Careful with giving anyone access to auto debits from your bank account! Here’s just one horrific example of the problems you can potentially create for yourself: A Florida insurance company has some massive computer glitches. It’s system debited thousands of customers up to 70 times for their monthly premiums. Yes, instead of one charge for your premiums, the system kept debiting the accounts over and over again.

If you’re like most of us, at some point, you’ll be out of money, and then the NSF charges start to hit you and overdraw your account. You’re right in thinking none of that is your fault – but all of it is your problem. It will take the insurance company months to straighten it out. Then you’ll need a letter from them that it’s their fault.

Then you’ll need to fight with your bank to get reimbursed for all the NSF charges and hope they’ll reverse all the extra debits or that the insurance company will get around to it. In the time this can and will take, you’re out the money! If the auto payment is from a credit card, you’re not out anything. You have 60-days to make the call and to dispute the extra items. They’ll come off your statement and you’re not out the money.