Under the Electronic Fund Transfer Act (EFTA / Regulation E), consumers have the absolute legal right to revoke pre-authorized ACH recurring electronic debits at any time.
1. Steps to Legally Revoke ACH Authorization
- Step 1: Written Notice to Lender: Send a formal letter or email to the lender stating: 'I hereby revoke my authorization for automatic electronic debits from my bank account ending in [XXXX].'
- Step 2: Formal Bank Stop-Payment Order: Notify your depository financial institution at least 3 business days before the scheduled transfer. Oral stop payments remain effective for 14 days; written stop payments remain active for 6 months.
- Step 3: Alternative Payment Arrangement: Revoking ACH authorization does not cancel the underlying debt; arrange manual payments via cashier's check or online bill pay.