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We know that there are automatic charges that, more than helping, what they do is empty your bank account. Therefore, at TakeCareOfMoney we explain what you should do if you want to cancel automatic payments from your bank account in the US, and what you should do if a company withdraws funds from your account without your authorization.
On previous occasions we have talked about how convenient it is to establish automatic payments in your bank accounts, as this allows you to manage your expenses easily and without worrying about forgetting an important payment.
However, there are certain payments that, more than helping, can make your bank account empty without you realizing it. Therefore, it is convenient that you know how to stop or cancel this type of payment.
In fact, not only can you, but there is a federal law that provides you with protections for automatic recurring payments. According to the US Consumer Protection Bureau (CFPB), in fact, you have the right to prevent a company from charging automatic payments from your account, even if you have previously allowed them.
How can I stop automatic charges from my US bank account?
There are at least three ways to stop automatic debits from your US bank account, according to the CFPB:
- Call or write the company : You will need to call the company directly and tell them that you are revoking their permission to withdraw automatic payments from your bank account. This is called a “authorization revocation.” If you want to write them a letter to revoke the withdrawal permission from your account, you can download one of the CFPB (Consumer Financial Protection Bureau) templates.
- Call or write your bank or credit union – You must tell your bank that you have revoked authorization for a specific company to automatically charge your account. Some financial institutions may even offer you a digital form for this type of request.
- Send the bank a “stop payment order” : If you give the bank a stop payment order, the bank will not allow the company to collect payments from your account, even if you have not revoked the authorization to the company.
For this order to have the desired effect, you must send it to the bank at least three business days before the payment date. You can deliver it in person, by phone, or in writing.
Banks typically charge a fee to execute an order to stop a payment.
What should I do if a company has withdrawn funds from my bank account even though I revoked their authorization?
You should notify your bank or credit union immediately if you discover any unauthorized charges. Federal law gives you the right to dispute any unauthorized transfer from your account, and get your money back, as long as you’ve notified the bank on time.
It should be noted that canceling automatic payments does not cancel your contract with the company. This is an operation that you must do separately.