Payments made using online bill pay were deducted from my account days or weeks before the check was cashed, or in one case where the check was never cashed and not credited back for ninety days. Do I have legal recourse for the timely return of the funds that are deducted when no payee cashes the check?
There are two bill pay models. One form of bill pay service issues checks drawn on the customer's account. In such services, the check doesn't get deducted from the customer's account unless it is received and cashed or deposited. This model is the most like paying bills yourself with your own checks, envelopes and stamps.
The other model, used by some banks, charges the customer's account and transfers the funds to the bank's or service provider's bank account on the day the payment is issued (or the day before), and payments are sent electronically or by check from the service provider's account. Your description suggests this is the model your bill pay service uses. The service typically has terms of service or a contract that you agreed to, and those terms will govern when you have a claim for a refund for an incompleted payment. You will have to check the terms of service for your bill pay provider for the answer to your inquiry.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
There are two bill pay models. One form of bill pay service issues checks drawn on the customer's account. In such services, the check doesn't get deducted from the customer's account unless it is received and cashed or 