(no subject)

[winterbadger]

So, I'm curious about people's banking habits. Some people set up automatic payments from their bank account (like having a utility automatically deduct its bill from their checking/current account, or having their bank automatically pay a set amount monthly to their credit card balance). I heard of this from friends in the UK long before I ever heard of it here, so I've always thought of it as a UK thing. But I discovered in asking around at work that quite a few of my colleagues here do it too. So, a poll!
[Poll #1461690]

I realise that many of my friends are *from* one country but living in the other (in some cases, that's how we became friends!), but I'm mostly interested in what people's preferences are by nationality and upbringing, not by where you happen to be at the moment.

Comments

[keethrax.livejournal.com]

Yes. From the US. My bank gives me a cheaper rate on my car loan if the payment is automated.

The rest are still paid "by hand" whether that's by check or online.

[keethrax.livejournal.com]

Also. I'd consider it for any flat-rate utilities and such. But I like to check over the other ones, to both check my usage, and their billing.

[tysolna]

Yes, German living in the UK. I've been used to it from Germany (it is usual to pay your bills via automatic payment or give companies the right to deduct from your account), and I find it easier.

[winterbadger]

Hey you! How's your cold? Have you been back in to work? I hear it was pretty grisly...

[tysolna]

Hey! Voice still hoarse, coughing a lot, feeling a bit better - and yes, it was... *sighs* for C more than for me.
Yourself? ;)

[winterbadger]

Not too bad. Enjoyed the music nights lately, but I need to get work finished for my class. Problem is that when it takes me two hours to get home on my "free" night, I don't end up feeling like working much. The weekend will be very full.

[winterbadger]

Glad to hear you're feeling better, though. :-)

[keethrax.livejournal.com]

Nice icon.;)

[tysolna]

Likewise. ;)

[wolfette]

I only use it when it's part of the deal (bank loan payments - they won't allow you to do them any other way) or something that's going to be a regular and predictable amount (mobile phone contract - I never go over my limit - and cinema subscription). Other utilities - gas, electric, council tax - we pay "by hand", though sometimes this means we have to pay a surcharge.

[reasdream.livejournal.com]

Okay, I kinda lied - I have one authroized automatic withdrawl - it goes from my checking to an ING savings account every paycheck. I don't count that, since I am essentially just moving my own money around.

[hobbitblue.livejournal.com]

Yep, I love Direct Debit, as do my parents, we all use it for everything from utlities to magazine subs to the car insurance, Sky tv, its a very streamlined system though of course you still need to keep a close eye on the bank account to make sure things are leaving when they should.

Its interesting to find US folk doing it, a lot of people I talk to seem to do things personally or in the bank via check/cheque rather than our way which always seems odd.

When I lived in Germany in the early 90s I used a similar system to pay my rent, they love their bank transfer there.

[winterbadger]

though of course you still need to keep a close eye on the bank account to make sure things are leaving when they should.

And this is exactly why I would never in a million years allow ANYONE the authority to debit from my account without my say-so. I gain nothing (I still have to track my bank account all the time to make sure they didn't screw up) and I stand to lose money.

One thing gets effed up, one person makes a mistake, and I'm out money I don't owe, and probably maying a huge overdraft fee on top of it. Maybe I get the money back, maybe (maybe!) the bank waves the overdraft fee if I can convince them it's their fault, but I've still spent time, money, and effort on something that is supposedly a "convenience".

If someone won't do business with me without I allow them direct, unsupervised access to my bank account, well, I'll just have to find a way to live without their goods and services.

[dativesingular.livejournal.com]

And it definitely does happen, so it's important to check your balance regularly. BT deducted our internet charge *twice* back in July, and then someone screwed up and our internet got disconnected, because apparently the BT phone provider and the BT internet provider are actually two separate countries, and for some reason I don't understand, funds can't be transferred. We got it sorted out, obviously, but not without an angry Mr. Singular on the phone for 45 minutes.

[winterbadger]

apparently the BT phone provider and the BT internet provider are actually two separate countries

Clearly the "megacorporation as proto-nation state" thing has really taken off! ;-)

[hobbitblue.livejournal.com]

Everything is geared up for direct debit over here though and it runs pretty smoothly (well, maybe 3 glitches in a decade for us? not bad going..). I'd hate to have to spend time sorting cheques and making direct payments and remembering to do them on time and allowing extra time for things to clear, ugh.

each to their own though, and I'm not sure I'd been nearly as sanguine about US banks and companies taking charge, they seem less... organised.. when it comes to their customers.

[winterbadger]

I'm not sure I'd been nearly as sanguine about US banks and companies taking charge, they seem less... organised.. when it comes to their customers.

So far all the horror stories I'm hearing are from UK banks...

[hobbitblue.livejournal.com]

You're clearly not going to be converted then :)

[winterbadger]

Well, not based on the evidence I've heard! :-) It sounds like UK banks are even less reliable than US ones, and over 15% of people who do direct debit report having problems with it! Whereas none of the people who don't have direct debit have had problems with it... ;-)



(This is, of course, a highly unscientific poll. What I find most surprising about all fof this is that, in fact,t he number are bearing out my initial impression that this is more common practice in the UK than in the US, it's just more common in the US than I thought. What surprises me most about this is that I've gotten the impression--again, anecdotally, from my editorial colleagues--the UK folks tend to be *much* more paranoid about identity-theft and general online security issues than US people, which makes their willingness to use DD that much stranger. Another impression I should test, perhaps...)

[dativesingular.livejournal.com]

I had this done before I ever moved to the UK. Partly because I would have it set up so the money would come out all on the same day right after I got paid (haven't managed to consolidate dates here yet unfortunately) so it wouldn't be as if there was "fake" money in my bank account, if that makes sense? It was just easier for me to look at if my bank balance was my actual leftover disposableish income.

Additionally, if my student loan payments are directly deducted from my bank account, they cut off .25% from my interest rate. Not super-huge, but when you're talking about several thousand dollars, it's worth doing. I believe I may have gotten something similar through Honda back when I had my Fit, but I can't remember the details there.

[pisica.livejournal.com]

I can't remember if I had any automatic debits set up when I was in the states, but they've been a godsend since I've moved overseas - my US bank automatically pays my US credit card, so I don't need to worry about that, and once the student loan payments kick in, the bank will pay those too (and I should get a 0.25% interest reduction, which can't hurt).

The problem is when they mess up. I had my UK bank automatically transfer money from my checking to my savings account every month, and then I canceled it, but the order didn't go through for some reason. Imagine if that had been rent to an ex-landlord or something!

In the UK my direct debits are to the landlords and (when I get around to setting it up again) to the student gym, and I pay the credit card bill automatically. None of these have ever had any problems. I would probably be a bit warier about paying utility bills directly, and in fact I don't think I've ever done that.

[winterbadger]

The problem is when they mess up. I had my UK bank automatically transfer money from my checking to my savings account every month, and then I canceled it, but the order didn't go through for some reason. Imagine if that had been rent to an ex-landlord or something!

Exactly! I've had banks screw up so many times that I don't think I want to trust them to handle debiting money (other than their fees, which I can't prevent).

[schizokitty.livejournal.com]

I hardly pay anything by hand. Things like utilities, mortgage, and other regularly recurring payments (certain charities, Netflix, Rhapsody, etc.) are autopay. I pay credit cards online, though obviously not by autopay, as I have to check the charges first. I usually set up autopay through the company who does the billing rather than through my bank directly. I could set up a few more fixed-charge paper bills (garbage, for instance) through the Bank itself, but it's more work than setting up through a company's website, so I haven't gotten around to it. ^_^

I'm not sure that online/autopay is much more dangerous than paper billing, for me, anyway. I've had paper bills lost in the mail, resulting in late fees and such, but those can be worked out over the phone. I've had a few (very few) cock ups with electronic transfers, and I've been able to fix those by phone, too. What I like about electronic payments is that I usually get an almost immediate confirmation of my transaction, with a confirmation number I can use to resolve any disputes. And I get two confirmations with credit cards: one when I set up the payment, and another when it actually posts. This is much easier to keep track of than paper, where I had to hope it got there on time, and, if it didn't, I didn't find out until the next month, with the late fee and all. ^_^

[winterbadger]

I don't have an issue with online payment. I pay almost all my bills online. I find that very convenient, especially when the creditor or the bank is set up to send me an email when it's time to pay them.

I have a big problem with my bank, or even moreso, some company, having authorisation to go into my bank account and take out money whenever they like. Even on this thread there's been a number of cases cited of such transactions being done when or for amounts that the account holder didn't authorise.

[schizokitty.livejournal.com]

I don't know how they "take out money whenever they like" -- there are forms and schedules and things. I'm sure there are opportunities for mistakes (what situation hasn't?) but I've had-auto deduct for utilities and Dharma Rain for years and have had no troubles.

[winterbadger]

I don't know how they "take out money whenever they like" -- there are forms and schedules and things.

Well, you would think that, but it clearly still happens anyway.