Technology has drastically changed how the world works since the technological boom of the early 2000s. Being able to communicate instantly with loved ones worldwide and driverless taxis that may have once seemed like futuristic inventions are commonplace. However, one of the most drastic changes involves banking! From the ability to deposit checks from anywhere in the world using your phone to setting up automatic bill payments to avoid late fees, convenience is taking over. However, when there is an error with your automatic bill pay, it can cause a considerable amount of trouble. As such, understanding what your options are if you are negatively impacted by an error is critical. The following blog explores what you should know about these matters and the importance of working with an Arroyo Grande consumer lawyer to discuss your options.
What Is Automatic Bill Pay and How Do Errors Happen?
There are typically two services in place to help consumers ensure their payments are on time to avoid late fees and negative marks against their credit. The first option is autopay, in which you provide your banking information to a creditor, like a credit card issuer or utilities provider, who then deducts an amount of money from your bank account on a set date. The other option is bill pay, which allows your bank to submit payments to creditors without providing other companies with your banking information. Bill pay is generally considered a more secure method of scheduling automatic payments.
Unfortunately, however, you may find that errors in your bank’s bill pay system can result in late or missed payments to creditors. For example, if the bank’s servers go down or there is a technical glitch when processing your payment that renders it invalid, it can negatively impact your finances.
What Can I Do if I’m Negatively Impacted as a Result?
If you learn that a glitch in your bank’s system has caused a missed or late payment, it can cause a drop in your credit score, late fees, and increased interest rates on loans and lines of credit. As such, it’s imperative to understand your legal options if you are not responsible for the missed or late payment.
Generally, the first thing you should do is collect any evidence you have that a payment was scheduled to be sent on or before the due date, such as screenshots or confirmation emails from your bank regarding the pending payment. Next, you should contact your bank and request that they write a letter explaining that the error regarding the missed or late payment was due to a glitch in their system and, had that glitch not occurred, your payment would have been processed as usual. You should also print a copy of your credit report and highlight the late or missing payment. Finally, you should write a brief letter asking the credit reporting agency to remove the negative information from your account, and include copies of the credit report, a letter from your bank, and proof of the scheduled payment.
As you can imagine, these matters can be incredibly difficult to navigate on your own. That is why it is critical to connect with an experienced consumer defense attorney with Loker Law, APC. Our team understands the impact that another party’s errors can have on your finances, which is why we will fight to help you receive the best possible outcome for your circumstances. Contact us today to learn how we can fight for you.
