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EFT: Friend or Foe?

I'm a control freak (this is very different than being a neat freak, although both are members of the freak family). I have never signed up for EFT (electronic funds transfer) or automatic payments. I like to know who, what, where, when, and why my money is leaving my account.

However, I was pleasantly surprised to discover that my ex had our old car insurance set up on EFT for two years in my name, which actually built my credit (trade line history).

I was so inspired by this, and since I am still (always) building and looking for ways to improve my credit scores, I took a bold step and set my new car insurance up on EFT.

This turned out very badly. The results were a trainwreck that just kept going and I was left to pick up the pieces, and I'm working to make sure my credit has not been damaged by the incident.

I have cancelled EFT and do not plan to use it again. I thought EFT would be my friend, but it turned out to be my foe.

Anyone else have experiences good or bad?

Posted by E on May 14, 2007 4:07 PM |

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Comments (3)

MSMomsmoney:

I use EFT for almost ALL bill paying and saving. I absolutely LOVE it!

I set the date, and my bills are paid, and my money goes into my online savings account.

The only problem I had was when I stopped using EFT for my car payment--and started paying by check (to pay off the loan)....they kept reducing what I owed each month, instead of putting the extra money towards the principal. Once it was paid off though-no othe problems.

What happened with your EfT that turned out so bad?

I swear by them.

You know I think it may have been the particular company that is was set up through?

sf mom:

I have most of my accounts set up on EFT, not all, but most. (the others aren't set up mostly because I haven't got around to it.)

It works perfectly. I set it up to be paid on the date it's due, log it into Quicken, and wait for the day that it is to be deducted. It's very nice; and I don't miss any due dates or incur late fees.

Sorry you had a bad experience; overall, I've been pleased.
sf mom

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