Customer apparently contacts an online payday loan company, gives account number and routing number to the rep :o, but when finding out they can only lend $350, declines the service. However, $350 is deposited in the account anyway (which she spends) and $105 has been taken out every month since.. The customer has (somehow) just noticed that ANY of this is happening, and wants the debits stopped.

I am super new to this side of banking.. just curious how others would handle this. I mean, she DID give out her info.

She also has not contacted the company because she doesn't have their phone number, which I will admit I can't find it either.

I am not entirely sure, but in my experience there has to be some kind of print that the payday loan company has to justify for the loan to go through.

You're right, the customer did give the info, but if they were told that the loan would not go through, she should still be able to hash it out with the company with any documented proof she didn't authorize the transaction. However, if there is difficulty finding contact info, I would be afraid of a scam situation.

If the customer wants to sign a WSUD that says they never authorized the debits, you can return the ACHs within the last 60 days. If appropriate, you can also contact the ODFI and request a copy of the authorization.
Another question is, how many debits have come in? Do they exceed the amount of the credit? Reg E places some liability on you, but the customer can not profit from the error. Since you know the debits are payments for the credit, they are all part of the same error. You should also look into the Reg E liability timeframes. It is hard to say exactly what course of action you should take without a lot more details, but a good place to start would be the BOL Reg E Calculator: http://www.bankersonline.com/tools/compliance/regecalc_liabcalctool.html

Make sure you follow the Reg E investigation time frames, but don't finalize any provisional credit you may give the customer until your investigation is complete or your 90 45 days is up.

Since this isn't a debit card, doesn't involve a new account and doesn't sound like it's an IAT, the investigation timeframe is only 45 days.

Since once the WSUD is signed and an ACH item returned, the situation is between the originator and the customer, generally it is not worth the bank's time to get in the middle. Return the debits per the customer's complaint and let the payday lender worry about trying to collect using other means if the debt is legitimate.

Thanks Brian - I corrected the post to avoid confusion.