stopping automatic payment

**RaineyDaye** · 11-09-2008, 03:33 PM

My DD has gotten herself in a financial mess. She agreed to let a credit card company make automatic deductions from her checking account until she gets caught up. She owes about $4K. But she agreed to such a large amount deducted from each paycheck that she does not have enough to pay her other bills and pay for the necessities. I'm assuming that the credit card company will not be nice and agree to a smaller payment. Does any one have any idea what she could do to reduce or stop the payments? If she stopped the payments, wouldn't her bank charge her a fee?

**Squirt** · 11-09-2008, 03:42 PM

It sounds like she (or maybe a parent) needs to renegotiate with the credit card company itself.

**madhen** · 11-09-2008, 03:50 PM

The credit card company, under normal circumstances, can't force you to automatically send them a payment via EFT. Consequently, this is to their benefit, and I am sure that they would agree to a lower amount, provided it meets the minimum balance due. If she owes $4,000, I assume her minimum payment is pretty low. If I were her, and if she can't discipline herself to make the payments without it being deducted automatically, I would change the deduction to the minimum due, and would make every attempt to supplement that by making additional payments as money allowed.

**RaineyDaye** · 11-09-2008, 04:48 PM

Originally Posted by Squirt

It sounds like she (or maybe a parent) needs to renegotiate with the credit card company itself.

I think she should call the credit card company and make a different arrangement. I, as her parent, am not going to call them. She is in her 30s, and my help in the past has apparently done more harm than good, because she hasn't learned the painful lessons about borrowing money.

**Greebo** · 11-10-2008, 08:41 AM

Close the bank account and open a new one.

**Denvergirlie** · 11-10-2008, 09:02 AM

Originally Posted by Greebo

Close the bank account and open a new one.

That doesn't always work, the bank very well might then charge her overdraft fees and they pile up quick and can prevent someone from getting another checkign account in the future.

The first step is to have your DD call the credit card company and be honest with them. Keeping calling back until she gets someone that can help her. Have her be honest, this is what I make, these are my other bills, this is the amount I can pay. So long as that amount is at or above the minium payment they should accept it. $4K is nothing really, so her payments can't be that large unless she's overlimit or something.

And sometimes, when the bills can't be cut, more income needs to be found.

**madhen** · 11-10-2008, 09:08 AM

Not to mention that if she closes her bank account, she screws up any other automatic payments she may have going AND if the cc tries to get its EFT and the account is closed, she'll get socked with a late/no payment fee from them!

Sounds like she hasn't even taken the first step toward resolving her problem (which would be to call the cc and get the payment lowered). Closing her bank account is a bit drastic at this point.

**mmy2grls** · 11-10-2008, 11:43 AM

Contact CC to stop automatic payments then let the bank know not to take payments from them anymore.

**tmffv** · 11-11-2008, 11:46 PM

No advice, but I hope you daughter is able to get this taken care of. She definately needs to handle this on her own, but giving advice is never a bad thing (unless it's bad advice of course, lol!)

**missmanny** · 11-12-2008, 01:05 AM

Good for you for stepping back from this situation.

I am unsure what the situation is in America, here in australia you can stop a direct debit by sending a letter to the company with all of the details demanding that they stop the payment cc a copy to the bank.

After that if they still try to do it the bank can cut them off.

It is really had to organise though and you need to be tenancious. sometimes it doesn't work the first time.

**DonnainME** · 11-19-2008, 01:01 PM

You can put a stop payment on EFT - there usually is a charge from your bank.

I agree that she should (daughter) call the company and try to get it lowered first.

**pinecone** · 11-23-2008, 10:15 PM

Isn't it fun being a parent?? I am dealing with DD who is moving out of state in having her research individual medical insurance options. Time to get those big girl panties on. (She is in her early 20's)

piney

**Palooka** · 11-24-2008, 12:26 AM

I agree with Madhen. She just needs to talk to them and maybe the bank to be sure(I went through this once but not with a cc) and they can't legally keep taken it out of her account. Also I never got charged a bank fee.

She just owes the minimun and that is that for now.

I personally hate automatic withdrawls. I rather just pay them myself with a click on the putor,phone call with a debit card or by mail.

**larabelle** · 11-25-2008, 07:37 AM

Good for you for making her stand up and take responsiblity for herself.
I think she should call the credit card company and attempt to get the payments lowered to the minnimum.