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Paying... to pay your bills
Online shopping made easy?
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TEXT OF INTERVIEW
BILL RADKE: If you pay your bills on time, you are to be congratulated -- and possibly charged a fee. That's right, some lenders, telecom companies
and other providers will charge you a charge for paying what they charge you. Let's get an explanation from Los Angeles Times consumer columnist David Lazarus. Good morning, David.
DAVID LAZARUS: Good morning.
RADKE: Please explain.
LAZARUS: It's called pay-to-pay. It's remarkable.
RADKE: Pay-to-pay?
LAZARUS: The notion that you're being charged a fee to give them money is simply astounding. Let's look at some examples of this. Let's say you're running a little late with your mortgage payment or whatever, if you are to go Chase, Wells Fargo, Bank of America and you want to use their automated phone system -- no human beings within sight -- $15.
RADKE: And this is not a late fee, this is just a charge for using their automated systems?
LAZARUS: Just a charge to pay your bill using automation. And when you talk to consumer advocates about what is the real cost of an automated transaction, a few cents, if that.
RADKE: Yeah, isn't that the point, part of the point of automation?
LAZARUS: To save money, exactly. And yet these guys are charging $15. I asked Chase, "How can you charge that much for an automated transaction?" They said, "Well, that's how much we charge." And you look at some of the other charges out there. For instance, this week Verizon Communications is introducing a new $3.50 charge if you pay your bill online, automated phone system, or to a service rep without using their recurring, automatic bill paying system.
RADKE: So that's unless you have it taken straight from your bank account, which some people don't like to do. I mean it feels a little insecure, right?
LAZARUS: Some people want to be in the driver's seat. It's that simple. And it's your money. You should be able to make that choice. Moreover, let's remember, you're giving your money to a company. That's what you're doing. They're in the business of receiving your money for a service provided. So the notion that a Verizon, for example, will tack on another $3.50 just because you're not paying them in the manner they would like to be paid -- it's extraordinary.
RADKE: So the only conclusion is pay attention and shop for that?
LAZARUS: Pay attention. Be sharp. And also complain because pay-to-pay is just ridiculous.
RADKE: We need more complaining, says Los Angeles Times consumer columnist David Lazarus.
LAZARUS: Thanks and pay up.
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Like Scott in his previous comment, I also contacted Verizon to ask about this $3.50 fee. The representative knew nothing about it. The Marketplace story should have clarified the details (stated by Scott above) regarding this fee. I would have cancelled my service if the story were totally accurate.
Glad to hear this story on Marketplace. You've only touched on the tip of the JP Morgan Chase iceberg though. If you have a mortgage with Chase, and you want to make your payment online, you must register with them for an account. There's a EULA for the account terms and conditions. Within the fine print of the EULA it indicates that you consent to giving up all the rights you received from recent congressional legislation not to have your personal information used for marketing purposes. This is an astonishing abuse of authority on the part of Chase, and completely turns the advantages of internet payment on its head. Wait, though, it gets better. If you've gotten this far and you don't accept the terms of the EULA, and you click cancel, you may still have created an online account with Chase leaving the status of your rights completely up in the air. How would I know that I had an account? Well, perhaps the fact that I've received several subsequent emails from Chase to me as a "Chase Online (SM) Customer" to advise me of "Important changes to your online legal agreements". Just astonishing stuff!
I contacted Verizon directly twice this morning, neither representative knew what I was talking about. I then researched their site. The only mention of a $3.50 charge is for customers that either decide not to register for a "My Verizon" account or choose not sign into "My Verizon".
"Make a payment now without registering or signing in.
Please note that payments made
without signing in to My Verizon will be processed by a vendor who will charge a $3.50 service fee per payment. Avoid this fee by signing in or registering."
The fee is charged by the 3rd party vendor. I recognize that a 60 second story cannot go into this level of detail and this is in fact going on; however, the tone was a bit disingenuous in this particular case.
If any company requires you give them your direct link to your bank account, then they must be held responsible for ANY breach into your account. Congress MUST make them provide a comprehensive audit trail of every computer system they own that contains your bank account. What's next, making the customer pay a years projected bill in advance or else they'll charge you?
I suggest people complain to companies on a weekly basis and also to the FTC at https://www.ftccomplaintassistant.gov/
for unfair business practices.
This is a case for continued "naming and shaming" of the companies. Every single person charged by this outright scam must loudly complain to the company, the media and their local elected reps.
Raise hell, refuse to pay it; threaten to cancel or change your account. Hit 'em where they live, and usually one phone call will get them to waive your fee.
Does it work? Well, very recently we've seen consumer sentiment cause Frito Lay to change some packaging (too noisy) and the GAP to redesign its logo (too different), both based on Tweets, wall-writing, and web postings.
Is there a comprehensive site or listing of which banks or companies do this? Or is it still too new to expect such a thing. I would love a follow up story that ranked major banks, mortgage lenders, and businesses.
I agree - it is ridiculous. We talk all the time at work how many "disincentives" there are for "going green". This is just another one (kill a tree, send a check)
Thanks, Steven
Chase and Verizon aren't thinking big enough. My county used to charge a $45 "convenience" fee if you paid your property taxes online. (They've since reduced it to $3.00.) So far I've chosen to be "inconvenienced" and allow them to deal with paper checks.
And no, I don't think we need more complaining. We need to take our business elsewhere. Since accepting payment is such a problem for some companies, we should go bother someone else with our money.
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