Cancelling AutoPay w/ Payments Not Stopping

[ksgirl38]

This is a little off topic, but this happened to me today. I'm still going through the phase of interviewing attorneys trying to find the right fit so I haven't officially filed bankruptcy yet. I stupidly had one of my credit cards set up on autopay after I forgot to go online and make the payment one month. Well, the next month I started talking to attorneys and considering bankruptcy. I was advised to stop paying on my credit cards so I went online and cancelled any payments, deleted the account information for my bank and also called the credit card company. I had another issue I needed to talk to them about anyway, but also asked them to cancel the autopay while I was on the phone. Well, today I log onto my bank account to see that they took out an almost $400 payment after I specifically cancelled the autopay. Is this even legal? I'm in the process of switching over to a new bank so I haven't completely closed that account out yet, but there aren't really enough funds there to cover this withdraw which means that I'm probably going to get stuck with an overdraft fee from the bank. I called the credit card company and they said they would refund the money back, but it's going to be 1-2 business days before that happens. Any suggestions? Has this happened to anyone? Just wondering what legal options I have here. It just seems that if you cancel the autopay that they shouldn't be able to still withdraw the funds.

[treehugger1]

What YOU do online and the timing of their system response are two very different things. In my not-so-humble opinion, close your current bank account and open a new account at a different bank before you find yourself in a credit situation where you can't even open a bank account.

I don't know your legal options. You clearly state that you want to stop paying them, so you should clearly put yourself in a situation where the creditors have no access to your bank accounts. Just because something seems illegal does not imply a creditor will refrain from such action. Don't confuse civil law with criminal law. They are not the same. Your "legal options" could cost you more than the debt is worth.

Just opinions here...

[ksgirl38]

What YOU do online and the timing of their system response are two very different things. In my not-so-humble opinion, close your current bank account and open a new account at a different bank before you find yourself in a credit situation where you can't even open a bank account.

I don't know your legal options. You clearly state that you want to stop paying them, so you should clearly put yourself in a situation where the creditors have no access to your bank accounts. Just because something seems illegal does not imply a creditor will refrain from such action. Don't confuse civil law with criminal law. They are not the same. Your "legal options" could cost you more than the debt is worth.

Just opinions here...

I think you missed something. I don't think you read what I typed. Not only did I cancel it online, but I called and spoke to someone over the phone and asked them to cancel it. I also deleted my info from the website.

I am in the middle of switching banks, but I can't get it closed that quickly. This is the excuse I gave them for cancelling the autopay. I'm up to date on all bills and this would be the first month I stop paying.

So I'll ask my question again, if you request that a creditor stop autopays and they don't, is that legal?

[catleg]

You need to go to the bank and dispute the transaction as a "Reg E" complaint. They should be able to reverse the transaction if you use that phrase.

[ksgirl38]

You need to go to the bank and dispute the transaction as a "Reg E" complaint. They should be able to reverse the transaction if you use that phrase.

Thanks. I tried to put a stop pay on it, but not sure if it went through or not. Bank is closed now and it says pending still. I'm just so irritated. I specifically went to the point of cancelling this so I wouldn't have this problem. Citibank is full of idiots.

[ohiogal]

I came up against this exact problem when I filed. I had several cards on autopay, and my attorney told me that some credit card companies are REALLY nasty about continuing to take money out of your account even after you tell them to stop. Discover Card is apparently one of the worst - my attorney said that cease and desist letters don't even slow them down. They figure that if you're filing, you don't have the money to fight them in court, and they want as many payments as they can get before that discharge. They don't care if you end up overdrawn.

The only way to stop them is to close out your account and open a new one, which is exactly what I did, and what ksgirl is doing. And, obviously, don't set up autopay on any new credit cards, so this doesn't happen again. I write the due date for my credit card payment on the calendar to remind me; that way I don't need autopay.

Unfortunately, until that account is closed out and a new one opened up, there's really no way to keep a CC from raiding your account to get their monthly payment. Is it legal? Good question. There's a ton of fine print in credit agreements, and when you set up autopay there's another ton of fine print, so your attorney can maybe comb through there and see if there's anything that addresses that.

[ksgirl38]

I came up against this exact problem when I filed. I had several cards on autopay, and my attorney told me that some credit card companies are REALLY nasty about continuing to take money out of your account even after you tell them to stop. Discover Card is apparently one of the worst - my attorney said that cease and desist letters don't even slow them down. They figure that if you're filing, you don't have the money to fight them in court, and they want as many payments as they can get before that discharge. They don't care if you end up overdrawn.

The only way to stop them is to close out your account and open a new one, which is exactly what I did, and what ksgirl is doing. And, obviously, don't set up autopay on any new credit cards, so this doesn't happen again. I write the due date for my credit card payment on the calendar to remind me; that way I don't need autopay.

Unfortunately, until that account is closed out and a new one opened up, there's really no way to keep a CC from raiding your account to get their monthly payment. Is it legal? Good question. There's a ton of fine print in credit agreements, and when you set up autopay there's another ton of fine print, so your attorney can maybe comb through there and see if there's anything that addresses that.

That's the thing though, I haven't filed yet. I haven't even decided on an attorney yet. They don't know that I'm considering bankruptcy yet.

[bcohen]

If you're planning to file, who cares if the account is overdrawn? Negative bank accounts and overdraft fees are dischargeable in bankruptcy. And I can't think of anyone better to file on than these thieving banks.

[Nicollette]

I've been told that even though you delete your autopay bank info with companies, it is still stored in their system?

[ohiogal]

That's the thing though, I haven't filed yet. I haven't even decided on an attorney yet. They don't know that I'm considering bankruptcy yet.

The bottom line is, they have your checking account information and access to your account. They may suspect you're going to file, if you have a high balance and have only been making minimum payments - when I called one card to stop Autopay, the gal I was speaking to immediately asked if I was planning to file bankruptcy. They can sense these sorts of things.

In any case, it doesn't matter - as long as they have access to your checking account, they have the ability to withdraw those payments, and fighting them when you've got so much other stuff to do will be exhausting. Your best defense is to get that checking account closed pronto, and open another one, then they can't take a dime. How long will it be before you can get things switched over? I'd make it a top-level priority.

[ohiogal]

I've been told that even though you delete your autopay bank info with companies, it is still stored in their system?

Oh, I'm sure it is. They have records after all, of all the transactions. All of your information is stored there, including, I'm sure, your checking account number.

[GoingDown]

Your best defense is to get that checking account closed pronto, and open another one, then they can't take a dime. How long will it be before you can get things switched over? I'd make it a top-level priority.

+1 I agree.

This should be your top priority.

[ksgirl38]

If you're planning to file, who cares if the account is overdrawn? Negative bank accounts and overdraft fees are dischargeable in bankruptcy. And I can't think of anyone better to file on than these thieving banks.

Because I have other bills that are coming out of that account that won't get paid. I'm current on all my bills and I have an excellent credit score. I know the bankruptcy will screw that up, but I don't want my credit score plummeting because of this. I'm going for the surprise attack bankruptcy here. I don't need my utility bill not getting paid just because Citibank failed to obey orders.

[ksgirl38]

The bottom line is, they have your checking account information and access to your account. They may suspect you're going to file, if you have a high balance and have only been making minimum payments - when I called one card to stop Autopay, the gal I was speaking to immediately asked if I was planning to file bankruptcy. They can sense these sorts of things.

In any case, it doesn't matter - as long as they have access to your checking account, they have the ability to withdraw those payments, and fighting them when you've got so much other stuff to do will be exhausting. Your best defense is to get that checking account closed pronto, and open another one, then they can't take a dime. How long will it be before you can get things switched over? I'd make it a top-level priority.

That's not legal. It can't be. I guess I'll bring it up at consultation #5 tomorrow, but if you specifically ask a company that you are in good standing with the stop the autopays they should. The only legal way that I can see for them to do this would be to go through the courts with a garnishment.

I'd rather use that $400 for lawyers fees than to waste on my credit card company. They've gotten enough of my money. I don't have $400 to spare.

Somehow I feel like no one understands my point here.

[ksgirl38]

Oh, I'm sure it is. They have records after all, of all the transactions. All of your information is stored there, including, I'm sure, your checking account number.

They did. I spoke to a guy on the phone yesterday and asked him to delete it. I know he did because when he was trying to reverse the transaction he didn't have the routing number to look up again. Either way, my bank put a stop pay on it. It just ticks me off. I'm still in the process of cancelling all my autopays and transferring everything over to a new bank.