I’ll Pass on Automatic Draft and Automatic Bill Payments
Wed, Aug 19, 2009
Checking account drafts and bill payments
I recently had an experience that makes me think automatic drafts and automatic bill payments aren’t a great option for our family now or in the future.
I took time the other night, as I typically do in the middle of the month, to pay bills which are due in the second half of the month. I reviewed my bundled bill for internet, phone and satellite and noticed it was approximately $40 more this month than past months. Aggh! I made a small change in my internet services last month that should have amounted to a $5 increase, but not $40!
Long story short, after three calls to my service provider (once they weren’t open and once I was disconnected) I was able to get the problem resolved and received a credit to my account. The customer service department was helpful and friendly. Once the problem was identified it was quickly resolved which made things less stressful but still an inconvenience.
After the call I wondered what would have happened if I had already made the payment via automatic draft. Would they have been as quick to resolve the problem? I’ll give them the benefit of the doubt. But even if they were more than willing to solve the problem in the same manner, I would have been inconvenienced with waiting for the credit to hit my account. Sometimes this can take several days.
Are automatic bill payments good options?
For similar reasons, automatic bill payment may not be a great option. In my case, I would have auto-paid the bill for less than what was due. If I hadn’t been paying attention, as is one potential problem with auto bill payments, my service provider would have more than likely charged me a late fee again furthering my inconvenience.
For all the bills that probably end up getting overcharged every month, automatic draft or bill payment don’t seem like great options. I’ve always stayed away from doing this in the past for the reasons mentioned. And now I think I’m convinced this service could make these types of inconveniences far worse to work through.
There is probably a greater chance for a mistake when some variable, such as making a change to your plan, enters into the situation. Remember, the computer programs perform the work, but not unless commanded by the customer service person entering the data. When humans enter the data, there will always be some mistakes.
Chances are you’ve already experienced problems with incorrect billing. Do you think the conveniences of these services outweigh any additional inconvenience you might experience because of a billing mistake?
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Seems to me that the farmer is blaming the tool, the weather and/or the mule for the result of his intended crop. What “saved” your hassle and wrongful use of funds was your knowledge of your bills and the process that brought you that awareness…not your mule. It’s not the click of the mouse or the stroke of a pen that provides you clarity into your finances. The time and insight you gain into your finances with the mouse far exceeds the confidence that one gains with the more manageable mule.
Electronic Payment is tractor and the pen is the mule….I guess it all depends how big of a field you are standing in front of that will dictate your tool.
mouse vs mule
DrTab, thanks so much for your comments. I love your interesting analogy. It may sound like I’m blaming automatic bill pay and automatic draft technologies a little bit. To save debate, I don’t dislike the services (maybe this post should have gotten a different title) and don’t mean to blame them. I agree it’s the knolwedge of the bills and process that brought me awareness and I appreciate you for pointing that out in your comments. I guess if the choice is to use these services, it’s important to keep a watchful eye on your statements.