Bethany emailed in the following tip:
I just wanted to remind everyone to periodically check the bills and accounts you have set up for paperless billing with autopay or autodeposit…
I just found I had been charged $5 per quarter in our savings account for not updating our address — a loss of $35 because I didn’t realize it for so long! I don’t have our savings account at our regular bank because I don’t want to be tempted to use it… but that also meant I clearly didn’t look at it on any regular basis. We just let the money build.
Then I found that even though the bank withdrew the money for my car loan in June, the payment was never actually credited to the car loan company — potentially a $400+ loss if I didn’t find it! Again, with autopay, I saw the money go out and just assumed it made it to it’s destination – wrong!
Check those accounts, my friends! Don’t let someone take your hard earned cash!
Maryalene says
Here’s another crazy bank fee I just discovered.
We got locked out of my 80 year old-Mom’s online banking account, and after 6 months without logging in, they started charging $6 a month. When I got the first email about it, I deleted it because I thought it was a phishing scam. I couldn’t believe a bank would actually charge that!
karen b says
this is precisely why we are refusing to use anything besides good ole writing checks & sending them snail mail 🙂 if its not received we do get contacted…….. NO ONE has access to out accounts but us 🙂
MomofTwoPreciousGirls says
Just an FYI, about 10 years ago new technology was introduced along with a new regulation called Check21. By giving a company a check you give them the right to use ach (the automated clearing house) to electronically pull funds from your bank account, similar to bill pay.
Generally, the funds not getting to the destination happens when you do the payment from your bank’s online bill pay. A lot of times a check is being physically mailed by the bank on your behalf. You have less chance of that particular problem if you go to the company’s website and have them request the funds. Also, with online bill pay often the banks use it as a float to make money on your money. They will often place a hold on your funds 3 business days prior to when you have scheduled the payment. For example, if you enter you want a bill paid on Friday because that is payday, they can place the hold on Tuesday. If you don’t have sufficient funds on Tuesday they can charge you an overdraft and they make interest by lending your money for those three days. I personally do not use the banks online pay system ever…this comes from some that has worked at multiple banks for over 20 years.
Because of all my experience (and those of my clients) I do not set anything on autopay except for my mortgage and car payments, which I establish with the provider instead of the bank. I do all my banking and bill paying online. The bills get emailed, I look them over to verify the amounts and prior payments and ensure no changes went through without my knowledge. Then on the first of the month I pay everything (we budget on last months income so it’s all available on the first). This way I never miss anything, but it’s also simple.
teri goodman says
I had the same type of situation. I had our local phone company come and install dsl for me. After about a year, I needed to lower my phone service. When I called to have them go over my options with me; the rep ask me if I needed both internet modems. When I stated that I only had one-the dsl. He then informed me that no I actually had 2: the dsl and the dial-up. Seems the tech that installed the dsl never disconnected the dial-up and I had been misreading the bill. I then had to have the phone company and my internet company on a 3 way call to hash out who would give me my refund. The really bad thing was that even though I had overpaid for a year-I could only get 3 months of refund back!
Shasta says
I recommend calling the bank and asking them to refund the fees. It’s worth trying. I bet they will refund them, to keep you as a customer.
Mary H says
I don’t use auto pay for exactly these same reasons. I go to a website and arrange payments out of my account to pay a balance due, but no one – no one – reaches into my account and takes money out.
Lea Stormhammer says
We had the second experience with three different recipient accounts at three different times. It cost us over $1500 that we had pay double and approximately $300 took more than 8 months to refund (the rest took about 2 months). Needless to say, we don’t use auto pay anymore!
Lea
Uma @ Centsible Indian says
Good tip. I have not noticed auto pay payments after I set them up.