How to Stop a Direct Debit on a New Card

Direct debits are a popular way for businesses to obtain money from customers as they usually recur every month or few months. These may occur on bank cards and credit cards and prevent defaults on payments and loans. However, this can turn into a nightmare for a card owner as often these direct debits may not be canceled when requested, may be of fraudulent nature, have inaccurate figures, or may be unauthorized. When this happens, you need to know how to stop a direct debit method of payment.

Instructions

1

Figure out how you initially enrolled in the direct debit, if it was intentional. Most business that offer an ACH (automated clearing house) program requiring your signature. This may have been a paper contract where you signed your name with a pen or it could have been online where you simply typed your full name and agreed to an automatic debit. You will have to obtain a cancellation form stating your wish to cancel the debit just as you did to authorize it.

2

Call the company you wish to stop debiting your account. Do this immediately after a debit has been made since it may take up to two weeks to cancel the debit. If you wait too close to the time of your next debit, it may be too late to stop that payment and you may waste your money. Keep good records of when you called the company, who you spoke with, and if your state permits, record the calls.

3

Fill out all of the information on the cancellation form. You will need to have your full name, address, phone number, date of enrollment in automatic debit system, account and routing numbers, your signature, as well as the reason you wish to cancel. You may mail the form to the creditor, but the fastest way to stop the debit process is to fax it or hand it to them in person. Be sure to keep a copy for your records.

4

Contact your bank if the debit was unauthorized or the figures are not what you agreed to. If you do not know the source of the direct debit, your bank can find out and put a stop to them. In some cases, you may be able to retrieve the lost funds, particularly on credit cards. Debit cards can also be reimbursed if the charges are found fraudulent, however, this may take a little longer to investigate than credit cards.