Industry Verticals · FinTech & BankingstructuralFintechLegaltechBillingB2C

Lender Continues ACH Drafts After Written Authorization Revocation

Three Sticks Lending acknowledged a written ACH authorization revocation but continued attempting unauthorized drafts under different entity names. Federal law requires lenders to honor written revocations, but enforcement depends on consumers catching violations themselves. Lenders using multiple entity names to obscure unauthorized ACH attempts exploit the fragmented visibility consumers have over their bank transactions.

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4.4

Signal

Visibility

4

Leverage

Impact

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Similar Problems

surfaced semantically
Consumer & Lifestyle84% match

Lenders continue bank withdrawals after borrowers formally revoke authorization

Borrowers who revoke ACH withdrawal authorization from short-term lenders report unauthorized debits still occurring afterward, in violation of electronic funds transfer rules. Limited customer support availability compounds the problem, leaving consumers unable to resolve unauthorized charges promptly.

Industry Verticals83% match

Fintech app conditions ACH revocation on completing account closure

A customer formally requested revocation of ACH withdrawal authorization in writing, but the company refused unless the customer also completed a separate in-app account closure process, despite Regulation E granting a standalone right to revoke ACH authorization.

Industry Verticals82% match

Subscription Companies Continue Charging After ACH Authorization Revocation

Consumers who formally revoke ACH authorization find subscription companies continuing to charge them and refusing to issue full refunds for unauthorized charges. This billing practice violates consumer protection law but companies exploit process complexity to limit refunds.

Customer Experience81% match

Lenders Ignore ACH Revocation Requests and Keep Withdrawing

A consumer revoked ACH authorization in writing but the lender continued withdrawing funds and became unresponsive to follow-up. This reflects a recurring gap in enforcing payment revocation rights and resolving unauthorized-withdrawal disputes.

Consumer & Lifestyle81% match

Banks Refusing to Block Unauthorized Recurring ACH Charges

Consumers who discover unauthorized recurring charges on their bank accounts are being denied assistance from their own bank in stopping or reversing the debits. Banks are citing inability to block specific payees despite Regulation E obligations to investigate unauthorized transactions. The asymmetry between merchant ACH initiation rights and consumer revocation rights is a persistent exploitation mechanism.

Problem descriptions, scores, analysis, and solution blueprints may be updated as new community data becomes available.