Key takeaway: Do both steps — revoke authorization in writing with the lender AND place a stop-payment with your bank. Doing only one leaves gaps. Since March 30, 2025, a CFPB rule also limits covered lenders to two failed withdrawal attempts before they need new written permission from you.
- How payday lenders get access to your account
- Before you revoke — two things to check
- Revoking ACH authorization under Regulation E
- Revocation letter template
- Stop payment order vs. revoking authorization
- Notifying your bank
- The two-strikes rule — a 2025 federal protection
- Common lender tricks that make stop-payments fail
- Prepaid cards and cash apps
- If the lender keeps withdrawing anyway
- Frequently asked questions
How Payday Lenders Get Access to Your Account
When you took out the loan, you signed (or electronically agreed to) an ACH authorization — a document giving the lender permission to pull payments from your bank, credit union, or prepaid account. Under federal law, lenders cannot require a preauthorized electronic transfer as a condition of giving you the loan, but in practice most borrowers sign because they need the money. The authorization stays in effect until you revoke it. Simply closing the loan or telling the lender you're having trouble does not automatically cancel electronic access.
Before You Revoke — Two Things to Check
💡 State EPP first? If your state requires an extended payment plan and you haven't defaulted yet, requesting an EPP is often better than revoking access — it converts the loan into structured payments without triggering default. Once you've defaulted, the EPP option usually disappears. Check our payday payment plans guide.
Is the loan even legal? Some states ban payday lending outright. If a lender made an illegal loan, that changes your entire position. Check our payday loan laws by state.
Revoking ACH Authorization — Your Legal Right Under Regulation E
You have the right to revoke the authorization at any time. The cleanest approach is two steps: tell the lender in writing that you are revoking authorization, and tell your bank you have revoked it and ask them to block further debits from that company. Do both — relying on only one leaves gaps.
Revocation Letter Template
Send by certified mail with return receipt. Also call the lender and read the same language so you have both a written and verbal record.
[Your Full Name]
[Your Address]
[City, State, ZIP]
[Date]
[Lender Name]
[Lender Address]
Re: Account / Loan Number [XXXX] — Revocation of ACH Authorization
To Whom It May Concern:
I am writing to revoke authorization for [Lender Name] to initiate any ACH debits, electronic fund transfers, or other withdrawals from my bank account ending in [last 4 digits], effective immediately.
Do not submit any further payment requests to my account. Any attempt to debit my account after receipt of this notice is unauthorized.
Please confirm in writing that you have received this revocation and cancelled all scheduled electronic payments.
Sincerely,
[Your Full Name]
[Phone — optional]
Stop Payment Order vs. Revoking Authorization — Two Different Tools
Revoking authorization tells the lender they no longer have permission to pull money. Any debit they attempt after that is unauthorized. A stop-payment order is an instruction to your bank to reject a specific debit from that company. Under Regulation E, you can place one orally or in writing at least three business days before the scheduled transfer.
A stop-payment order alone does not revoke the underlying authorization — the lender can keep submitting requests. Revoking authorization alone relies on the lender actually stopping. Doing both closes the loop.
Notifying Your Bank
Call your bank or credit union and follow up in writing. Give them the company name exactly as it appears on your statements, your account number, and confirmation that you have revoked authorization. Tell them clearly:
Some banks charge a stop-payment fee — ask in advance, many will waive it. Monitor your account closely for the next two to three pay cycles.
The Two-Strikes Rule — A 2025 Federal Protection
💡 Starting March 30, 2025, payday and installment lenders must comply with new CFPB requirements: after two failed withdrawal attempts for insufficient funds, covered lenders cannot try again unless you specifically authorize another attempt. The prohibition applies across payment channels — a lender can't fail twice on ACH and then try the check network as a fresh start.
If a lender tries a third time without new authorization, that attempt is a violation. Document the date, amount, and merchant name — that record is what makes a complaint credible.
Common Lender Tricks That Make Stop-Payments Fail
- Resubmitting as a slightly different dollar amount so it no longer matches the exact stop-payment
- Changing the merchant name in the ACH description
- Splitting one payment into multiple smaller debits
- Switching from ACH to the check network or a remotely created check
⚠️ Practical fix: When you talk to your bank, ask for a broader block on the company and any related processor names that have appeared on your statements. Tell them you want all future ACH attempts from that originator rejected — not just one exact dollar amount. Changing amount, date, or channel also triggers a fresh advance-notice obligation under the CFPB rule; a lender who quietly splits payments without notifying you is likely in violation.
Prepaid Cards and Cash Apps
The same federal rights apply to Chime, Cash App, Venmo, Green Dot, and similar accounts. Contact both the lender (revocation letter) and the card/app provider (request to block ACH debits from that company). The CFPB specifically declined to exempt debit and prepaid cards from the two-strikes rule — it applies here too. Keep screenshots of every conversation.
If the Lender Keeps Withdrawing Anyway
- Contact your bank immediately and dispute as an unauthorized electronic fund transfer under Regulation E — ask for provisional credit within 10 business days
- File a complaint with the CFPB, referencing the two-strikes rule if applicable
- File complaints with your state attorney general and the FTC
- Document every date, amount, and conversation
⚠️ Tribal lenders frequently ignore revocation requests and claim state — and sometimes federal — law doesn't apply. Your Regulation E rights against your own bank still hold regardless, so the bank-side block is your most reliable tool. See Are Tribal Loans Legal? before deciding how to handle the underlying debt.
Frequently Asked Questions
Does revoking ACH authorization cancel the loan?
No. It only stops the electronic access. The debt remains.
How many days' notice do I need to give the bank?
At least three business days before the next scheduled debit for a stop-payment order to be effective under Regulation E.
What is the two-strikes rule?
Since March 30, 2025, covered lenders cannot attempt another withdrawal after two consecutive failed attempts for insufficient funds, unless you give new specific authorization. Use it as evidence in bank disputes and CFPB complaints.
Can the lender still sue me after I stop the withdrawals?
Yes. Cutting off ACH access does not eliminate their right to sue within the statute of limitations. Check your state's window in our SOL chart.
Should I ask for an extended payment plan instead?
If your state requires them and you haven't defaulted yet, often yes — it's usually a better outcome than default. See our EPP guide.
- Payday Loan Payment Plans by State — request a no-cost installment plan before you default
- Payday Loan Laws by State — check if your loan is even legal
- How to Settle Debt Yourself — negotiate once the automatic withdrawals are stopped
- Sued for Debt? — what to do if the lender files a lawsuit
- Are Tribal Loans Legal? — special rules when the lender claims tribal immunity