Electronic Fund Transfer Act (EFTA) Rights: Managing Automated ACH Loan Debits

Under the Electronic Fund Transfer Act (EFTA) and CFPB Regulation E (12 CFR Part 1005), consumers retain the statutory right to stop automated ACH debits from their deposit accounts at any time.

1. How to Properly Revoke ACH Authorization

1. Notify Your Financial Institution: Inform your bank or credit union verbally or in writing at least 3 business days before the scheduled transfer.
2. Notify the Loan Servicer: Provide written notice to the lender revoking permission for automatic bank withdrawals.
3. Arrange Alternative Settlement: Establish an alternative manual payment method (online portal card payment, check, or money order) to keep your loan in good standing.