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CFPB issued a bulletin Monday alerting service providers that they are required to obtain a consumer's authorization before automatically debiting the consumer's account.

"Companies must get a consumer's authorization before automatically debiting their account," CFPB Director Richard Cordray said. "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."

Servicers are required under the Electronic Fund Transfer Act and Regulation E to get consumer authorization for electronic fund transfers, or debits, from consumers' accounts. CFPB also noted its sample action letters that consumers can send to companies, banks or credit unions in order to revoke permission for auto debits. Other sample letters are available to order a bank or credit union to stop payment or to notify institutions that an unauthorized debit has been made.

CFPB noted concerns that some companies are not meeting legal requirements for obtaining consumer authorization, including companies that provide consumers with a notice of terms for preauthorized auto debits that do not include information such as the timing and amount of the payments.

CFPB also advised consumers to be cautious and verify companies before agreeing to an automatic debit system.