Possible to stop electronic check payments?

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Navient, the student loan company (and evil twin of Sallie Mae), offered me a special payment plan last year, but in order to enroll in it, they said that they would have to take payments by electronic check.  To clarify what I mean by this, they specified check numbers that they would draw from my checking account for the entire two years worth of a payment plan.  Part of the deal was that I could stop this payment plan if I went back to school and enrolled in an in-school deferment.  So, I did go back to school.  I am in college full time right now, sent in all the paperwork, and was approved for an in-school deferment for the Spring semester, January through May.  But Navient keeps taking payments out of my checking account anyway, even though I am on an in-school deferment, and even though I asked them to stop taking payments and they agreed to stop.  I called my bank, Bank of America, and was told that I could stop payments on specific checks if I have a check number (and I would get charged for every check from Navient they reject), but other than that, they cannot keep Navient from taking money from my checking account, regardless of if I consent to those payments or not.  I did stop payment on some of the check numbers Navient planned to use, but Navient just used different numbers.  Of course, I will keep calling Navient about this, but I wish there were something I could do on the banking end without having to close my entire checking account over this.  I also wish there were a way to make Navient honor it's agreement.  These payments are not small either.  They are over $500 a month.  Any advice?

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Most of the electronic draws (often ACH) are repeated when the bank declines to pay. Your bank is most likely to charge you the equivalent of a bounced check charge and place a negative mark against your checking account.

Contact the CFPB? (if you have the initial terms in writing)

devyanks90 said:   Contact the CFPB? (if you have the initial terms in writing)
  
There's nothing in writing.  I tried, but when the payment plan was offered to me, I was told that by Navient that it was against their policy to provide the agreement in writing. 

Gauss44 said:   I wish there were something I could do on the banking end without having to close my entire checking account over this.
They can close the current account and open a new one, where the new account will then have a new account number.

Any payments you have setup that "pulls" payments from your old checking account ill need to be re-established at each place that does the "pulling," but "push" payments (initiated as a Bill Pay from the BoA end) will hopefully be easier to setup as your list of payees presumably won't disappear. The amounts you normally pay them might get wiped out, but if you have a list of payees, it should be far less effort to setup those reoccurring payments.

Any funds being directly deposited into your old checking account (pay checks, tax refunds, etc.) will likely also need to be updated to deposit into your new checking account.

  

feedback.studentaid.ed.gov

www.consumerfinance.gov

Have you gone to Navient.com and checked that you aren't on autopay or cancelled your autopay? It's possible that the payments are setup for certain dates and you can cancel them on there.

Yes, it is possible to block a recurring ACH debit without closing account if you know who makes the debit and what is the amount. You need to escalate it past the first level of the bank CS and have branch manager to get the needed paperwork from the back office.

Gauss44 said:   
devyanks90 said:   Contact the CFPB? (if you have the initial terms in writing)
  
There's nothing in writing.  I tried, but when the payment plan was offered to me, I was told that by Navient that it was against their policy to provide the agreement in writing. 

Then how was all this communicated?  How was "part of the deal" that you could stop this payment plan agreed upon?  You said you "sent in all the paperwork," but yet there was nothing in writing?  That doesn't reconcile.

I would escalate with Navient.  Closing your B of A account is more likely to have your arrangement with Navient going into arrears.  



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