AUTO PAY=LATE FEE


A

Abrams1117

I have auto pay set on a CC account. 3 days before a due payment I
used a card; they added those fees and put me over the payment giving
me a late fee.

I cannot get an answer out of them: How late are new fees added to
that VERY SAME month's fees?

If I made a purchase 2 days before the due date would that fee be
added?

What about 1 day?

What about 1 hour?

I think its crazy to up a monthly due fee when theres only a couple
days before that fee is due.

You owe $20.00 due on Friday. On Wednesday you make a purchanse now
you owe $21.00.
You auto-pay $20.00 then they charge a late fee of $39.00.

Sounds totally unfair.....unless we are supposed to check our accounts
every 3 days; 10 times a month?

Or, is it every day? Every 6 hours?

'C00-C00!'
 
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J

Justin

Abrams1117 wrote on [Thu, 21 Jun 2007 04:08:02 -0500]:
I have auto pay set on a CC account. 3 days before a due payment I
used a card; they added those fees and put me over the payment giving
me a late fee.
Perhaps you need to get your terms straight. A purchase is not a fee.
Maybe that's why you are confused.
If I made a purchase 2 days before the due date would that fee be
added?
A purchase is not a fee.
I think its crazy to up a monthly due fee when theres only a couple
days before that fee is due.
A minimum payment due is not a fee.
You owe $20.00 due on Friday. On Wednesday you make a purchanse now
you owe $21.00.
You auto-pay $20.00 then they charge a late fee of $39.00.
Sounds like you are only paying the minimum. You should pay in full.

A payment should be due based on the previous months statement, not
current transactions.

Which credit card company?
 
M

Mike Morgan

My online banking instructions say to pay five business days before due
date. That may cost a little interest, but avoids MUCH larger late fees.

Mike Morgan
 
T

Thumper

My online banking instructions say to pay five business days before due
date. That may cost a little interest, but avoids MUCH larger late fees.

Mike Morgan

There shouldn't be any reason for that in this day and age.
Thumper
 
D

David

Thumper said:
There shouldn't be any reason for that in this day and age.
Thumper
Thumper
Not all businesses accept payment in electronic transfer form. When a
payment needs to be sent to a business that does not accept payment in
electronic form, the issuing bank mails a check to pay the obligation.
The five business day advice is general advice, to cover the possibility
a check will have to be mailed.
 
J

joetaxpayer

Abrams1117 said:
I have auto pay set on a CC account. 3 days before a due payment I
used a card; they added those fees and put me over the payment giving
me a late fee.
There's something wrong here. I am looking at a statement 'closing date'
of 6/14, that's the night my bill is totaled for the month. I got the
bill in the mail around 6/20, and it's due to them on 7/4 (yes, I know,
a holiday, that's a different gripe). I have about two weeks after
receipt of that bill to pay it. 20 days from the time it was cut. Any
charges after 6/14 don't count until the next bill. Charges that put you
over the limit during that time will still trigger penalties, however.

You might want to clarify your issue. And any autopay feature should
(needs!) to be set for four days before the due date. Think about it, If
you set a date of the 15th of the month, that can be a Saturday, and a
monday holiday will put you three days late. I had a card that offered a
5% cash rebate on supermarket and gas, but they shortcycled enough
(payment due too soon after bill was received) that I set an automatic
payment for the day after the monthly bill was cut, just to be sure I'd
never have a late fee. The couple times the regular payment was late, I
only incurred a bit of interest, no penalty. (Too much of a pain,
stopped using that card).

JOE
 
J

Justin

joetaxpayer wrote on [Sun, 24 Jun 2007 10:37:03 -0500]:
You might want to clarify your issue. And any autopay feature should
(needs!) to be set for four days before the due date. Think about it, If
you set a date of the 15th of the month, that can be a Saturday, and a
monday holiday will put you three days late. I had a card that offered a
5% cash rebate on supermarket and gas, but they shortcycled enough
(payment due too soon after bill was received) that I set an automatic
payment for the day after the monthly bill was cut, just to be sure I'd
never have a late fee. The couple times the regular payment was late, I
only incurred a bit of interest, no penalty. (Too much of a pain,
stopped using that card).
If the autopay is setup form the card site, i.e. the card issuer pulls
from your bank account, it should never ever be late and you can only
set it up to be paid on the due date.
 
T

Thumper

Thumper
Not all businesses accept payment in electronic transfer form. When a
payment needs to be sent to a business that does not accept payment in
electronic form, the issuing bank mails a check to pay the obligation.
The five business day advice is general advice, to cover the possibility
a check will have to be mailed.

Every business SHOULD accept payment in electronic form in 2007.
Thumper
 
B

BreadWithSpam

Every business SHOULD accept payment in electronic form in 2007.
And I should have a pony.

In the real world, though, paper checks are still an
essential means of payment in the US.

In certain other countries, things have progressed a
bit (ie. Germany, Austria, Netherlands) (see, for
example, the Wikipedia page on "cheques" and
"The Future of Cheques").

Some interesting stuff.

(I suppose Paypal solves much of these issues, too,
but I don't much like them and cancelled my account
with them years ago - and getting my own money out
of them was like pulling teeth)
 
E

Elizabeth Richardson

Thumper said:
On Sun, 24 Jun 2007 10:12:12 -0500, David

Every business SHOULD accept payment in electronic form in 2007.
Thumper
Maybe so, but I can't make my insurance payments with a credit card and I
don't see any reason for any other kind of electronic payment.

Elizabeth Richardson
 
B

BeachBum

Elizabeth Richardson said:
Maybe so, but I can't make my insurance payments with a credit card and I
don't see any reason for any other kind of electronic payment.
State Farm will let you pay your insurance with them
on line with a credit card. Genworth does an automatic debit to
my checking account each quarter for my long term care insurance.
I charge everything I can to my credit cards - some are automatic
each month to the cc such as cable, internet and phones - and still
being of sound mind I pay the cc bills on line each month in full.
I have other utility bills which are automatic debits to my checking
account each quarter. I have been trying to eliminate checks
completely - I am down to about six per year!
BeachBum(Jim)
 
B

BreadWithSpam

BeachBum said:
on line with a credit card. Genworth does an automatic debit to
my checking account each quarter for my long term care insurance.
I have other utility bills which are automatic debits to my checking
account each quarter. I have been trying to eliminate checks
completely - I am down to about six per year!
Unfortunately, the management of such things tends to
be messy. I do not allow anyone to pull money from my
checking account (except, at the moment, my mortgage,
but that'll change soon). I very much prefer to push
money from my checking account (ie. electronic billpay).

That way I control all the transactions.

Automatic debit is nice in theory, but in practice,
dealing with errors, turning it off, etc can be a
huge pain.

Most checking account billpays nowadays, after you
make the first payment to a given biller, can tell
you whether they had to cut a paper check or were
able to do a faster electronic transaction.
 
J

joetaxpayer

Automatic debit is nice in theory, but in practice,
dealing with errors, turning it off, etc can be a
huge pain.

Most checking account billpays nowadays, after you
make the first payment to a given biller, can tell
you whether they had to cut a paper check or were
able to do a faster electronic transaction.
I prefer the 'push' as well. Having too many companies pulling money
from my checking would seem a bit risky.
If the OP had auto-pay with money pulled right out, how was any late fee
involved? I never understood original issue completely.
JOE
 
E

Elizabeth Richardson

BeachBum said:
State Farm will let you pay your insurance with them
on line with a credit card. Genworth does an automatic debit to
my checking account each quarter for my long term care insurance.
Well, I hardly think being able to charge the premium to my credit card is a
good reason for changing insurance companies. Somehow, writing a check
really isn't that much of an inconvenience. We go to the post office several
times a week to pick up our mail. And, you get to see old friends there,
too, occasionally. It's nice living in a small, remote town.

Elizabeth Richardson
 
B

BeachBum

Elizabeth Richardson said:
Well, I hardly think being able to charge the premium to my credit card is
a
good reason for changing insurance companies. Somehow, writing a check
really isn't that much of an inconvenience.
As they say - each to his/her own - I do find writing checks inconvenient
and
a complication which should be eliminated in financial transactions. I try
to
charge everything to one cc, if possible, and "push" (as Joe says) the
payment
each month to the cc company. To further simplify things I allow the
electric
company, the natural gas company and LTC company to debit my checking
account as the bills are due and have had no problems.
 
D

Douglas Johnson

Unfortunately, the management of such things tends to
be messy. I do not allow anyone to pull money from my
checking account (except, at the moment, my mortgage,
but that'll change soon). I very much prefer to push
money from my checking account (ie. electronic billpay).

That way I control all the transactions.
That is really, really, important. If some company's computer hiccups and pulls
to much money, not only do you risk other bill payments failing, but the power
is in the company's hands. They've got the money and you have to persuade them
to give it back.

I know of one case where a guy had a cell phone company pulling from his
checking. They pulled too much. He protested. Turns out the fine print said
he only had 15 days to protest. It was slightly longer than that, so the
company said "tough".

-- Doug
 
B

BreadWithSpam

Douglas Johnson said:
(e-mail address removed) wrote:
I know of one case where a guy had a cell phone company pulling from
his checking. They pulled too much. He protested. Turns out the
fine print said he only had 15 days to protest. It was slightly
longer than that, so the company said "tough".
Under the Electronic Funds Transfer Act (1978), the
customer must contact their financial institution
no later than 60 days from the first statement which
shows the error. If one calls (rather than writes),
one may be required to submit information in writing
within 10 business days.

One's loss for unauthorized withdrawals (usually meaning
lost or stolen debit cards) is limited to $50 if you
notify the financial institution within 2 business days,
or as much as $500 if the error is spotted and reported
within that 60 days. An error which sits on one's
statement without being reported for more than 60 days
may subject one to *unlimited* liability.

(that's all according to the law. Some banks give
stronger protections to users of their debit cards,
but it's unlikely that they'd offer stronger protections
for outside-authorized ACH "pulls" - like having your
gas company or cell phone provider auto-debit your
account)

There's an interesting page at
http://federalreserve.gov/pubs/consumerhdbk/electronic.htm
about some of this, and a little googling on
"Electronic Funds Transfer Act" is also quite interesting.

Anyway, while that "15 days" sounds a little suspect,
the general gist of the story - which is that if one
allows outside folks to pull $$ from your account
(especially as opposed to you pushing it out), watch
that bank statement *carefully*.
 
E

Elizabeth Richardson

BeachBum said:
To further simplify things I allow the
electric
company, the natural gas company and LTC company to debit my checking
account as the bills are due and have had no problems.

Well, the only debits I've allowed from my checking account were
contributions to my Vanguard Roth IRA. It's nice that I can now have my
withdrawals returning to it. Other than that, why don't you also charge your
electric bill to your cc - that's what I do - we have no natural gas here.

Elizabeth Richardson
 
B

BeachBum

Anyway, while that "15 days" sounds a little suspect,
the general gist of the story - which is that if one
allows outside folks to pull $$ from your account
(especially as opposed to you pushing it out), watch
that bank statement *carefully*.
Also, you can check your bank account anytime on line as well
as your credit card accounts. I quickly scan mine almost every
business day and recently found an incorrect charge on my CITI
cc from Paypal. They (Paypal) quickly corrected the error (?)
before the credit card statement was issues.

BeachBum
 
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J

Justin

BeachBum wrote on [Mon, 25 Jun 2007 16:00:44 -0500]:
As they say - each to his/her own - I do find writing checks inconvenient
and
a complication which should be eliminated in financial transactions. I try
Considering they are almost as dangerous as sending cash, yes, they
should be.
 

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