Automatic billing glitch overcharges woman by $142,000: How to prevent it from happening to you

Saving money on automatic billing glitch overcharges does not need to be complicated. Here is a clear, no nonsense rundown of what works and how to make the most of it.

Key Takeaways

• We are addressing the situation as fast as possible.
• Worth noting: one overdraft alone can cost you large bucks in bank fees.
• We will ensure that only the appropriate amount is deducted and excess deductions are refunded.
• More importantly, in fact, we have already begun processing refunds for some shoppers.

Getting the Most From Automatic Billing Glitch Overcharges

A few months ago, shoppers of Blue Cross and Blue Shield of Florida, known as Florida Blue, were facing some serious financial damage after a glitch in the system caused people’s accounts to get drafted multiple times for what was supposed to be their one-time monthly payment for May. Payment glitch causes thousands of dollars in overdraft charges In one case, a woman was billed 71 times (instead of just once) , which led to a total charge of $142,000 and sent her account into overdraft.

• According to Florida Blue, the glitch was caused by a vendor and the company says it’s working to fix the issue: We are highly sorry for the problems this is causing our members.
• In this case, considering how numerous times some people were billed, we’re talking about massive overdraft charges , and there’s nothing these Florida Blue shoppers can genuinely do about it until the company cancels the pending payments.
• How Florida Blue plans to fix the problem According a statement on the company’s website, here’s how the health care provider plans to resolve the issue: We are working to identify all overpayments proactively and refund them promptly.
• We will reimburse members for any bank fees incurred due to overdrafts caused by this issue.

Tips That Make a Difference

During this time, we will ensure that people who require care are able to get it, even if they are unable to make premium payments as a result of this issue. How to protect yourself from potential overdraft damage While Florida Blue says it is taking steps to resolve the issue and any financial damage it has caused for shoppers, the reality is, repairing situations like this can take time , sometimes a highly long time.

• Remember that and until aspects are straightened out , by Florida Blue and any banks involved , that money is gone.
• So depending on how numerous times a person was billed and how much was in that account, shoppers could be in some serious financial trouble for the unforeseeable future.
• For instance, if your was account was drained and you have no other cash that’s simply accessible, you’re out of luck.
• Most of the companies you do business with probably encourage you to for automatic bill pay.

Common Mistakes to Avoid

As a rule, paying bills online is super straightforward, which is why so numerous people do it these days. And you can pay pretty much any bill online , utilities, cell phone, tuition, cable, mortgage ,  you get the concept.

• But if you aren’t consistently on top of aspects (and even if you are), you require to know which methods are safe and which ones are not!
• Otherwise, you could simply find yourself in this situation.
• In short, setting up recurring payments is a excellent method to not forget about a bill that’s due.
• Here’s how automated debit transactions work: you allow the company to deduct money from your checking or savings account each month by providing your routing and account numbers.

Is Automatic Billing Glitch Overcharges Worth It?

The problem is, when you provide authorization to regularly draft from an account, it is an open-ended arrangement, regardless of your contract. In this case, shoppers’ accounts were drafted up to dozens of times when only one payment was supposed to go through.

• Worth noting: but on top of that, when you authorize automatic debits transactions, a company could continue pulling money from your account even after your contract for the service has ended.
• And they have the information they require to do so.
• Another problem with automatic payments is that regardless of how much money is in your account, that charge is going through no matter what.
• And if you don’t have the funds in there, you’ll end up owing even more due to pricey overdraft fees.

Where the Real Savings Hide

More importantly, bottom line: automatic debit transactions, especially recurring ones, can simply cause unexpected withdrawals to be made from your account, which in some cases can cause major financial damage. So let’s look at some safer alternatives.

• Safe methods to automate & stay on top of monthly bills 1.
• Online bill pay This is different from authorizing companies to make automatic debit transactions from your account.
• Remember that online bill pay is instead set up through your bank, which makes it a safer method to pay your bills electronically.
• Here’s why: you don’t require to provide your routing number and account number to anyone, since your bank initiates the transaction.

A Closer Look at Automatic Billing Glitch Overcharges

So your information is at no point provided to anyone else and isn’t at risk. You are also in control of when the payments are made, since they’re done through your bank.

• As a rule, so you pick the amount to pay (based on the recurring the monthly bill) and the date the payment is made.
• Be sure you have the funds available if the bill pay is set up through a checking account!
• If you’re applying a checking account to make the payments, set up an alert for before the date the payment is supposed to go through, that method you can be sure you have the funds available and avoid any overdraft charges.
• Apply a credit card Numerous companies now accept credit card payments online (instead of only allowing debit transactions) , which a much safer alternative for automating your bills.

What to Know About Automatic Billing Glitch Overcharges

In short, credit cards offer much better protections for you as a consumer, which is why you should consistently apply a credit card (instead of a debit card or drafts from a savings account) for any payments that could potentially cause you problems. You can set up automatic payments through your credit card to pay each bill before the due date each month.

• Then if you see a suspicious charge, you can dispute it immediately ,  and the process of getting your money back is a lot easier than when you’re hit with false charges on a debit card.
• If the charge pulls money directly from your checking, you could be out of plenty of cash , temporarily or even forever.
• Worth noting: and if you don’t have added cash on hand, that’s a large problem.
• Here’s a guide on your protections with debit vs. credit cards.

Frequently Asked Questions

How can I save money on automatic billing glitch overcharges?

Compare prices across a few retailers, look for active coupon codes, and time bigger buys around sales events. Payment glitch causes thousands of dollars in overdraft charges In one case, a woman was billed 71 times (instead of just once) , which led to a total charge of $142,000 and sent her account into overdraft.

Is it worth shopping around for automatic billing glitch overcharges?

Usually yes. According to Florida Blue, the glitch was caused by a vendor and the company says it’s working to fix the issue: We are highly sorry for the problems this is causing our members.

Smart Ways to Save More on Automatic Billing Glitch Overcharges

• Compare the final price including shipping, not just the headline number.
• Check for student, military, or first order offers you may qualify for.
• Time non urgent purchases around major sale events for the deepest cuts.
• Leave items in your cart for a day; some stores send a follow up discount.
• Pair cashback with a coupon so you save twice on the same order.

Final Thoughts

The bottom line on automatic billing glitch overcharges: a little research goes a long way. Compare your options, watch for seasonal offers, and never pay full price when a better deal is a click away.

Originally published at clark.com.