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I took out a payday loan from LoanShopOnline.com last year for $500. I live in NY.. I couldn't pay them at the time... closed my bank account... opened new bank account. Today I had an ACH withdrawal for LOAN SHOP COLLECTIONS for $650. I went to the bank to file a dispute because I didn't authorize them to withdraw money from this account. We had to call the Loan Shop from the bank and the collection agent said my agreement gave them permission to withdraw from any future bank accounts until it was paid. I never actually signed anything, it was all done via email. What can I do?
Agreement gave permission to withdraw
Welcome to the forums!!!
Loan Shop is an illegal lender. Moreover payday lending is prohibited in NY. You should immediately file a complaint against them to the SAG or FTC. Contact with your bank and tell them to revoke ach withdrawal. I hope they will take necessary initiative.