Technology has drastically improved the way our lives work, from making it possible to connect with family around the world to how we work. One of the most useful advancements is online banking! Not only can you deposit checks directly to your bank account from your phone, but you can also set up automatic payments to help ensure your bills are paid on time. However, it’s imperative to understand that, though uncommon, a bill payment error through your bank can occur. As such, understanding what to do if you are impacted is critical. The following blog explores what you should know about these matters, including the importance of working with an experienced San Diego consumer lawyer to help you seek justice.
What Is an Automatic Bill Payment?
Automatic bill payments are a way for consumers to make sure their monthly payments are submitted on time to avoid late payments, interest fees, and negative credit ratings. It’s imperative to understand that there are two different ways you can consent to automatic payments. The first is through “bill-pay,” in which you authorize your bank to send the payment directly to the creditor, whether it be your car insurer, credit card company, or landlord. The other option you may enable is auto-pay. When you set up auto-pay, you are allowing the creditor to take money directly from your account every month. As such, you must provide them with your banking information as they will have access to the funds held there. Because many are worried about providing companies with their banking details, many opt to set up bill-pay instead.
Unfortunately, there are several errors that can occur with automatic bill-pay. The most common reason is that the payment failed to go through to the intended creditor, which can result in late payments and strikes against your credit score. While the bank may be unable to make this payment due to insufficient funds, unfortunately, you may find that if there is an issue with their electronic system, your scheduled payment may not go through.
Additionally, you may find that despite having a scheduled payment, an error in the system results in more money than you had authorized being sent to a creditor. This most commonly takes the form of double payments, in which an automatic bill pay amount is sent twice due to a glitch in the bank’s system.
Can the Bank Face Liability for Its Error?
In the event your bank makes an error and you are impacted as a result, it’s important to understand that you have rights and protections. First and foremost, you should regularly check your banking statements to ensure payments are made on time and for the correct amount. If you discover that errors have occurred, you should contact your bank regarding the unauthorized debit or error and begin an investigation into the matter.
If you discover that the error has resulted in negative impacts on your credit report, you can file a dispute to have the late payments removed. You should print out a hard copy of your credit report and highlight the errors. Next, you should contact your bank and request that they write a letter explaining that the error was their fault, and you had the payments enabled, and they failed to submit the payment. You can send the letter and a copy of your credit report to the reporting agencies to have the information fixed.
Unfortunately, these matters can be complicated to navigate on your own. As such, it is in your best interest to discuss these circumstances with an experienced attorney with Barthel Legal. We can examine your circumstances to help determine the best circumstances for your situation. Contact us today to learn more.
