Valid ACH Debit Revocation?

[vtxrider]

I have entered into a debt consolidation agreement with with a company. As part of the agreement, I signed an "Authorization to Settle Debt" with them. I thought this was giving the company a limited power of attorney for the companies listed for the debt consolidation.

The debt consolidation company faxed out ACH revocation letters on my behalf to the companies to revoke any ACH debit authorization, which are on my list of companies to consolidate the debt. The letter has my name on it, but it's on their letterhead. Several companies have since completed ACH debits on my account well after the revocation letter. I have disputed the ACH debits as unauthorized charges with my bank and provided my bank with the revocation letter sent on my behalf. The bank esentially says the revocation letter is basically worthless and is not recoginizing the fact that the companies in question had their ACH debit authoizations revoked (based on the letter that the debt consolidation company wrote and faxed for me) and as such finds that the charges are authorized.

From a legal standpoint, is the bank correct in that they do not have to honor the revocation letter sent to the companies by the consolidation company on my behalf, even though I gave the company a limited power of attorney?

 

[army judge]

It doesn't matter if what the bank has done is legal.

They've stated their position.

You have two choices.

The easy choice is to simply close your existing account.

That immediately stops the charges.

Then, open a new account (at a different bank) and don't sign any new authorizations.


The difficult one involves legal action.

That is also expensive and lengthy.

In the meantime, they'll keep draining your account.

I'd reluctantly choose the easy one.