Are you giving money away? If the answer is yes, please send
it to Capt. Fred in care of the Huron Daily Tribune. If your
answer is no, how sure are you about that answer? Unless you
are absolutely positive, you better read this column.
You will be surprised to learn you may be spending your hard
earned dollars by duplicate payment of bills and charges not
even yours. Because many major companies send such confusing
statements, many of us pay more than we owe. If we do, does
the billing company ever give it back or credit our account?
Perhaps they should send us a thank you note when we overpay
or pay in advance.
My
reference is not to an accidental overcharge, even big companies
can and do make an occasional data error. What
I object to
is the deliberate, constant changing of billing formats
and the confusing presentation of billing amounts. It seems
obvious
there is an assumption we all just automatically pay our
bills by looking at the bottom line. In fact, many of us
actually
do “auto” pay by way of “ach” withdrawals
from our accounts, believing it’s an efficient way
to never miss a payment.
We
have set up auto pay for a number of bills that arrive each
month, utilities, fuel bills, insurance and medical
bills.
It is very convenient for us because we travel so frequently
and do not wish to miss a payment (especially with the “stiff” penalties
that can be imposed). Most companies that agree to accept “ach” payments
still send a billing statement showing the amount owed and
the date an automatic payment will be withdrawn. Sometimes
the statements get delayed, due to forwarded mail or the gremlins
in the computers, and withdrawals are made without our knowing
what the payment amount was. When this happens, unless we stick
extra money in our accounts, we are overdrawn and that means
paying a fee for insufficient funds (another “stiff” penalty).
So, even though the auto pay is very convenient, you can lose
control of your payments and your bank account very easily
unless you stay aware of each and every one of them. I suggest
all statements you receive be reviewed each month as soon as
they arrive. Besides knowing when the payment is due, you may
be surprised by what you are being billed for that seems unrelated
to the service you are paying for.
One
of my favorites is the phone bill. In the list of charges,
I found residential line charge and two
federal
surcharges,
universal service fee, subscriber line charge, followed
by a total of surcharges and other fees. The next
category of
charges noted government fees and taxes, federal
excise tax, two state taxes and local tax. As I reviewed
my
bill, I wondered
what difference there was between “surcharges and other
fees” and “government fees and taxes.”
As
I continued to peruse my bill, I saw a $17 fee for “information
and connection.” When I later questioned this amount
I learned it was added by an “outside company.” When
I explained I had never used that company, I was simply told
the charge would be removed. I wondered who would have received
that money and why the charge landed on my bill in the first
place. If I had not looked closely at my bill, the bottom line “amount
due” would have been paid.
Another
favorite statement of mine, which fortunately only comes
once a year, is for my Sirius Satellite
Radio system
in my car. Usually two or three billings arrive — all
different — and then someone calls to inquire
if you got your bill. The latest one I received
(after I
had paid
an earlier one) had two columns.
The first was labeled:
ACCOUNT SUMMARY
Previous Balance $203.72
Sirius Service - 76.96
Radio Service fees 8.32
Current Charges
Subtotal - 68.64
Invoice fee 2.00
Total Amount Due $137.08
The second column was titled:
SERVICE DETAIL
Sirius Select 1 year $77.00
U.S. Music Royalty Fee 8.32
Previous Subscription Credit - 153.96
Total Current Charges $ - 68.64
My previous balance less current charge credit plus the invoice
fee totaled the amount due of $ 137.08, but what happened to
my $ 153.96 previous credit? None of the figures displayed
on the above statement noted the payment I had already made
on my bill.
I
did find a “Listener Care” phone number on the
statement and when I made the call, can you believe it, I reached
an operator in Southeast Asia. I asked for someone in accounting
and the operator told me she was in accounting and asked how
she could help me. I began to question the odd variables on
my statement and when she found a copy of my statement in her “system” her
numbers were
different than
mine. After
I spent 15
minutes during
which she
kept insisting
I was wrong
about what
I was seeing
on the printed
page,
she
grew
weary
of me.
She
told me, “I
will have
someone in accounting
contact
you in the
next five
to 10 (or maybe
a 100) business
days.”
I
believe that was
what I
asked for
when she
answered
my call.
Note:
I could
not make this
up — it
really
went just
as I
explained.
It
truly is almost
impossible
to
talk
to someone
on
this
side of
the world
when
you call
many
companies – “The
world is flat.” I have discovered something of value,
however, after my recent encounter with Sirius – why
their
stock
value
goes
up one
day and
plunges
the next.
The
last statement
I will
tell
you
about came
from
my
Florida electric
co-op.
I have
paid
a flat
fee
of
$11 a month
as
a “vacation
rate” for
years.
As
I reviewed
the
bill,
I noted
the
$11
charge
had
jumped
to
$24,
and
when
I
inquired
I was
told
the
increase
was
necessary
to
reduce
the
burden
on
the
year-round
customers.
And
the
list
goes
on,
just
today’s mail brought a message
about a special “tort” fee on my auto insurance
and a very IMPORTANT notice from my BlueCross insurance company
about a NEW MICHIGAN LAW that allows them to “assess” my
bill an additional 1.35 percent to – get this — “comply
with
the
objective
to
fund
this
tax.”
I
could relate
the new
charges appearing
on the
cable bill
such as “Convenience fee – agent” leading
the long
list. Medical
bills arrive
that show
Medicare paid
only a
portion of
the bill
and a
balance is
due, even
though my
secondary insurance
was billed
and would
pay. How
many people
pay that
balance due,
believing they
owe it?
As I see it, why not pay yourself this month when the bills
arrive by reviewing your statements and NOT paying charges
you do not owe.