STOP! In the name of regret: Handling stop payment requests for recurring debits

first_img ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr We’ve all been there… January first rolls around and our brains jump into overdrive thinking about all the things we are going to accomplish in the coming year. Whether it’s joining a gym to get back in shape, taking that pilates class we’ve been eyeing for months or registering for a meal delivery service in our never-ending quest to eat healthier, we have all signed up for something that felt like a great idea in the post-New Year’s haze of optimism.  But, by March, reality sets in, old habits take over and we know there just aren’t enough hours in the day to do all the things we want.Your members are no different. Complaints about how the yoga studio down the street just keeps billing every week no matter how many times you tell them to cancel are not that uncommon this time of year. It is important for credit unions fielding these types of complaints to be aware of their responsibilities when receiving stop payment requests for recurring debits from a member’s account.Recurring debits, or preauthorized transfers as they are known under Regulation E, are those transfers that happen on a regular basis to a member’s deposit account. They can occur weekly, bi-weekly, monthly or in any other interval as long as the interval is the same each time. They can also vary in amount from transfer to transfer. The key is that they happen regularly without the member having to do anything each time. If your credit union receives a request to stop a recurring debit, there are specific rules that must be followed. continue reading »last_img

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