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CFPB Alerts Companies about Obtaining Consumer Authorization for Recurring Auto Debits
Tuesday, December 1, 2015 6:40 AM

Bureau Publishes Action Letters for Consumers Seeking to Stop Auto Debits

The Consumer Financial Protection Bureau has issued a bulletin alerting companies that they must obtain authorization before automatically debiting a consumer’s account. The bulletin also reminds companies that they are required by law to provide notifications to consumers that clearly describe the terms of preauthorized auto debits. In addition, the Bureau is publishing action letters today for consumers seeking to revoke a company’s authorization to auto debit an account.

“This bulletin makes clear that companies must get a consumer’s authorization before automatically debiting their account,” said CFPB Director Richard Cordray. “Consumers also have the right to stop these charges at any time. They can use our action letters or submit a complaint to the Bureau if they are having problems managing or stopping auto debits.”

Read the bulletin.