Bank’s Paper Check Policy Leads to Stolen Mortgage Payment
A woman’s online bill payment experience turned into a financial headache when her mortgage payment was lost after her bank mailed a paper check that was later stolen. Angela Truett, a diligent mortgage payer, received a letter from her lender stating that her payment had not been received and a late charge was now applicable.
Truett has consistently met her mortgage obligations without delay. However, on a recent Saturday, she opened a letter that caused her alarm. “I got a letter stating we have a late charge, and my payment was never received,” said Truett. The monthly mortgage payment of $1,200 had vanished, prompting her lender to advise her to make the payment again to avoid damage to her credit.
Upon checking her bank account, Truett discovered that her bank had printed and mailed a paper check, which was subsequently stolen and cashed at a local gas station. “I just want it fixed. And then they can go do investigations,” Truett expressed, highlighting her frustration.
Understanding the Risks of Online Bill Pay
The incident raises important questions about the reliability of online bill payment systems. According to Kevin Brasler from Consumers’ Checkbook, consumers should not assume that electronic payments are always sent electronically. “Often mortgage lenders don’t have a big footprint in certain geographic areas; it may be that your bank is going to send a paper check to them,” Brasler explained.
To mitigate risks, Brasler recommends setting up direct payments with the mortgage company or the entity receiving the payments directly. “It’s probably better just to go ahead and set up with your mortgage company or whoever it is that you’re paying regularly,” he said, though he cautions to ensure that such arrangements do not incur additional fees.
In response to Truett’s situation, her bank has initiated an investigation into how the check was lost and subsequently cashed. The bank has assured her that she will not face penalties due to this incident. Despite this assurance, Truett plans to discontinue the bank’s check mailing service. “Electronic would have been so much better. And I will cancel bill pay and bring it to them monthly once this is fixed,” she stated.
Advice for Consumers on Bill Payments
Truett’s experience serves as a cautionary tale for consumers who utilize online bill pay services. It is advisable to verify how important payments are processed and whether they are sent electronically or via traditional mail. Taking proactive measures, such as confirming payment methods with service providers, can help prevent similar issues from arising.
As consumers navigate the complexities of modern banking and payment systems, staying informed and vigilant is essential. The right approach can save time, money, and stress in managing financial obligations.
