I live on Social Security Disability and nothing else. I've signed up for automatic payment for utilities, phone, etc., but I've had some really bad experiences! Set up your accounts to be paid on-line, but do NOT sign up for the automatic debit. I was charged twice in one month for both my electric and gas bills, and it overdrew me to such an extent that my bank charges came to $135!
So keep track of when your bills are due, go to the sites early in the month and schedule a payment for a specific date. No surprises, no anguish. Also, set up your bank account so you can see it on-line. Any "surprise" withdrawals can be spotted early and reclaiming that money is more easily handled. You'll have to call them, but it works out. I hope this keeps others out there free from the horror I experienced!
By Polly from Cedar Springs, MI
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Don't know how long it has been or if the fault was the utilities company, but the bank's over draw charges should have been paid by them upon your request.
I've tried to warn my mother about this possibility but she maintains she would trust her bank with EVERYTHING and she doesn't want to be bothered with "opening a bunch of bills"...how many could she have anyway!! I'll pass this on to her.
I agree about the bank OR the utility refunding the bank's charges. It doesn't hurt to ask. Nothing ventured, nothing gained.
Sorry to hear about your experience, but it's true that if the utility made an error they have to cover any bank fees incurred. I've been using auto-debit for years for all my bills both at home and at the office I manage, and haven't had any errors.
I have been tempted to sign up for automatic bill payments but I am so pleased with the bill pay that Bank of America offers that I haven't found it necessary.
At the beginning of the month I log on to my bank's web site and schedule payments on the days that I want them paid.
Have never had a problem with late payment or double paying.
Polly, you sound like one smart lady. If this can happen to you, it can happen to anyone. That's why I have only one bill set up for automatic payment, and one other is more or less semi-automatic. The company has my debit card number, but they have to have my personal authorization by phone each month.
I don't give any creditor my bank account info -- not unless they give me something in return. My car is financed with Capital One, and they gave me a slightly lower interest rate in exchange for my agreeing to automatic debit payments. But no one else gets to auto-debit my checking account.
I reconcile my checking account on a weekly basis, I do have some drafts for certain bills that are deducted once a month. I have had no difficulty with any double charges. We have been customers of our bank for over 40 years. If a draft does not come out as a debit at the time the bill was due, I would immediately call my bank representative and report it, but I am vigilant in reconciling my bank records.
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