28 11:16 PM

        The last payment that I authorized was back at the end of August for $250.00. I have not authorized any other payments after that.

        • Robert Weed

          February 15, 2014, am28 11:35 AM


          Then how hard is that. Those people have STOLEN money out of your bank account. That’s wire fraud. It’s a felony.

          After you insist your bank gets the money back, report the scammers to the CFBP and the FBI. You can find the links here. https://robertweed.com/2012/12/18/internet-payday-loans-are-illegal-in-virginia/

          • Mimi Lewis

            February 15, 2014, pm28 2:55 PM

            Thank you so very much for this information, Mr. Weed. I greatly appreciate it!

  • Mike

    February 14, 2014, pm28 11:57 PM

    I know you are an attorney in VA, and I am in Oregon, so you don’t know specific Oregon law, but here is my dilemma:
    I took out a loan with Cash Jar (overseas) in July for $800, they took out between $150-$200 every 2 weeks until December. They then sold my account to OnSpot Capital (tribal lender), who began the same thing all over again. My balance is still over $600.

    After reading some similar advice, I went to my bank and they stopped payments from being taken by OnSpot, I disputed the validity of their authorization to make any withdrawls, and my bank refunded me all 3 payments that they had taken since mid December. Now OnSpot is calling constantly and I am preparing for what to say to them…
    1- Online Lenders have to be licensed with the State in Oregon- neither Cash Jar nor OnSpot are.
    2- I did not sign anything with OnSpot. In fact, I did not actually SIGN anything at all.
    3- I have more than repaid what I borrowed. I am done paying these guys.
    Do I tell them to kick sand, or am I better off making arrangements to repay to save my credit?

    • Robert Weed

      February 15, 2014, am28 11:33 AM


      Why do you think paying these scammers will save your credit? You are obviously a smart guy.

      Get your credit reports from each of the three at annualcreditreport.com–free. (Do NOT go to freecreditreport.com, which is NOT free.)

      See if those illegal payday loans are there. I’d be real surprised. The credit bureaus don’t want the illegal payday loans on their credit reports, because then they (the credit bureaus) are caught in the cross fire about whether those loans are a legal debt.

      (The illegal payday loans are hard to stop because thyme know they are illegal and they are good at hiding. The credit bureaus are NOT hiding. If they get tangled up in this you now how somebody to sue.)

      Tell them to kick sand. Then report them to the CFPB and the FBI. Find the links here. https://robertweed.com/2012/12/18/internet-payday-loans-are-illegal-in-virginia/

  • Cyndi Karl

    February 27, 2014, pm28 8:48 PM

    Hello. I recently applied for a payday loan online and have been getting calls non stop all day. I got a call from a gentleman with a strong Indian accent saying that I had been approved for a $5,000 loan and if I decided to cancel my application they would deduct $499 from my bank account. They have my bank account and all my information. Can they actually do that without my authorization?

    • Robert Weed

      February 28, 2014, am28 12:05 AM


      Can they–maybe; legally, no. That’s why I wrote this blog. Talk to your bank about this problem.

    • Summer

      April 9, 2014, am30 1:39 AM

      I made the same dreadful mistake as well. I was starting a new job and needed moving expenses. I applied online, thinking that I was applying for one loan and my info got sold to everyone! I get constant calls and I’ve asked them not to call me any more. I called one company back and asked to cancel my application. They proceeded to inform me that I would need to pay $700 to cancel the loan application.

      I contacted my bank and they offered the fee-based stop payment, but I didn’t have an exact amount. I never actually accepted a loan, receive funds (which they could see), or authorized the ACH to repay the loan. They said that I could place the account on “deposits only” and this status prevent any withdraws from my account. I transferred my balance to my savings account and I will eventually close my checking account. My bank was very helpful. I also placed a credit freeze with the bureaus.

      On a side note, I told the scammers that I was a law school graduate (careful not to saw lawyer) and I would love to try my hand filing a civil suit and exploring criminal charges. He then referred to me as Ms. Prostitute! I guess I was supposed to be offended into paying money.

      They really try to pressure you into paying. It’s crazy and I’m silly for opening myself up to that.

      • Robert Weed

        April 9, 2014, am30 9:59 AM


        Thanks for sharing that story. Hope it helps warn others.

        If you haven’t, you should file a criminal complaint with the Internet Criminal Complaint Center, here. http://www.ic3.gov/default.aspx

  • Rick

    February 28, 2014, pm28 12:22 PM

    This was a fantastic read! However, can you tell me if we have similar laws and rights over here in Australia? I have had direct debits from a loan repayment continue to come out after I had completed the repayments and had even received a hard copy of my completed loan statement in the mail. And yesterday a charity direct debit that I canceled over a year ago, started trying to debit my account twice this week?? What’s up with this?

    • Robert Weed

      March 1, 2014, pm31 9:45 PM


      I know NOTHING about Australia

  • Gina

    April 3, 2014, pm30 5:13 PM

    I took out two internet loans. One through Western Sky and the other through Silver Cloud Financial. I defaulted on the loan to Western Sky, closed the bank account associated with that loan. I’ve also submitted a complaint through CFPB. My understanding is that the CPFB is suing Western Sky and it’s other entities (WS Funding, Delbert Services, Cash Call) regarding these loans. Closing the bank account associated with that left me overdrawn approximately $1200. I’ve been told they are not considered a “PayDay” loan but an installment loan. I’m waiting to see the outcome of the CFPB suite, which I’m sure may go on for months. I can no longer afford to pay the other loan through Silver Cloud Financial. My questions is …how do I know if this is considered a “PayDay” loan vs. an installment loan? I understand from earlier post that these internet “PayDay” loans are illegal in VA but if they are considered installment loans are they still illegal? Also, because I am now overdrawn on the account I closed I don’t seem to be able to open another bank account. If I go to my current bank and tell them that I need my account closed because I am disputing the ACH withdrawl as illegal will they have to open another account for me?

    PS I forgot to mention. I am in Virginia

    • Robert Weed

      April 3, 2014, pm30 8:34 PM


      I’ve told you on my blog pretty much all I know. Don’t know when your account went overdrawn, so don’t know if you can still dispute the payday loan ach.

      I send a couple people every week to TD Bank. TD will often open up a bank account for people whose credit is so messed up they can’t get an account anywhere else. Also, people tell me good things about them–my wife uses that as her bank.

      Glad to know you complained to the CFPB. I’d appreciate it if you post something here if you hear back from them.

  • Melanie Owens

    May 19, 2014, pm31 3:11 PM

    I have taken a payday loan out with Cashnetusa. I have fell on hard times and called them to ask them to delay my payment for two weeks and was told they could not honor it and that I needed to fax proof of employment payments etc. When I took the loan I was unemployed and they knew that and still an unemployed. So told them I had no proof of deposits from income but that they needed to change date payment is due since no money will be in account. They were very rude and did not wan to work with me. When I researched about this I found that payday loans and such are illegal in Md. IS this correct. I called my bank M and T and asked them and they were not aware of any such law but said I can stop the ACH from coming out of my account from this company. So going forward if Cashnetusa puts in to have a withdrawal it will decline it. It cost me $35.00 to do this but better then over drafting my account every time. My question is going forward. IF they are illegal to practice in md why are banks putting through the ach withdrawals and what about paying back the money. Will this go on my credit report since legally they are not allowed in my state?

    • Robert Weed

      May 19, 2014, pm31 3:37 PM


      Good work. You definitely need to check your credit report–and if they do show up, you need to do a dispute. And if that doesn’t work, there are good credit report lawyers in Maryland who would LOVE to talk to you about it. You can find some of them here. http://www.naca.net/find-attorney.

      Attorney General Eric Holder is trying to crack down on banks taking payments for illegal payday loans. I posted on Google+ on that a couple months ago–I’ll see if I can forward it to you.

      Here it is, I think https://plus.google.com/118406949356702622582/posts/cvEcQi4G4yA

  • Rachel Stigler

    May 30, 2014, pm31 12:54 PM

    I called my bank to make a stop payment on 4 payday loans. I did this all within the allotted time. I checked my account today and the payday loan payments are pending in my account. What should I do? Will these go away or are they really pulling the money even though I paid the $30 stop fee? Please help!

    • Robert Weed

      May 30, 2014, pm31 2:51 PM


      Get right after the bank and INSIST. They act like it’s not their problem, but the whole job of a bank is to pay the people you want them to pay and NOBODY ELSE.

  • nelson robinson

    June 12, 2014, am30 1:24 AM

    I live in, Nc and I’ve been dealing with an online payday loan for a while now to the point where,I can’t afford to keep letting them draft funds from my account anymore, So I go in to one of my local branches to put a stop payment on this ACH draft the female employee here at the bank states we don’t put stop payments on accounts dealing with payday loans she then states well at this branch anyway. Can a bank do this decide what you can and can’t put a stop payment on for your account (money)?

    • Robert Weed

      June 12, 2014, pm30 3:08 PM


      That is exactly what they usually tell you. That’s why I posted this blog. The job of the bank is to pay people you want to pay and NOT give money to anybody else (well, unless there’s a legal garnishment.) You need to insist. If you were in VA and they didn’t stop it, I’d be glad to sue them for you, but since you’re in NC I can’t.

      • nelson robinson

        June 12, 2014, pm30 9:43 PM

        Thank you for your response, Mr.Reed.

  • Trish

    June 27, 2014, pm30 10:18 PM

    I have been receiving several phone calls saying the authorities of my city will be looking for me and I have a case for fraud, Ive never done anything fraudulent. They say its pay day loans. That took place 2010. Is what they are saying possible?

  • Janice

    July 24, 2014, am31 3:17 AM

    Mr. Weed I have two internet payday loans and my bank is closing my account. Thank goodness. I live in NC and I know once they can’t get their money, the calls will start. Also, I went into Virginia, right across the NC line and took out a payday loan. I’m wanting to make arrangements with them to pay their money back. Can they deny me pay back options at the one in Va?? Should I worry about the online ones??

    • Robert Weed

      July 24, 2014, pm31 3:23 PM


      Since you live in NC, I don’t know anything about NC law. Sorry.

  • Esau

    July 28, 2014, pm31 5:53 PM

    I have a question. I live in Texas. But recently I redid a contract with a payday loan company that I had paid off. Yea it was stupid but I needed the money at the time for bills. Well, there was’nt enough in the banking account that they deposited the money in so they used a debit card that was in the system from the last loan I had with them which was not associated with the new checking account. I did give the new card number and routing number to them yet when I spoke with the loan company they said since I had prior loans with them under that card, the system used it and here was nothing they could do. The bank gave me provisional credit but I am scared they will take it back. What can i do.

    • Robert Weed

      July 28, 2014, pm31 7:30 PM


      What can you do? Don’t deal with organized crime. Internet payday loans are organized crime.

  • Coleman

    August 5, 2014, pm31 7:21 PM

    I have a line of credit loan with cashnetusa. I live in louisiana. I’m thinking about changing my account. Can they sue me for the money. I have no problem sending them something monthy since I did borrow the money I just can’t do it with everyone of my check. I understand that technically my signature is not on anything. I just don’t want them calling my job or anything

    • Robert Weed

      August 6, 2014, am31 10:43 AM


      Sorry I don’t know if Cashnet is legal in LA. In VA they are illegal, but I just don’t know about LA.

  • ervin

    August 9, 2014, am31 3:50 AM

    I saw you mention a fine from $100 to $1,000(triple if it’s willful), how do you determine what the amount is? I didn’t have an unauthorized withdrawal by a payday loan place, just a real estate course with a trial period that I ended well before the deadline(I even have an email from them trying to get me to only pay half). They made 2 illegal withdrawals, what’s the amount of the fine?

    • Robert Weed

      August 9, 2014, am31 10:48 AM


      It’s up to the judge. That’s all I know. Hope you get your money back.

  • Paula Stuart

    August 13, 2014, pm31 10:41 PM

    I have two payday loans that are illegal. They were able to report to the credit bureaus (not sure why) about my open “loans”. Since they are illegal, do I not have a right to dispute their posting to the three credit bureaus and have those taken off? Why are these so called lenders able to submit loan information to credit bureaus? Thank you!

    • Robert Weed

      August 13, 2014, pm31 10:52 PM


      I agree with you. If you are in Northern Virginia, I’d like to talk to you about it. If you are somehwere else, look for a credit report lawyer in your area. One place to look is here. http://www.naca.net/

      • Paula Stuart

        August 14, 2014, pm31 1:27 PM

        Thank you so much for you insight about this. Thank you for the link, I will follow up. I actually live in North Carolina, but thank you so much for offering to talk to me about it. I really enjoy reading your blogs. They are very helpful. It is really frightening that these payday lenders are able to report to credit bureaus. I am going to put this to a stop.

  • Paula Stuart

    August 20, 2014, pm31 7:22 PM

    I asked my bank to do an ACH reversal for payday loan of 8/2/14 but the customer service agent did not submit the claim. I had to resubmit a claim last Friday. It has been 10 days past 8/2/14, should I worry about it or just give the bank a break and give them 10 days from the new claim? What are the chances this bank could decline my ACH reversal request? Also, I heard from Roy Cooper’s office and his representative told me the credit bureaus may not remove my loan from my report because the lender has “sovereign immunity”. I thought that was not applicable. Maybe I need to get a lawyer on this. Thank you,

    • Robert Weed

      August 20, 2014, pm31 7:30 PM


      I’d sure follow up with them and them them know it’s 10 days after you first told them to get it back. The banks act like they are doing you a favor but actually making sure nobody steals your money is their most important job.

      “Sovereign immunity” Right; Roy Cooper is claiming they are owned by and Indian Tribe, the paleface law can’t touch them. As long as they stay on the reservation, maybe. But the credit bureau and your credit report are NOT used on Indian land. They are use where you are. They put themselves under US law when they do business outside of the reservation with you.

  • Robert Liberatore

    August 22, 2014, pm31 2:14 PM

    I recently came across a company assisting me with a fraudulent loan and found it to be a disgrace the way my bank made me feel regarding their treatment of me. You need to be persistent in your efforts and know your rights. They will do there best to hold all of your money. And get this, one of the representative I spoke with from my Bank says when he gets a call to allow the initial transfer to go into an account he wants to tell the customer not to do it but is not allowed. Now that tells me they know exactley what they are doing.

    • Robert Weed

      August 22, 2014, pm31 2:18 PM


      Thanks for your comments and sharing your good example!

  • Paula Stuart

    August 25, 2014, pm31 8:01 PM

    my bank declined my claim to get a refund from my payment to an illegal lender stating i authorized the payment and i would need to contact the merchant directly. would it be a good idea to get an attorney? i am so frustrated.

    • Robert Weed

      August 25, 2014, pm31 8:43 PM


      You are certainly in a strong legal position if you notified the bank before it went through. I’m looking to take those cases but I’m not sure how many lawyers are. You should also complain to the Consumer Finance Protection Bureau and the Federal Reserve (if it’s a national bank.)

  • Paula Stuart

    August 25, 2014, pm31 11:14 PM

    I wish i lived in Virginia,i would set up an appt with you. I have the impression these people working in banks and credit bureaus do not know the laws about payday loans and are making incorrect decisions about claims.it is incredibly frustrating.i sent a letter to the credit bureau asking for them to remove a lender from my report but they refuse to do so. They say it was a valid loan. How can something illegal be valid. Thanks again.

    • Robert Weed

      August 26, 2014, am31 10:12 AM


      Keep good notes on your credit report dispute. Then find a lawyer in your area who does Fair Credit Reporting Act law.

      • Paula

        October 14, 2014, pm31 7:10 PM

        I found an attorney. She is fantastic. Hopefully I will get this issue resolved soon. Thank you so much for your insights.

  • Joe

    October 30, 2014, pm31 5:47 PM

    I have a payday loan and I live in fl my payday loan is with one of those tribal placed is illegal for the to debt my account since I live in florida and what should I do

    • Robert Weed

      October 31, 2014, pm31 2:12 PM


      Can’t give legal advice to FL and don’t know more than what I’ve said here, sorry.

  • Jameshia Johnson

    December 10, 2014, pm31 10:29 PM

    I live in Memphis, TN I took out a payday loan from American Web(Tribal Loan) the worst mistake of my life. Anyway I sent them an email asking them to revoke my ach and they have not responded to my email, Should I go ahead and stop the ACH from my bank? or wait for a response because this is causing my account to go into over draft, this loan was for $500 to date I paid 250 towards this loan with $50 went toward the actually bill so its 450 now.

    • Robert Weed

      December 10, 2014, pm31 10:37 PM


      YES, tell your BANK. Sending the email to the payday loan people probably will NOT stop them. What it does is to make it possible for you to tell your bank that the withdrawal is NOT authorized.

      • Jameshia Johnson

        December 11, 2014, pm31 7:22 PM

        Mr. Weed thank you for advice I went to the bank, the teller advised me to close my account because if I try to stop the ACH from coming through it would be a waste of money. Because that same company could tweek their name and still try to make a withdrawal from your account ex: AmericanWebLoan-A then they can change it to AmericanWebLoan-B.

        • Robert Weed

          December 11, 2014, pm31 9:25 PM



  • Travis

    July 3, 2015, pm31 11:45 PM

    I’m in Georgia. I have a loan with instaloan and haven’t been able to pay it for several weeks. Now they just debited my bank account for the whole pay off with out any notice to me what so ever. Is this legal. Now I’m over drawn and stick in a rut. The bank said it was done with my debit card and my pin number was used. I never gave them my pin. What can I do?

    • Robert Weed

      July 4, 2015, pm31 8:35 PM


      Sorry, I don’t know anything about instaloan–I think they are only in GA and FL.

      You need a Georgia lawyer to take a look at the GA Payday Loan law. It might have something that says they can’t do that.

      A good place to look for a lawyer would be here. http://www.consumeradvocates.org/find-attorney

  • k. Zellous

    July 29, 2015, pm31 9:11 PM

    what if it is one day before the payment is to come out?

    • Robert Weed

      July 29, 2015, pm31 9:18 PM


      All I can say is good luck!

  • Maegan

    August 21, 2015, pm31 4:38 PM

    Back in May 2015, I took out a large loan from LoanMe. The monthly payments are quite large and it’s getting harder and harder to pay my rent, utilities, and foods bills. Does a monthly payment qualify as a payday loan? Or is it a different type? And, how do i stop the automatic debiting of my account? Do I do everything you said above or is there a different process?

    • Robert Weed

      August 21, 2015, pm31 5:38 PM


      I never heard of LoanMe until just now. Looked at their website and they claim to be properly licensed in California. My suggestion on how to stop them taking money out of your account would be the same. But that brings up the question of whether the loan is legally enforceable where you are. Will them come and sue you? I have no idea–like I said, this is the first time I’ve even heard of these people.

  • liam

    October 18, 2015, pm31 9:25 PM

    Is cashnetusa payday loans illegal in maryland . I took out one with cashnetusa this year and last year 2014 and the more I pay the less I seem to get ahead with them.

    I read and understand about telling my bank to stop payments to CNU but I think it is more easy to close my bank account which I am going to do but can they come after me and sue me if I dont pay their so called loan if they are illegal in maryland

    I know they cant say check fraud etc but should I try to repay them on my own terms so they dont garnish my wages or should forget them all together and just

    • Robert Weed

      October 21, 2015, am31 10:11 AM


      I’m sorry I don’t know Maryland law on whether Cashnet is legal there.

  • Richard

    December 12, 2015, am31 2:17 AM

    Hey Robert, not sure if you’re still taking questions, but thought I’d take a shot..

    I took out a payday loan from Speedy Cash close to over a year ago. Although I signed a paper authorizing withdrawal (some payments were made this way), eventually the account went to collections/debt consolidation because I couldn’t keep up with the payments. I have printed letters proving that the account was transferred to collections.

    Then, after almost a year of no communication from them (Speedy Cash) directly, all of a sudden today, an ACH transaction for $548 appeared on my account. It must have been made after the processing time window, because as of 8:12pm today (Friday), it is still listed as “pending”, though the funds are in hold until it’s processed Monday I assume.

    I immediately called my banks 800 number and filed a claim and stop payment on it. They said they can’t guarantee it will block it. I’m almost sure they will refuse the claim saying I authorized it. I’m hoping the stop payment will work since the transaction was still pending. However, I’m in dissaray that neither will work and am losing my mind over it.

    To close this, again – the account was in collections/debt consolidation and I can prove that. So, how can they even still use an ACH to withdraw from my account with that in mind? I can’t imagine that the collections agency has that authority.

    Appreciate your help, apologies for the long question. Thank you for your time.

    • Robert Weed

      December 12, 2015, pm31 3:54 PM


      Did you deal with Speedy Cash in person–they do seem to have stores in some states. In those states they would have to follow state law and that probalby gives you some protection. If you dealt with them on the internet, they were trying to avoid being covered by any law. So they would claim you have no rights at all; I would say they are organized crime.

      The collection agency did not have that authority, either way. In my experience internet payday loans usually end up with underground debt collectors. People who know they are illegal and don’t care.

      You do have rights with your bank. And you know where they are. If the money does come out, tell them they have to get it back. Just insist. You have the right to triple the money back, if they don’t. Tell them so.

      Good luck.

  • Tonya

    February 2, 2016, pm29 9:47 PM

    I basically have the same question as far as banks stopping payments. I called the bank 3 days before the ACH withdrawal on 2 of my payday loans and I was on the phone with her for 20min clearing everything up. I felt very confident. Then I looked on my account 3 days later and noticed I was never charged for stop payment and the payday loans went through. I was so upset. I called the bank again that day and a woman said because they are still in pending she can reverse the fees for me but it will take 24 hours to see the credit. and she apologized why it wasn’t done in the 1st place. Well I looked at my account 24 hours later and still the payments weren’t reversed and I was charged for those stopped payments. I’m so upset right now. I don’t even know what to Say. Isn’t this a legal matter now because they said they would do there job and they never did!! Can I make give me those payments back due to there error??

    • Robert Weed

      February 3, 2016, pm29 5:09 PM


      Yes, they need to get that money back from the payday loans. They can do and they are required to do it, too.

  • Tyler

    May 3, 2016, pm31 3:00 PM

    If I close my account and start up a new one will ACH payments be able to get into my new account?

    • Robert Weed

      May 4, 2016, am31 6:30 AM


      I don’t think so, but your bank would know better than me.

  • Jason Levins

    June 16, 2016, am30 8:04 AM

    I went into my bank they do not understand any at all of electronic funds transfer act. Reg e an told me that they couldn’t stop any ach deductions other than charging me sixty Dollars for stop payment fees an said my letter to stop ach deductions were not admissible

    • Robert Weed

      June 16, 2016, am30 11:48 AM


      Tell them you’ll talk to a lawyer. Talk to a lawyer. Or, change banks.

  • Whitney

    June 25, 2016, pm30 12:31 PM

    I have two payday loans out with a company they went and printed off a check and deposited for $281 without my signature the bank says they can! Can they really?

    • Robert Weed

      June 26, 2016, pm30 6:52 PM


      Well they can if you “authorized” it. They can’t if you didn’t “authorize” it. Most banks are NOT very helpful on this problem, unless you really push them.

  • Johnny

    August 16, 2016, pm31 4:12 PM

    I am in AZ. My account is -200 + 35 for NSF fees can I tell them to stop all future transactions , do I have to pay them back for the 200+ they say they paid even tho there was no funds , what’s the best way to handle ??

  • Johnny

    August 17, 2016, pm31 4:37 PM

    Hi I live in AZ. I am trying to close my Wells Fargo account and took all money out. I have a payday loan that I think is not legitimate trying to extract money from account. As I tried closing the account the bank said I have to wait for pending transactions to be done. Fine. Next day I see the payday company take over $200 out of my account! The bank then gave me NSF fees due to it asking me if I allowed them. I now have NSF fees piling up and have this company that I don’t want to be giving my money to! The bank said I owe the 200 since they paid the loan company. I said I did not want that to happen. How do I get my money back and why are they giving my money out as I’m trying to close the account ?? Please help! Thank you !!

    • Robert Weed

      August 18, 2016, pm31 4:36 PM


      You need to insist that you TOLD them that the payday loans was NOT authorized to take the money out. If you TOLD Wells Fargo that the payday loan was NOT authorized to take the money out, and they let them take it, they gotta give the money back. That’s what my blog says. If you just said, I want to close the account, that doesn’t protect you.

      Good luck. Let me know.

  • Danny

    January 6, 2017, pm31 10:10 PM

    Hi Mr Weed,

    I have read your blog, scanned over the comments and replies and feel I have a pretty good grasp of the laws, do and don’ts.
    My question isn’t necessarily about the PDL itself, but Wells Fargo and the PDL. Took out a online loan from Check n Go (they also have brick and mortar in Texas as well). Anyway, fell a little behind and have a final huge payment coming up. Called Wells and told them to block the ACH and was told like many others that they can change the amount and/or alter their name a bit and still have it go through. Of course it’s $31 for the block. Ok, fair enough. I then said I will be closing my account and was told that anytime they tried to send through a ACH, it would still go through because when I applied online, I gave them the authorization to debit my account AND would be charged NSF fees every time it was put through.
    I noticed you said just closing my account would not be sufficient to keep these criminals and the banks fromgetting rid of the problem. my question is and I have heard that closing my account and asking for an immediate “hard hold” on ALL debits would work and the bank could not charge me any NFS fees or pay out any creditors. Would this indeed solve the problem? I know you do not know the Texas rules and regs, but I’m thinking this is more of a banking question.


    • Robert Weed

      January 7, 2017, am31 10:55 AM


      It sounds to me like closing the account and putting a hard hold should work. The law is clear that the burden is on the BANK to tell you what you need to do to block these people. I’ve never had to sue them, though, because if the customer is clear enough, the banks always seem to back down and do what the law requires. But me saying that is only so much help. Besides having the law on your side, you may need to have a lawyer on your side too.

      So I can first repeat which I told you. Tell Check n Go they are no longer authorized to take money out. Tell Wells Fargo Chec n Go is not authorized. If money comes out, talk to a consumer lawyer in your area. One good place to look is here. http://www.consumeradvocates.org/find-an-attorney

      Finally it would help me and others if you let us know how it worked out.

  • Atlas

    January 23, 2017, pm31 10:54 PM

    Hello Mr. Weed! I have found myself in an interesting situation. I used RISE to get a short term loan for a recent move. Since I have used them before, they have a quick application process to get you another loan ASAP (basically, it keeps all the info the same and issues another loan). The problem is, I recently found out that RISE is illegal in Colorado (where I moved to; from South Carolina). Also, I found out that it is illegal in SC as well (and was at the time it was issued).

    I admit that I didn’t read the fine print and breezed through the quick re-application process (click and get the money, basically), but are they allowed to issue illegal loans? Not just illegal in the state that I’m in (that they may or may not be aware of), but the state that it was issued through as well?

    And what are my options? Do I stop paying? Do I call and press them on it? Should I just close the bank account and take the credit hit? The interest rate is >300% and I’m definitely feeling taken advantage of.

    • Robert Weed

      January 24, 2017, am31 6:21 AM


      I see you’ve done some research and I’m glad my post was one of the things you found helpful. I’m not sure I have much to add.

      You talk about taking the “credit hit” if you stop paying. Are they hitting your credit report now—a lot of them don’t. If so you might be able to find a Fair Credit Reporting lawyer who will set up a dispute and get it knocked off your credit report; and maybe persuade the credit bureau to stop allowing illegal loans to be reported.

      • Atlas

        January 26, 2017, pm31 8:08 PM

        I know they are reporting to at least one of the credit bureaus because they reported positively when I payed the first loan off. I may have to look into a credit lawyer and try to get this resolved. Further research shows that they are one of the loan places that hide behind native american rights to avoid being prosecuted. Thanks for your post and your reply! It was helpful.

  • Mark

    May 25, 2017, pm31 1:54 PM

    Bank requires that you go in to fill a form to stop payment on auto withdrawals. $21.00 a pop. Is this legal?

    • Robert Weed

      May 25, 2017, pm31 3:48 PM


      I think it might be. After all you are making work for the bank after YOU voluntarily gave out your info.

  • Tamatha

    July 15, 2017, pm31 2:28 PM

    I changed my account numbet with my bank and they still took out payment for internet payday loan…how did they get my new informatio

    • Robert Weed

      July 19, 2017, pm31 5:08 PM


      Ask that question to your bank. Be really angry and let the bank know they are NOT doing their job to keep your money safe. Tell them to get it back. Internet payday loans are criminals; who knows where they got your info but that’s not your problem, that’s your bank’s problem because they need to get the money bank. And YOU need to know to not give out your info over the internet to criminals.

  • John Francisco

    August 10, 2017, am31 2:54 AM

    My wife and I took out a loan from Silver cloud tribal recently. When speaking with the reps, we were told a total payoff of 260$ more than the loan which is fine. But the thing no one told us was that there were minimum payments. I’m expected to pay 3k more than the initial loan. This loan had been explained very poorly and I realized that night when looking further in that I am a sucker. Do you know if they are legal in Tennessee?

    • Robert Weed

      August 13, 2017, pm31 3:32 PM


      Sorry, I don’t know if they are legal in Tennessee.

  • Sonia Espinoza Thomas

    September 13, 2017, am30 10:06 AM

    I had a online loan place take money $2,228.92 out of my account called PMT Central Loans I and don’t know who or what company that could be called my bank and the only answer I got from them was it was a online loan company and they asked if I would like to put a stop to it because it puts me at a negative of $780.00 with over draft fees does that mean I will get my money back if they stop it? And I don’t know who or what that company is

    • Robert Weed

      September 13, 2017, am30 10:21 AM


      Like I say on my blog, this is your bank’s responsibility, but they try to dodge it. This is not a question of stop payment. Somebody stole money from your bank and the bank knows where it was and they need to get it back for you. BUT you have to really stand on them to get them to do it.

  • Heide

    June 18, 2018, am30 3:45 AM

    Are Plain Green loans legal in Iowa and can they take from my bank account if they didnt do ACH? They sent a check. Im on disability and I was told they cant go after me…is this true? Im so mad I took this loan out!

    • Robert Weed

      June 21, 2018, am30 7:17 AM


      I’m sorry but I don’t know any Iowa law.

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