Technology has drastically changed how the world works, as it’s now possible to communicate with people around the world in an instant. However, one major convenient change that has impacted many consumers is online banking! Not only can you make transfers between your accounts from the comfort of your home, but you can even deposit checks using your phone. Online banking has many benefits, including the ability to pay bills automatically. However, when an error occurs and your payment never goes through, understanding your legal options is critical. The following blog explores what you should know if you experience an automatic bill payment error and the importance of discussing your circumstances with a California consumer lawyer.
What Is Automatic Bill Payment?
Many banks allow you to enable automatic payments to help avoid forgetting to submit the owed funds, thus allowing you to ensure your bills are paid on time. It’s critical to understand that bill pay is different than auto pay. With auto-pay, you are allowing a third-party creditor, like your utilities company, credit card provider, or auto lender, to withdraw the funds directly from your account. As such, you must provide this company with your banking information.
However, automatic bill pay occurs when you allow your bank to issue a payment to a creditor on your behalf. This is generally a more secure option, as the creditor is not accessing your account. Typically, you can set a specified amount you would like to pay to the creditor each month. This is ideal for monthly payments that do not vary, such as a car loan or rent.
If the Bank Makes an Error, What Can I Do?
When you receive a notice from a creditor that your payment was not received or was received late, it can be concerning. Unfortunately, you may find that there was an error with the bank’s automatic bill pay system that resulted in your payment being withheld or distributed late. This can result in your credit score dropping, as the missed payment will appear on your report. Additionally, lenders may deny applications as a result of the negative marks on your credit history.
If this occurs, it’s important to understand that you can dispute the inclusion of this information on your credit report. You should contact the bank to ask them to provide a letter explaining that the late payment was a result of an error on their part and that you have the automatic payment enabled and scheduled to be sent on time. You should submit a copy of this letter to the credit reporting agencies and the creditor, along with a request to remove any adverse information from your credit report.
Navigating matters involving the bank and credit reporting agencies can be incredibly difficult. That is why it is in your best interest to connect with an experienced attorney with Los Angeles Legal Solutions. Our firm understands how frustrating these matters can be due to the impact they can have on your finances. As such, we will do everything possible to help you fight for the justice you deserve. Contact us today to learn more.
