Allright I'm off to talk to send the fax, talk to my bank manager and then to the post office. Thanks for your help ontrack it's extremely appreciated. Wish me luck, and I'll keep posting here on my progress on this over the next couple months.
Key phone call is to your state AG's office. Even though this appears obvious, you want to have confirmed that their actions were and are illegal, since that is part of why you are revoking authorization for their actions in refusing validation. You want your complaint initiated by phone even as you revoke debit authorization, and you will want to proceed with a written complaint. In addition, you might find out if there are other complaints against this company for similar abuse, and that is often best accomplished by phone.