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I used to be a fan of autopay. You set it up once and never have to worry about making that pesky, recurring payment again. But experience has taught me to carefully select what I pay with autopay. Otherwise, this quick and easy service can became a hassle to untangle.
My Water Bill
When I lived in Florida and North Carolina my water bill never exceed $50 a month. Therefore, when I moved to Washington State I thought nothing of setting up autopay with my water provider. To my amazement, however, I was billed $230 for two month's service. Apparently water in the rainy Northwest was painfully expensive.
Paying this bill with autopay meant that my bank was withdrawing $180 more than I expected. This made it difficult for me to pay other bills that week. Now, I never autopay a bill unless I can be sure of the amount in advance.
My Heating Bill
Living in Florida, I never experienced a seasonal spike in my heating and cooling bill. But when I moved to North Carolina I encountered a snowy winter for the first time. This meant that my July bill of $130 jumped to $350 in January.
Not realizing the seasonal fluctuation of my power bill, I set up autopay, which caught me by surprise when my bill went up by $220 in one month. Now I avoid setting up autopay for bills that change from month to month.
My DSL Service
When I set up autopay with my DSL provider, my monthly charge was $24.99. Twelve months later my rate rose to $39.99 without warning. I called my provider to demand a refund, at which time I was advised that my promotional rate had expired.
Though I was switched to a new 12-month promotional rate that brought my rate back down to $24.99, I had to wait until the next billing cycle to receive my $15 refund. Since then I avoid setting autopay for promotional rates.
My Telephone Service
Setting up autopay for my telephone service seemed safe enough, since I never dialed 900 numbers that could increase my bill amount. And yet, one month my charges were higher by $95. I realized that I was billed for Internet service, which I had never ordered.
My telephone provider concluded that someone had fraudulently used my phone number when they placed an order online. Though this charge could be reversed, my phone company was restricted by law from blocking the Internet provider from charging my telephone number again.
I canceled my autopay to avoid my bank being hit again for a fraudulent charge. And since then I avoid auto paying my phone bill.
Sport's Club Membership
When I signed a one-year contract with a local gym, I set up autopay as a matter of convenience. Unfortunately, the billing department made a mistake and charged me twice. When I asked for a refund, it was issued immediately and yet a week later I was charged a late fee for not making a payment that month.
In short, setting up autopay meant that every clerical error resulted in my bank account being hit. Since then, I never set up autopay with a small business that I have no experience with. Instead I ask that a bill be sent to me monthly.
Online Subscriptions
I like to listen to talk radio online. By paying a subscription, I avoid having to hear commercials. However, when I set up my payments via autopay I was hit with autorenewals after 6 months. To avoid the hassle of asking for a refund, I now make a one-time payment only. I can then choose to renew the subscription manually every month.
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