I cancelled my insurance policy, but they won't guarantee that the last premium payment won't be debited from my checking account, so I called my bank and placed a stop on the ACH debit. They told me they can't guarantee the stop until three business days from the date I place it. I used to work at a bank and we placed a stop the moment we received it. How can they get away with this?
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Your bank may be alluding to the requirements of Regulation E, which allows you to place a stop payment on a recurring (preauthorized) electronic fund transfer if your stop order reaches the bank at least three business days prior to the scheduled date for the charge to post. In this case, the bank may be saying that if the stop didn't arrive before that time, it won't guarantee it will be able to prevent it from posting.
Make sure the bank actually accepted the stop and then follow up to review your account transactions online, if possible, to ensure that the debit doesn't post. It's possible that your bank can return it even if it does post, if it does so on the next business day.
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Your bank may be alluding to the requirements of Regulation E, which allows you to place a stop payment on a recurring (preauthorized) electronic fund transfer if your stop order reaches the bank at least three business days prior to the scheduled date for the charge to post. In this case, the bank may be saying that if the stop didn't arrive before that time, it won't guarantee it will be able to prevent it from posting.
Make sure the bank actually accepted the stop and then follow up to review your account transactions online, if possible, to ensure that the debit doesn't post. It's possible that your bank can return it even if it does post, if it does so on the next business day.
