Life insurance question.

[Fish along]

Several months ago I closed out on a small life insurance policy,that I found is located in Texas. I noticed later that approximately $10 per month was coming out of my account,from this company.So I asked the bank to stop payment on this account and they did for a $12 fee,which is good for 3 months,then if they haven't stopped sending me this bill,then I can do it again for another fee of $12.

So I called them in Texas today and they said to disregard the bill,and they said nothing could be done about the bill being sent out. So what do I do? I'm screwed if I do and screwed if I don't. Thanks for any replies.

[EZM]

That's strange - usually a stop payment - which is essentially removing the authorization of this debit from your account should be a one time thing.

Maybe PM Dean, he may know as he has industry experience with this stuff.

I have accounts in the US but do not recall this ever being an issue for me - stopped payment, and that was it. I don't even remember having to pay to have that done either.

Bottom line is you no longer authorize that payment coming out of your bank.

[Fish along]

That's strange - usually a stop payment - which is essentially removing the authorization of this debit from your account should be a one time thing.

Maybe PM Dean, he may know as he has industry experience with this stuff.

I have accounts in the US but do not recall this ever being an issue for me - stopped payment, and that was it. I don't even remember having to pay to have that done either.

Bottom line is you no longer authorize that payment coming out of your bank.

Ok I'll do that thanks

[MyAlberta]

Wouldn’t have that problem if you switched banks.

[Fish along]

Wouldn’t have that problem if you switched banks.

Im with the Servus credit Union, and you dont think this is a standard fee in all banks?

[Dean2]

The stop payment fee is standard, in fact most banks charge 12.50 if you do it online and 25 if you do it with the teller. The 3 month limit I find odd as that does not meet the agreed payments regs between banks. Once an automatic debit is stopped it should be stopped forever. Cheques, a stop payment should be good for 6 months not 3, as after that the cheque is stale dated. I would talk to the branch manager and have him escalate to Credit Union Central who does their payments clearing, their service doesn't match regulations. Worse comes to worse, if the Credit Union won't do that properly for you, just close this account and open another one at the same place. Only issue is, if you have other automatic debits you will have to contact those companies to get them switched to the new account. Credit Union should have an automatic process to do that and notify the companies when you open a new account but they can be a little behind the tech at the banks.

[Fish along]

The stop payment fee is standard, in fact most banks charge 12.50 if you do it online and 25 if you do it with the teller. The 3 month limit I find odd as that does not meet the agreed payments regs between banks. Once an automatic debit is stopped it should be stopped forever. Cheques, a stop payment should be good for 6 months not 3, as after that the cheque is stale dated. I would talk to the branch manager and have him escalate to Credit Union Central who does their payments clearing, their service doesn't match regulations. Worse comes to worse, if the Credit Union won't do that properly for you, just close this account and open another one at the same place. Only issue is, if you have other automatic debits you will have to contact those companies to get them switched to the new account. Credit Union should have an automatic process to do that and notify the companies when you open a new account but they can be a little behind the tech at the banks.
Thanks for replying I appreciate it very much, hopefully i can get this resolved without being reported to a credit agency.