Laws about automatic withdrawl

Discussion in Credit Cards started by Rhoda D'ettore • Nov 1, 2014.

  1. Rhoda D'ettore

    Rhoda D'ettoreMember

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    I used to think it was a great idea to have my minimum payment automatically withdrawn from my checking account. There were never any late payments and all was great. Until, there wasn't any money left. After a prolonged unemployment, the money was not there. Even though I tried to terminate the automatic payments, the credit card company refused. They said it was a contract. Soon, they began charging me fees and late payments, and the bank charged overdraft fees. Finally, when I went back to work, I tried to make arrangements with the card, and they put through a $1000 payment on the date of my first paycheck. The paycheck they knew was going in only because I tried to make a deal with them.

    the bank said the laws in my state were clear: There was nothing I could do because I chose "minimum payment" for the deductions, and the company stated the $1000 was the minimum. Even more frustrating with regard to this situation, I had paid $50 per month in insurance so that this credit card would be paid automatically in the even of a job loss. The fine print stated it needed to be a specific credit limit/blalance for me to use it.

    Be very aware of your situations.