Can I cancel automated payments to collections?

Question

I’m currently in debt and currently reading the Dave Ramsey book to help myself out. I’ve made slight progress in already paying off 3 of my smaller debts. Which I’m making slight progress.

I’m currently making payments on a charge card with a collection agency weekly. These people still harass me at work, even after I have asked them to NOT call me at work. And in reading the Ramsey book, I’ve read that setting up automated payments through your bank is the WORST thing you can do. So I’d like to cancel the automated payments and use the money to save up and get a settlement offer.

Since I’m almost positive the collection agency won’t make this easy, I’m wondering if I’m able to do this. They do NOT have a time frame as to how long this would continue. I’ve had people tell me to mention that I’m filing bankruptcy (which I am not) to get them to stop. Others have said to close my bank account and start another.

Answer 1

Send them a certified letter in the mail telling them to no longer contact you at work and that the only way they can contact you is through the mail.  According to debt collection law, you can do this.  I did it! (The article below tells you how.)

I highly doubt you can cancel the automatic payments.  Laws about doing this and garnishing wages vary from state to state.  At this point, getting out of the automated payments will look like you are going back on the agreement of repayment.  I would try renegotiating the debt for a smaller amount and then saving every penny you have to offer a settlement at a later date.

Answer 2

Allowing the collection agency direct access to your bank account was a huge mistake.  Send the collection agency a certified, return receipt letter (CC your bank) indicating that you are withdrawing the authorization to debit your bank account.  Hopefully, this will be enough to stop the automatic payments -- but it might not.

You can't just close the account.  They may be able to debit the account and you end up with a negative balance bank account.

Include in that letter to the collection agency to stop calling you at work as your boss does not permit personal calls.  They have to stop.  You can ask that all communication be via mail.  Most will comply but the "mail only" is NOT part of the FDCPA.  The FDCPA allows you to send a cease and desist all contact but if you send such a letter, they are likely to immediately sue you.