Unauthorized ACH Debits in Alaska: Stop and Reverse

Practical guide for Alaska consumers to stop ACH debits and use a WSUD to dispute unauthorized payments without escalating conflict with the bank.

If money has started leaving your Alaska bank account through an ACH debit you did not authorize – or that you no longer want to continue – you usually have two main tools: an ACH stop payment to block future debits, and a Written Statement of Unauthorized Debit (WSUD) to reverse money that has already been taken. Understanding how both work together under federal law and Alaska statutes helps you act quickly, avoid extra losses and present your case in a structured, credible way.

ACH debits and stop payments for Alaska account holders

ACH debits are electronic pulls from your checking or savings account – for example, gym memberships, insurance premiums, loan payments, or “online check” payments. These transfers are governed mainly by the Electronic Fund Transfer Act (EFTA) and Regulation E, which protect consumers using electronic fund transfers, including ACH.

At the state level, Alaska has adopted a version of the Uniform Commercial Code (UCC). Alaska Statute 45.04.403 gives customers the right to stop payment of an item drawn on their account if they give an order that describes the item or account with reasonable certainty and the bank has a reasonable opportunity to act. 1 Although this statute is written with paper checks in mind, many banks use similar procedures for ACH stop payments, applying both NACHA rules and their internal policies.

When a stop payment is the right tool

An ACH stop payment is usually appropriate when:

• You previously authorized recurring ACH debits (for example, a subscription or loan payment) but now want to stop future withdrawals.
• You cancelled a service or contract, but the merchant keeps sending new ACH debits.
• You dispute the amount or timing of upcoming debits, and you want to block them while you sort things out.

In these cases, you are not necessarily claiming “fraud” – you are asking the bank to block future pulls from a specific company or for a specific transaction.

Legal framework: federal protections and Alaska rules

At the federal level, Regulation E (12 C.F.R. Part 1005) sets basic rights and responsibilities for electronic fund transfers. For unauthorized transfers, consumers generally must report the problem within 60 days after the institution sends the statement that shows the unauthorized transfer to avoid liability for subsequent transfers. 

At the state level, AS 45.04.403 provides that a stop-payment order is effective for six months, but an oral stop-payment order lapses after 14 calendar days if it is not confirmed in writing within that period. Written stop-payment orders can be renewed for additional six-month periods. 3 Your bank’s deposit agreement may refine how this is applied to ACH entries, but the structure (short-term oral stop, longer written stop, and possibility of renewal) tends to be similar.

In practice, this means Alaska consumers are protected by both federal Reg E rules on unauthorized electronic transfers and Alaska’s stop-payment statute, plus NACHA rules that govern how banks and payment processors handle ACH entries. 4

Step-by-step: how to place an ACH stop payment in Alaska

Here is a practical sequence Alaska consumers can follow when they need to stop ACH debits:

1. Gather precise information on the ACH debit

From your online banking or statement, collect:

• Company name (Originator) exactly as it appears.
• Amount and date of the last debit.
• Frequency (one-time, monthly, weekly, etc.).
• Any reference or ID shown with the debit.

The more specific you are, the easier it is for your bank to block the correct entry.

2. Contact your bank with a clear stop-payment request

Reach your bank as soon as possible – by phone, secure message, or in person – and tell them you want to place an ACH stop payment. Ask explicitly whether they treat this as a stop on:

• One specific debit only; or
• All future debits from that company; or
• All debits matching a specific amount and company.

Under Alaska law, oral instructions have a limited lifespan if not confirmed in writing. Most banks will ask you to sign a form or electronically authorize the stop to keep it in effect for the longer period. 5

3. Confirm in writing and ask about duration and fees

Ask the bank:

• How long the stop payment will remain in effect for ACH debits.
• Whether the stop covers recurring payments automatically.
• What fee, if any, they charge for placing or renewing a stop payment.

Then sign and return the stop-payment authorization promptly (by branch, fax, e-signature, or secure upload, depending on the bank). Keep a copy with the date, time, and name of any employee you spoke to.

4. Cancel the authorization with the merchant as well

An ACH stop payment blocks debits at the bank level, but you should also cancel the authorization directly with the merchant or service provider (by email or certified mail if possible). This helps prevent future disputes and shows you acted in good faith.

Using a WSUD to dispute unauthorized ACH debits

A Written Statement of Unauthorized Debit (WSUD) is a form your bank uses to document your claim that an ACH debit was unauthorized or otherwise improper. Under NACHA rules, when a consumer account holder notifies a receiving bank (RDFI) of an unauthorized debit, the bank must obtain a signed WSUD before returning the entry as unauthorized and re-crediting the account. 6

Recent updates from NACHA emphasize that WSUD forms should also warn consumers about the legal consequences of making false claims – including potential fines or criminal penalties for intentional misrepresentation. 7 This is why your Alaska bank may include strong language on the WSUD about truthful statements and penalties for fraud.

What your WSUD normally needs to include

While formats vary between institutions, most WSUD forms ask you to state that:

• You are an authorized signer or otherwise have authority on the account.
• The specific ACH debit(s) listed were not authorized, were revoked, or were processed incorrectly.
• You did not originate the entry with fraudulent intent nor act in concert with anyone else to do so.
• You are requesting that the bank return the entries and recredit your account, consistent with applicable rules.

The form must usually be signed or otherwise authenticated and dated on or after the settlement date of the entry, and it must be provided within the time frames allowed by ACH rules and Reg E.

Timeline after you submit a WSUD

Once you give your bank a properly completed WSUD, the bank will typically:

• Return the unauthorized debit using an appropriate ACH return reason code.
• Provisionally recredit your account while the claim is processed, consistent with Reg E investigation procedures.
• Complete the investigation within the regulatory time limits and notify you of the outcome. 9

If the bank later determines the entry was in fact authorized, they may reverse the provisional credit, so it is important that your statements on the WSUD are accurate and well-documented.

Practical examples and models for Alaska consumers

Example 1: Revoked gym membership draft

You cancel a gym membership in Anchorage, but the gym continues to pull a monthly ACH debit from your Alaska checking account.

• Use a stop payment to block future debits from that gym.
• If debits after cancellation were not authorized, complete a WSUD stating that the authorization was revoked as of a specific date and that subsequent entries are unauthorized.

Example 2: Unauthorized online “check” payment

You see a one-time ACH debit on your statement that looks like an online check to a company you never dealt with.

• Immediately notify your bank that the transfer is unauthorized and ask to file a Reg E dispute.
• Complete a WSUD specifying that you never authorized the transaction and did not benefit from it.
• Consider placing a stop payment or even closing and reopening the account if there are repeated attempts.

Example 3: Loan auto-debit in the wrong amount

A lender starts drafting a larger amount than agreed, pulling more than the payment stated in your contract.

• Use a stop payment to prevent further debits at the inflated amount.
• Work with the lender to correct the schedule and amount in writing.
• For any clearly unauthorized over-drafts, discuss with your bank whether a WSUD and Reg E claim are appropriate.

Common mistakes to avoid

• Waiting too long to review statements and missing the 60-day window to dispute unauthorized electronic transfers.
• Relying only on a phone call and never signing the written stop-payment authorization your bank requires.
• Assuming a stop payment alone will recover money already taken, instead of using a WSUD and Reg E dispute where appropriate.
• Giving vague information about the debit, making it hard for the bank to identify and block the right entry.
• Stopping payment at the bank but never cancelling the underlying contract with the merchant.
• Signing a WSUD without reading it carefully or without being absolutely sure the debit was unauthorized under the rules.

Conclusion: combining stop payments and WSUDs strategically in Alaska

For Alaska consumers, ACH stop payments and WSUDs are complementary tools. A stop payment is mainly about blocking future electronic pulls, often governed by your bank’s ACH procedures and Alaska’s stop-payment statute. A WSUD is the formal way to declare that an ACH debit was unauthorized or improper so the bank can return it and recredit your account under NACHA rules and Regulation E.

When used promptly and accurately – with clear documentation, written confirmations, and careful attention to deadlines – these tools can dramatically limit your losses from unauthorized or unwanted ACH debits while keeping your relationship with your bank as professional and structured as possible. For complex situations or large amounts, it is always wise to consult a qualified attorney familiar with Alaska and federal banking law to align your strategy with both contractual rights and consumer protection rules.

Guia rápido

• Objetivo: explicar, de forma prática, como um consumidor no Alaska pode usar o stop payment de ACH e o WSUD para bloquear débitos futuros e pedir devolução de valores já debitados.
• Quando usar stop payment: para impedir novos débitos eletrônicos de um originador específico (assinaturas, empréstimos, seguros) quando você revogou a autorização ou está em disputa.
• Quando usar WSUD: para contestar débitos já lançados que você considera não autorizados, revogados ou processados incorretamente, solicitando o retorno via regras ACH e Regulation E.
• Prazo crítico: revise extratos com frequência; em regra, você deve contestar débitos eletrônicos não autorizados dentro de 60 dias após o envio do extrato que mostra a movimentação.
• Forma de contato: avise o banco imediatamente (telefone, agência ou canal seguro) e pergunte sobre o formulário de stop payment e o WSUD específico da instituição.
• Documentação: guarde cópias de contratos, cancelamentos, e-mails, comprovantes de atendimento e dos formulários assinados, com datas e nomes de atendentes.
• Escalada: para casos de valor alto, conflito persistente ou recusa em processar sua reivindicação, considere registrar reclamações formais e buscar orientação jurídica especializada em direito bancário e de consumo.

FAQ

What is the difference between an ACH stop payment and a WSUD?

An ACH stop payment is used to block future electronic debits from posting to your account, while a WSUD is a sworn statement you sign to dispute debits that have already posted as unauthorized, revoked, or otherwise improper.

Can I use a stop payment in Alaska for any ACH debit I do not like?

You can usually request a stop payment on future ACH debits that you previously authorized but now wish to block, as long as you provide enough information and give your bank a reasonable opportunity to act before the next debit is processed.

How quickly do I need to report an unauthorized ACH debit?

Under federal Regulation E, you generally have up to 60 days from the date your bank sends the statement showing the unauthorized transfer to report it, but reporting as soon as you see the problem is always safer.

Do I have to submit a WSUD in person at my Alaska bank branch?

Not necessarily. Many Alaska banks allow WSUD forms to be signed electronically, by secure message, or by mail or fax, but you must follow your bank’s process and provide a verifiable signature or authentication.

Will the bank automatically refund my money after I sign a WSUD?

Your bank may provide a provisional credit while it investigates, but the final outcome depends on whether the entry is confirmed as unauthorized under ACH rules and Regulation E; if it is later found to be authorized, the provisional credit can be reversed.

Can my bank charge a fee for placing an ACH stop payment?

Yes. Most banks in Alaska charge a fee for placing or renewing a stop payment order; the amount and conditions should be disclosed in your account agreement and fee schedule.

What should I do if unauthorized debits keep appearing even after a stop payment?

If unauthorized debits persist, you may need to close and reopen the account, escalate the dispute with your bank, document repeated attempts, and consider seeking legal advice or filing regulatory complaints if your rights are not being respected.

Legal and regulatory references

This topic is primarily governed by a combination of federal and state rules, as well as ACH network operating requirements. At the federal level, the Electronic Fund Transfer Act (EFTA) and its implementing regulation, Regulation E (12 C.F.R. Part 1005), establish consumer protections, error-resolution duties, and liability limits for unauthorized electronic fund transfers, including ACH debits.

At the state level, Alaska Statute 45.04.403 addresses a customer’s right to stop payment of an item drawn on the customer’s account when the order reasonably describes the item or account and is received in time for the bank to act. Although originally drafted for checks, Alaska institutions often rely on similar principles, combined with internal policies, when handling ACH stop-payment requests.

In addition, ACH entries are subject to the NACHA Operating Rules and Guidelines, which define how receiving depository financial institutions may return entries coded as unauthorized and when a Written Statement of Unauthorized Debit (WSUD) must be obtained from the consumer. These rules also contemplate warnings on WSUD forms about potential penalties for knowingly false statements.

Each bank’s deposit account agreement, fee schedule, and electronic banking disclosures further specify how stop-payment orders and ACH disputes are handled in practice, including fees, renewal requirements and any additional documentation that must accompany your request in Alaska.

Considerações finais

For Alaska consumers facing unexpected or unwanted ACH debits, combining an effective stop payment with a well-supported WSUD can be a powerful way to limit financial losses and correct unauthorized transfers. The key is to act quickly, document every step, respect the time limits imposed by federal and state rules, and provide clear, accurate information to your bank.

Because every case depends on specific contracts, bank policies and factual details, these guidelines should be viewed as a structured starting point rather than a final answer to complex disputes. When the amounts are significant, there is ongoing fraud risk or the institution refuses to process your claim properly, seeking tailored legal advice becomes especially important.

These materials are provided for general informational and educational purposes only. They do not create an attorney–client relationship, do not constitute individualized legal or financial advice, and do not replace consultation with a qualified professional who can analyze the specific facts of your situation in Alaska or any other jurisdiction.