NO automatic payments!

[Jstpssng]

Am I the only one who doesn't allow these? I have done so in the past with disastrous results... on one occasion I had to close out my checking account to stop them. That was years ago yet it now seems to be normal... I still can't bring myself to do it.
I would rather pay a year in advance than give somebody unlimited access to my finances.
Among other things I have to wonder how many people are paying for "services" they stopped using long ago. Granted that's their fault for not paying attention to their statements, yet still isn't right.
I've even had "exit questionaires" with that as one of the questions. Sirius for one, yet they still haven't done away with it, despite trying to get me back for the last 3 years.
I signed up for access to the local newspaper, not realizing I was agreeing to automatic withdrawals. It turns out that what they consider "news" is mostly opinion, and I get better local news from my MSN news feed. Go figure...

 

[/pine]

The USPS is cahoots with corporate America...the latter is trying to force us into as much of a paperless world as possible and the USPS is helping them...
Some time last year the USPS announced that first class mail would not be delivered as quickly as we have/had been used to...
...Now days...if you don't get a check off the day you get most bills...it wont get delivered in time to prevent a late fee...
...I have resorted to paying bills via e-check on a monthly basis...I learned my lesson about automatic payments from a checking account...

On an O/T side note...I recently mailed (10/6) a b-day card with a $50 gift card in a first class mailer (so I could track it) to Ocala FL......From N.GA it went to Atlanta, then to Jacksonville FL (10/9) (2 hrs to destination)...all kosher...Then it was in Lubbock TX...then Amarillo TX (10/12)...Didn't hear (tracking) from it again until (10/20) and it was "out for delivery"...!

 

[buckeyefarmer]

Yep, another cell phone bill late do to USPS.

 

[drssg]

I haven't had any bad experiences, but I'm also very reluctant to allow automatic payments. I have used sort of a sacrificial checking account that contains just enough money to pay the bills.

We received a lower interest rate on our mortgage by allowing automatic payments, and my horse vet offers a 5% discount for automatic payments. I have never used them just so I don't have to bother paying a monthly bill.

 

[Gee Ray]

I do not allow automatic payments. The companies will change the charges and not notify you. Pretty soon you’re paying three or four more dollars per month and nobody was the wiser.

I drive a hot shot truck and many of the brokers want to pay with ACH payment. The problem I have is the agreement you sign to allow the ACH payment also gives them the right to take money from your account. This is a no go for me. Many of the brokers started to charge a fee of up to $25 for a paper check. The only solution I found was to have an account set up only for deposits. As soon as the deposit is made into that account I transfer it to another account. That way if somebody tries to take money out the balance is zero.

I ask at my credit union and several banks about an account that will only allow deposits from an ACH. They all told me there was no way to stop the depositor from taking back the money.

 

[KennyG]

I use the automatic payments for gas and electric utilities. It's convenient and works well. I also use it for the credit card I have with my bank. I don't use it for other credit cards and cable and cell phone bills because I'm not so comfortable with them having access.

 

[Jstpssng]

I do not allow automatic payments. The companies will change the charges and not notify you. Pretty soon you’re paying three or four more dollars per month and nobody was the wiser.

I drive a hot shot truck and many of the brokers want to pay with ACH payment. The problem I have is the agreement you sign to allow the ACH payment also gives them the right to take money from your account. This is a no go for me. Many of the brokers started to charge a fee of up to $25 for a paper check. The only solution I found was to have an account set up only for deposits. As soon as the deposit is made into that account I transfer it to another account. That way if somebody tries to take money out the balance is zero.

I ask at my credit union and several banks about an account that will only allow deposits from an ACH. They all told me there was no way to stop the depositor from taking back the money.

Years ago I allowed an automatic monthly withdrawal. Although the terms and dates were specifically set out, they did it when they wanted to instead, and cost me several hundred dollars in overdraft fees. Then I ended up sueing them for non-performance... I eventually got my money back but they had it, interest free for about 4 years. That's AFTER covering the overdraft fees, plus cost and hassle of closing that account and opening another as noted above.

 

[scootr]

I use it for my mortgage only. It's an interbank payment so it's pretty safe. And I authorize an additional 1k payment each month against the remaining principle which is going down nicely

 

[Jstpssng]

I use it for my mortgage only. It's an interbank payment so it's pretty safe. And I authorize an additional 1k payment each month against the remaining principle which is going down nicely

I tried that with my CU for a while, as they hold my mortgage as well as the checking account where my paycheck goes, and all of my bills are paid from. First, I don't like waiting until the bill is due before paying it; rather, I generally pay about 10 days in advance. Every month I would keep checking to make sure the payment was taken out.
Then I started trying to prepay a bit every month... that didn't work very well. It turns out that any extra I put in goes toward my escrow rather than the principal. That's stupid for two reasons... every year they send me a refund check for a bit over a month's payment into my escrow. They also end up charging me more for interest than if it had been applied toward the principal.

 

[scootr]

Well - I'm having a different experience with B of A. I set the payment date. I set a notification over $x amount so I get an email each time they take it. $1k is really applied to the principle. Been doing it for a few yrs. I'm on the back end of our mortgage so an extra 12k annually is making the free and clear date look closer and closer.

 

[Torvy]

Just don't escrow. Cheaper to pay your taxes directly. The only problem I have had with auto payments is when I use a credit card for them. Conceptually it is great, but if the number gets compromised it is a PITA to change all of the associated accounts. We now do all of the auto payments on a card that is exclusively used for that purpose. We get cash back and have autopsy set up from the bank side to make sure we are never late. Rather than give a creditor your info, use the bank's service to pay automatically. Safer by far. I have never had a problem that way.

 

[Jstpssng]

Just don't escrow. Cheaper to pay your taxes directly.

I didn't have a choice. They don't charge me to do it anyways, I just wanted to get the darned loan paid off.

 

[KennyG]

I didn't have a choice. They don't charge me to do it anyways, I just wanted to get the darned loan paid off.

You might want to double check that. Most places don't require an escrow if you have 20% equity.

 

[tradosaurus]

Good point about having a sacrificial checking account.
For automatic payments I have:
Mortgage
Electric
Phone
Credit cards (2)
Tractor
Car

 

[scootr]

Good point about having a sacrificial checking account.
For automatic payments I have:
Mortgage
Electric
Phone
Credit cards (2)
Tractor
Car

You must go to work automatically too

 

[tshep]

I tried that with my CU for a while, as they hold my mortgage as well as the checking account where my paycheck goes, and all of my bills are paid from. First, I don't like waiting until the bill is due before paying it; rather, I generally pay about 10 days in advance. Every month I would keep checking to make sure the payment was taken out.
Then I started trying to prepay a bit every month... that didn't work very well. It turns out that any extra I put in goes toward my escrow rather than the principal. That's stupid for two reasons... every year they send me a refund check for a bit over a month's payment into my escrow. They also end up charging me more for interest than if it had been applied toward the principal.

I talked to 5 people at Wells Fargo about 2 week half payments until I got an old guy who actually knew how it worked and didn't lie about it. He said at payment time, the look in my interest free kitty and if I had enough for another whole payment, they would take 2. If not, they keep using my money for free! I did not chose that.
I do auto schedule my payment, and for years have just rounded up to $5 or $10 higher and even money, as an immediate additional principle payment. Easier for me to record in checking register, and they have to refigure each month - good!

 

[tshep]

Good point about having a sacrificial checking account.
For automatic payments I have:
Mortgage
Electric
Phone
Credit cards (2)
Tractor
Car

Fidelity sends my retirement. They got terrible after the post office got slow, and wouldn't fix it. My credit union was happy to give me a 'sacrificial' account to 'receive' checks with no cross links (pulls) to other accounts. So Fidelity can pull back their money or none at all.

I preached for a while at a country church that used BoA. They got slammed with 'analysis' fees of $65 a month until my wife helped them figure it out and get it back. Just an extra service they were happy to provide!

 

[tshep]

Am I the only one who doesn't allow these? I have done so in the past with disastrous results... on one occasion I had to close out my checking account to stop them. That was years ago yet it now seems to be normal... I still can't bring myself to do it.
I would rather pay a year in advance than give somebody unlimited access to my finances.
Among other things I have to wonder how many people are paying for "services" they stopped using long ago. Granted that's their fault for not paying attention to their statements, yet still isn't right.
I've even had "exit questionaires" with that as one of the questions. Sirius for one, yet they still haven't done away with it, despite trying to get me back for the last 3 years.
I signed up for access to the local newspaper, not realizing I was agreeing to automatic withdrawals. It turns out that what they consider "news" is mostly opinion, and I get better local news from my MSN news feed. Go figure...

Year in advance works great for gyms - I will never let a gym have my checking account or credit card. Typical contract will say they can use any account number they have ever learned.

 

[RSKY]

We only use autopay for utilities, Internet, cellphone, and one other service. All other bills set up so I can sit down at the computer and pay them online one day each month.

But we have had the opposite problem with one outfit, and that is stopping payments to us or rather to my deceased mother's bank account. It has taken us a year from her death to get this settled. Six long phone calls to them to get them to stop the payments to us. Those payments continued for months after we had called. Then when I mailed them a check to pay back the overpayment they held the check for six weeks before cashing it. We could not settle the estate and close the bank account until they did so.

RSKY

 

[jyoutz]

I do automatic payments for some things and have experienced no problems. I have my mortgage and auto loans with the same credit union where I have savings and checking accounts, and they are auto payments. I also have my paychecks auto deposited. My mortgage and auto loans are always on time and I don’t need to mess with them. I have the payment dates arranged so I know when they are happening. It has gone smoothly without any issues. Most other things I pay online, but not by auto pay.