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Specifically, the proposed comment explains that when a lender that is the consumer's account-holding institution initiates a payment transfer that results in the collection of less than the amount for which the payment transfer is initiated because the account lacks sufficient funds, the payment transfer is a failed payment transfer for purposes of the prohibition, regardless of whether the result is classified or coded in the lender's internal procedures, processes, or systems as a return for nonsufficient funds.

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A lot of times these companies initiate a lawsuit with the hope that you won't respond or put up a defense and they will win by default.

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They claimed that is what needed to be done before they could help me.