Speaking of bank errors

[Red Squirrel]

So not too long ago I call up my bank to decrease my mortgage payments to the minimum as I was paying extra to pay it off faster, and I want to put that money towards the credit line which I just added a large sum of money to.

Somehow they interpreted that as me wanting to make a double up payment on my mortgage so today I notice that they took out my mortgage payment days early when it should have been taken out tomorrow after I get paid. To make things worse it went into overdraft which will cost me. So I call them up to explain the situation. They acknowledged the error and will fix it, but here's the kicker: they can only do it on the 20th? WTF? How hard is it add/deduct a few numbers in a database? They should be able to just click on the payment and hit "reverse" or something like that.

There's a lot of weird stuff like that with banks, like certain types of transactions on a weekend only happen on work days, etc... why? It's just basic math calculations going on a server somewhere. Why do some things have to wait? Does not really bother me, I just find it dumbfounding.

At the end of the day, at least they were able to detect the error and will fix it, though.

 

[Doppel]

LOL I swear I read it first as "squeaking of bank errors", squeak as in what a squirrel might do.

Yeah banks are slow as crap with certain things. I still can't believe to this day I have to wait overnight for cash deposit to hit my bank--and my current bank actually has ATMs that read the cash (not in an envelope), so there's really no way I can deposit nonsense. It's real, actual, verified money but I still have to wait a day.

 

[mmntech]

Everything the banks do is dumbfounding, like when they decided to use a Visa cash advance to pay off phone bill. Then charged me interest, twice, for it. The eventually admitted it was a glitch in their server and fixed it but still. Good thing I check my statements. Would have been a profitable glitch for them.

What bank are you with. Scotia are getting to be quite the dicks.

 

[SunnyD]

Banks: We'll happily REMOVE money from your account yesterday! But it'll take 7-10 business days to put money INTO your account.

It's kind of like Paypal. I don't understand how Paypal can easily ETF money out of your account instantly, but if you want to move money from your Paypal account into your bank account you gotta wait 2-5 business days. Seriously?

 

[Vdubchaos]

For god sakes people, stop giving banks/companies permission to withdraw money from your bank account at their will.

Think about it for a min.

 

[Sherman Bay]

It's kind of like Paypal. I don't understand how Paypal can easily ETF money out of your account instantly, but if you want to move money from your Paypal account into your bank account you gotta wait 2-5 business days. Seriously?

Yes. You're 100% correct. And moving money TO Paypal takes 2-5 days, too, unless it's an immediate purchase. Obviously, something is going on here, and I fail to see how they benefit. Floats like this are 2-sided.

 

[Red Squirrel]

For god sakes people, stop giving banks/companies permission to withdraw money from your bank account at their will.

Think about it for a min.

As opposed to what? Having to keep track of all these bills and do it manually? It's not 1900's here. I rather deal with a bank error here and there than have to manually manage all of that. Besides if they really wanted to maliciously take my money they would not really need my permission to do it.

What bank are you with. Scotia are getting to be quite the dicks.

I'm with Royal Bank, they're usually pretty good, think this is the first mistake I can think of. It would have been more serious if I did not have overdraft as it would have been a bad hit on my credit I should really learn to keep a buffer zone in there, but I always insist on putting extra cash on my credit line and only leave a few hundred bucks for bills.

Yes. You're 100% correct. And moving money TO Paypal takes 2-5 days, too, unless it's an immediate purchase. Obviously, something is going on here, and I fail to see how they benefit. Floats like this are 2-sided.

I always wondered if they do this because on a large scale, it means they have more money per month that's not theirs, so they gain more interest on it or there's some short term micro investing going on with it or something. So basically while my money sits in their account for 6 days, it's contributing to a large amount of money that has been there for a month so it has accrued interest.

 

[kami333]

As opposed to what? Having to keep track of all these bills and do it manually? It's not 1900's here. I rather deal with a bank error here and there than have to manually manage all of that. Besides if they really wanted to maliciously take my money they would not really need my permission to do it.

You can set up Bill Pay in the bank account, gives you more control so at least they can't do a double deduction.

 

[Red Squirrel]

You can set up Bill Pay in the bank account, gives you more control so at least they can't do a double deduction.

That only works for very specific things though. Most services wont support it.

Idealy it would be awesome if I could have everything come out on a specific time of the month but every service has their own billing cycle and they're not all the same so just have to deal with it.

 

[kami333]

That only works for very specific things though. Most services wont support it.

Idealy it would be awesome if I could have everything come out on a specific time of the month but every service has their own billing cycle and they're not all the same so just have to deal with it.

What have you found that won't take BillPay? I use it for all my utilities (gas, electric, cable, cell) as well as paying my credit cards. I even used to use it to pay my apartment complex.

 

[jagec]

When I transfer money to OR from my USAA account, it's INSTANT. I click "Confirm", and the money is there.

Mind you, the bank account that I transferred to/from isn't always so fast. Diagnosis? Banks are dicks. Except for USAA.

 

[brianmanahan]

 

[SparkyJJO]

That never happens.

 

[Lifted]

That only works for very specific things though. Most services wont support it.

Idealy it would be awesome if I could have everything come out on a specific time of the month but every service has their own billing cycle and they're not all the same so just have to deal with it.

Citibank would send a check if the payment couldn't be handled electronically, at no cost to me, and Citibank FUCKING SUCKS!

If your bank doesn't offer what that shitty-ass bank does, it's time for you to find a new bank.

 

[DAGTA]

I always wondered if they do this because on a large scale, it means they have more money per month that's not theirs, so they gain more interest on it or there's some short term micro investing going on with it or something. So basically while my money sits in their account for 6 days, it's contributing to a large amount of money that has been there for a month so it has accrued interest.

That is exactly the reason and, when dealing with large amounts of money, that short term interest is non-trivial. Banks can make millions per year doing that.

 

[Sherman Bay]

I always wondered if they do this because on a large scale, it means they have more money per month that's not theirs, so they gain more interest on it or there's some short term micro investing going on with it or something. So basically while my money sits in their account for 6 days, it's contributing to a large amount of money that has been there for a month so it has accrued interest.

But it takes several days to transfer Paypal funds in or out, so the float or delay would be a wash as long as the net amounts are the same.

So if no one benefits, and customers are inconvenienced, why do they do it?

 

[Craig234]

I wrote a $500 check to a relative, he deposited it to his Wells Fargo account.

Wells Fargo told him the check was never paid. My bank said it was.

I think I called Wells Fargo and they said talk to a branch manager. I went to a branch and asked for one and they said if you don't have an account, no one to help.

Finally someone said that she would help even though it wasn't the normal response.

She made some calls - and got nothing. They just kept insisting they never got paid.

I got a letter from my bank for them - it didn't get it resolved. Finally I think the account holder contacted them and then they decided it was paid.

No apology, just a correction, no explanation, no comment.

Later I got a promotion from them, open a $100 account, get a $50 bonus. I asked if there were any requirements to avoid fees - no.

I did it, watched the statements a while, $150 balance.

After a while not checking the account, I did - zero balance.

Turns out it was only fee free while I had a mortgage with them. When I didn't, fees kicked in and emptied the account.

The best they'd offer was a one month credit of $10 fees. Told them to keep it, I wouldn't be giving them more business.

I've heard a lot of similar stories about the service level.

 

[kranky]

Using your own bank's billpay is the best of both worlds. Takes very little time and you don't have to give anyone permission to withdraw from your account directly.

I use a credit union which isn't exactly a megabank and I can pay anyone with their system. And you can set up recurring payments, making it even easier.

I don't let anyone make withdrawals from my checking account directly. As you found out, when the other guy makes a mistake, you're the one who has to clean up the mess.

 

[Vdubchaos]

As opposed to what? Having to keep track of all these bills and do it manually? It's not 1900's here. I rather deal with a bank error here and there than have to manually manage all of that. Besides if they really wanted to maliciously take my money they would not really need my permission to do it.

How long does it take to sign on to your banking go to Pay Bill put in the amount and click send payment?

Managing your finances of regular basis is YOUR responsibility.

 

[kami333]

Seriously, give billpay a try. I was very reluctant to use billpay at first, a pushy Chase rep signed me up for it when I went in to change my PIN but now I love it. I used to only pay my gas bill every 3months or so because I didn't want to sign up for auto deduction and postage was 4x the interest (plus stamps are a hassle) but now I just do it right from my account.

 

[Red Squirrel]

What have you found that won't take BillPay? I use it for all my utilities (gas, electric, cable, cell) as well as paying my credit cards. I even used to use it to pay my apartment complex.

I'd say everything, because I never seen that option anywhere on any service. Usually it's either a check in the mail each month, or send a void check and get it automatically withdrawn. I always do the void check thing. At times, some services only take a credit card. Which is kinda annoying as I like having all my stuff come out from one place but can't do it for the few things that wont do the void check.

 

[Red Squirrel]

How long does it take to sign on to your banking go to Pay Bill put in the amount and click send payment?

Managing your finances of regular basis is YOUR responsibility.

It's more like, having to write a check, put it in an envelope, address it, add a stamp, and go drive to the post office to send it in. No thanks, I rather just have it done automatically.

There are a few services that have their own bill payment systems on their site but by doing it through the bank it works consistently with all services, it's just so much easier. Set and forget.

 

[micaturbo]

I'd say everything, because I never seen that option anywhere on any service. Usually it's either a check in the mail each month, or send a void check and get it automatically withdrawn. I always do the void check thing. At times, some services only take a credit card. Which is kinda annoying as I like having all my stuff come out from one place but can't do it for the few things that wont do the void check.

That doesn't sound right. You should have an option on your bank's site to pay your bills electronically. I'd say more major companies support this than not.

You pick the company you want to pay, you provide your account number and then boom you can send payments whenever you want, straight from your bank account online.

 

[Red Squirrel]

Now that you mention it I do have an option called "ebill" Their system is down now so I can't check it. Though I'm pretty sure I remember checking that and I had to pick from a drop down menu so there are decent chances not everything will be in the list. Basically the end company also has to support it.

This is not really any different than reauthorized payments anyway, so I'll stick with that, it's already setup and it works fine. I can live with an average of 1 mistake per 5 years.

 

[SparkyJJO]

Heck I use my bank's Bill Pay to pay an individual for my monthly rent. They mail him a paper check each month.