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what's the point of auto-debit programs...

R

randomlinh

Lifer
When the company can't seem to take the money on time?

I have a loan through citibank for my private student loans. I opted to do the auto-debit program to a) get that .25 reduction in interest rate, and b) guarantee the 48 on time payments to get another .5 off and c) not have to worry about being late.

So I'm on my account to check my balance to submit to wells fargo for a private consolidation to see if they'll give me a better rate. Long shot, I know, but I wanted to try.

My account status at citibank is apparently delinquent. Payment was due on the 4th, and they never took my money. It's the weekend, so I can't talk to them. But I'm just fucking pissed right now.

Anyone ever had this crap happen? Yes, I could have set reminders and check my statement every month for the due date. But that defeats the purpose of auto-debit.
 
This has to do with the holiday. I?m assuming that they normally take it out on your due date, because that fell on a holiday when banks are closed and these types of transactions are not processed, they push the draw date back to next business day. It is common practice in the banking industry, instead of pulling the money earlier than someone would have anticipated.

Your account is labeled ?delinquent? because Citibank has a timer on your payments, when nothing is recorded and the due date passes, that label goes up automatically. You aren?t really ?delinquent? in a way that will harm your credit or standing with them. Think of it as a scare tactic in case you decided not to pay. In reality, the payment will likely be credited to your account effective to the original draw date in a few days.

A rate discount is a good reason for auto debit. I?m not really a fan of it, I prefer to retain the control on my end and use the recurring payment feature of my bank?s online bill payer service.
 
Originally posted by: whylaff
This has to do with the holiday. I?m assuming that they normally take it out on your due date, because that fell on a holiday when banks are closed and these types of transactions are not processed, they push the draw date back to next business day. It is common practice in the banking industry, instead of pulling the money earlier than someone would have anticipated.

Your account is labeled ?delinquent? because Citibank has a timer on your payments, when nothing is recorded and the due date passes, that label goes up automatically. You aren?t really ?delinquent? in a way that will harm your credit or standing with them. Think of it as a scare tactic in case you decided not to pay. In reality, the payment will likely be credited to your account effective to the original draw date in a few days.

A rate discount is a good reason for auto debit. I?m not really a fan of it, I prefer to retain the control on my end and use the recurring payment feature of my bank?s online bill payer service.
Click to expand...

This is correct. I also have a loan with Citibank on the autopay system and it will say "delinquent" if the normal auto-debit date happens to fall on a weekend or holiday. They will debit it the next business day, and it doesn't count against your credit or anything.
 
Well, they usually do a couple of days before the due date for me. At least I'd see a pending transaction at the bank end, which should have been the 3rd, which is why I was a bit aggravated. That and going through and trying to find out where my auto-debit settings are... they also have a piss poor lack of payment history on their site.
 
Originally posted by: SSSnail
I thought delinquent is a status given to seriously late account, like 60 days late?
Click to expand...

the status is what's reported...you can have 1-29 days late if the company reports at that level.

Most report at 30days and up.
 
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