Lenders frequently require electronic ACH debit authorization for automatic payment deduction. Federal regulations protect consumer rights to revoke ACH access at any time.
1. Electronic Funds Transfer Act (EFTA) Rights
🛡️ NACHA Consumer Rights Checklist
- Borrowers can revoke ACH debit authorization by notifying the lender in writing 3 business days before scheduled transfer.
- Lenders are legally barred from conditioning credit approval solely on electronic wage deduction.
- Banks must honor written Stop Payment orders within 14 calendar days of verbal notification.