Block Payday Loans From Debiting My Account |‌ PaydayloanHelpers

Many people take out payday loans to help them get through tough financial times. However, the last thing you want is for your account to be debited by a third-party company without your permission. The good news is that it’s easy to block payday loans companies from debiting out of your account! Here are three ways how.

  • Opting not to store debit card information with the company 
  • Contacting the bank and requesting they only authorize withdrawals over $100 
  • Setting up an automatic payment plan where payments are automatically withdrawn on certain days of the month

Payday Loans: How do they work?

A payday loan is an advance on your paycheck, which you must repay when you get paid. Lenders will allow borrowers to borrow up to a certain amount but how much they can borrow depends on how much the borrower makes because lenders ask how much you make to decide how much they can lend to any person. Short-term payday loans usually have high-interest rates, which causes the amount owed each month to grow very quickly.

How to stop them from debiting your account?

Opting not to store debit card information with the company

When you sign up for a payday loan, they typically ask how to receive your funds. You can choose between having the check sent to an address or directly depositing the money into your bank account. Suppose you select direct deposit, and there isn’t an automatic bill payment service in place. In that case, you must opt not to store debit card information on file with the company because by doing so, they will automatically take any payments out of your account when it comes time for them to debit their customers’ accounts. This is how most lenders get people into trouble with overdraft fees and why many banks will only authorize withdrawals over $100.

Contacting the bank and requesting they only authorize withdrawals over $100

If you permit payday loan companies to debit your account, it is in your best interest to only let them withdraw a certain amount each time and ask how much they can take out of your account. Most banks will allow customers to authorize transactions for up to $1,000 or $5,000, but the customer must approve anything above that amount when the transaction happens. 

For instance, if you agree to have $300 taken out of your account every two weeks for four payments, you should also contact the bank and request that they limit how much anyone debit request is. If you don’t do this, you run the risk of having all four debits withdrawn on the same day, which could cause your account to be overdrawn.

Set up an automatic payment plan where payments are automatically withdrawn on certain days of the month

Many banks offer automatic bill pay, which will debit customers’ accounts for recurring monthly bills. This feature is what many people use to make sure that payday loan companies only take money out of their accounts when it comes time for them to receive their next check. This way, they don’t accidentally overdraw their account with overdraft fees, and their lenders can’t withdraw funds more than once per month even if they tried. 

For example, if you know that you’ll get paid every two weeks, then set up an automatic payment plan with your bank or credit union that ensures your lender only takes $300 per pay period. This way, you can never accidentally overdraw your account without realizing it.

If you want more information, contact us at PaydayloanHelpers today! We’ll help you find a solution that fits your lifestyle and budget easily. Our friendly staff is here for any requests or questions that arise about how to block payday loans from taking money out of your account.

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