CFPB: Automatic debits need authorizing

In a Nov. 23 alert, the CFPB reminded companies they must obtain authorization before automatically debiting a consumer’s account.

Additionally, the CFPB reminded companies they are required by law to provide notifications to consumers that clearly describe the terms of preauthorized automatic debits. Further, the agency said it published action letters that consumers may use to revoke a company’s authorization to automatically debit their accounts.

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