Auto credit card payment options

[fuzzybuddy]

On a post, someone mentioned using those automated credit card payment options. I got burnt for $800 by using one. I'm reposting it here so more people can see it. Thanks for putting up with me.

NEVER EVER use those automated credit card options. STOP THEM TODAY. You don't understand what they really mean. You give the company, whom you supposedly owe a fixed amount/month, the permission to charge you ANY amount at ANY time. If that company wants to charge you the limit on the card, the credit card concern HAS to pay it. You gave permission to do that!!!! DUMB ASS!!!I found that out, when my trash collection company, which gets $29/month, took out $800;and skipped town. I called the bank to cancel the charge. But since I gave my permission to give them any amount at any time; by law, they had to pay it. Guess who had to pay back the $800. DON"T USE THOSE $#@(&%$#@ automatic charge options.
And what do you think is going to happen, if your credit card is ever co-opted. Do you know how easy it is to change the payee on those automated charges? It takes four clicks- C A S H

 

[dpwspringer]

I'm not sure about this but I think some companies/concerns want you to set up automatic payments where THEY have access to your checking account. I would never do that either.

 

[Linda W.]

I've never liked those, partly because it's so hard to ever end them. With one of them, it took a registered letter with very explicit instructions to cease the the payments...months after I'd first tried to end them. guess I was lucky that that finally ended it.

 

[Don M.]

Automatic payments from either a credit card, or bank account, can certainly leave a person exposed to fraud. Such payment methods might be convenient, but can lead to problems. We have One such payment that we use....the auto pay/reimbursement of our company sponsored retiree HRA, for our Medicare/Dental/Vision coverage. However, rather than using one of our "normal" savings or checking accounts, we set up a modest and separate checking account that is Only used for these transactions. I would Never put our credit cards, or normal bank accounts into an auto-pay program.