This is why I do not prefer automatic bill pay but I have a question.

My girlfriends car loan automatic payment is set up for the 3rd Monday every month. Today though she found, while actually moving money to her checking account for the payment tomorrow, that the car payment had already went through leaving her with a $30 overdraft fee. I am guessing her lender went ahead to debit the car payment Friday since tomorrow is a holiday. This sounds kind of bullshit to me. Unless there is some fine-print clause about holidays, is the creditor liable for the overdraft fee as they processed her payment early per contract.

1/17/2010 3:52:44 PM

It depends on the policy of the company taking the payment. Some take it the last business day before the holiday if the payment falls on a holiday, and some take it the first business day after.

I am sure there is something in the contract stating this policy.

[Edited on January 17, 2010 at 4:01 PM. Reason : a]

1/17/2010 4:01:24 PM

I do not submit routing/account information to the biller, but when scheduled payments fall on a holiday I have noticed my bank will move them to the earliest business day as well. Rent check was rescheduled from Jan 1st to Dec 31 and since it's not technically due until the 7th, I just manually moved it to the 4th.

The bank might refund that overdraft fee -- especially if the account she was funneling from is with them and if they see the payment history. Which if it's a savings account with the same bank, shouldn't they be linked for overdraft protection anyway?

1/17/2010 4:06:15 PM

Quote :

"Which if it's a savings account with the same bank, shouldn't they be linked for overdraft protection anyway?"

she does have overdraft protection but it is still a big fee.

1/17/2010 4:15:44 PM

What is the point of overdraft protection if they still charge a $30 fee?

1/17/2010 4:17:34 PM

^ Duh, to make money for the bank.

1/17/2010 4:25:04 PM

No, I get what the bank gets out of it. But what would be the benefit to the customer? I mean shit, my bank charges $35 for overdrafts. If having overdraft protection only saves me $5, then it's pretty pointless.

1/17/2010 4:30:54 PM

....i have overdraft protection with my savings/checking accounts. and when i have to use it, i don't get charged a fee for it.

what bank is she with that would do such a thing? seems pretty pointless to have OD protection if you get charged when you OD.

1/17/2010 4:33:17 PM

Yeah, my OD protection just pulls from my savings account with no fee. I mean, the only reason to even HAVE OD protection is to avoid OD fees.

1/17/2010 4:34:55 PM

my OD protection account wasnt initially linked with my checking account even though i was told it was

i OD'd once and called wachovia to complain, they apologized, waived the OD charge and my accounts have been linked ever since

1/17/2010 4:42:29 PM

I wasn't implying that they would be linked automatically, but that his girlfriend would be less than intelligent not to have them setup like that. Especially if she's moving funds around days before a scheduled EFT.

assumptions and unwarranted judgments ITP

[Edited on January 17, 2010 at 5:27 PM. Reason : .]

1/17/2010 5:27:03 PM

This is why I will never do auto pay.


Also, if you open up a checking account with ING, you get free overdraft protection.

1/17/2010 6:13:31 PM

^
Bingo. ING Direct and a few others have a very reasonable overdraft fee policy.

Quote :

"I am sure there is something in the contract stating this policy."

I do autodraft for everything, and I usually see it fall on the after date. e.g. Mortgage due on the 1st this month, didn't get drafted until Monday the 4th and posted Tuesday the 5th. Anyways, check the policy.

1/17/2010 6:32:56 PM

I lost my ING account due to immature Brian's financial ignorance.

USAA is a great alternative, however.

1/17/2010 6:44:40 PM

NCSECU is like $0.50

1/18/2010 9:57:00 AM

Quote :

"What is the point of overdraft protection if they still charge a $30 fee?"

because if they don't do that then you default on your purchase and then you also get a bounced check fee and technically writing a bad check is a crime. i don't overdraft, but i would rather the bank cover something and charge me than have the power company cut off my shit because the check didn't clear (and then get a charge too).

1/18/2010 11:06:22 AM

you are missing the point. most banks will still cover the overdraft if you don't have overdraft protection, they just charge you $35 for each overdrafted item. Overdraft Protection is designed to prevent that, as it pulls directly from your savings account rather than covering the overdraft + charging fee.

[Edited on January 18, 2010 at 11:14 AM. Reason : a]

1/18/2010 11:14:16 AM

n/m

1/18/2010 11:16:10 AM

She needs to read her contract.

1/18/2010 7:33:01 PM

i love these posts

1/18/2010 7:38:34 PM

^More than when someone wants to sue the local pub because of the 40 dollar "withdrawal" they made when the patron only enjoyed 20 dollars worth of jager bahmz on a debit card?

1/18/2010 7:54:00 PM

SECU FTW

1/18/2010 10:26:59 PM

USAA > ING > SECU > RANDOM CREDIT UNION > *

[Edited on January 18, 2010 at 10:32 PM. Reason : .]

1/18/2010 10:32:00 PM

That HO need mo' DO

1/19/2010 2:09:23 AM