#HOW TO STOP A HOW TO#

Automatic payments can help you avoid late fees on your bills.

Be careful about overdraft and insufficient funds (NSF) fees.

Be wary of a company that pressures you to repay by automatic debit.

A company cannot require you to repay a loan by automatic debit from your checking account as a condition for giving you a loan (unless the loan is an overdraft line of credit). Never give your bank account or debit card information to a company that youвЂ™re at all unsure about. Consider using a different payment method until youвЂ™re sure youвЂ™re happy with the company or service. Before agreeing to let a company automatically take money out of your bank account, make sure the company is legitimate and credible. However, be careful about giving a company permission to take payments directly from your account.Д«efore you give a company permission to make automatic withdrawals: Be cautious about giving anyone your bank account information and authorizationДЄutomatic payments can help you stay on track with bills and other regular payments. With automatic debits, you give your permission to the company to take the payments from your bank account. For recurring bill-pay, you give permission to your bank to send payments to the company. How are automatic debit payments different from bill-pay?ДЄutomatic debit payments work differently than the recurring bill-pay feature offered by your bank. The company should let you know at least 10 days before a scheduled payment if the payment will be different from the authorized amount or range, or the amount of the most recent payment. You can set up automatic debit payments to pay the same amount each time, or you can allow payments that vary in amount within a specified range вЂ“ for example, for your utility bill that changes each month.

on a recurring basis, usually at regular intervals like every month.

electronically withdraw money from your account.To set up automatic debits directly with a company, such as a student loan or mortgage servicer or even a gym, you give the company your checking account or debit card information and give them permission (вЂњauthorizationвЂќ), in advance, to: LetвЂ™s take a closer look at this last form of electronic payments. WeвЂ™ll call these automatic debit payments.

Another electronic payment option is to give permission directly to a company, such as a merchant or lender, to take payments from your bank account on a recurring basis. Most banks provide online or mobile bill payment services that let you schedule and send payments through your bank, either on a one-time or recurring basis. Some of your choices are to pay by check or to pay electronically.

#HOW TO STOP A HOW TO#

You have choices about how to pay your bills. Therefore, before you give anyone your bank account number and permission to automatically withdraw money from your bank account on a regular basis, itвЂ™s good to know how automatic debits work, what to be careful about, and how to stop the automatic payments if you cancel the service or just change your mind about how you want to pay. However, consumers have told us that in certain cases, they have had trouble stopping automatic payments after providing a company with their bank account number. Some lenders offer an interest rate reduction on loans for paying by automatic debit. Such automatic payments can be a convenient way for people to make sure they pay their bills on time. This could be for utility bills, credit card bills, monthly fees for childcare, gym fees, car payments, or even a mortgage. People use automatic payments set up with a merchant or other service provider to pay bills and other recurring payments from their bank or credit union accounts.

How to stop a