| [Rant] US Bank processed my payment late So pissed at US Bank. I scheduled a payment via bank bill pay to be delivered to US Bank on 12/30/2011. My main bank provided proof that it was sent on 12/29 and delivered and processed on 12/30. US Bank posted it a year later on 1/3/2012. Seems to me like the servicing department let the payment processors go home early for the holiday.
I was paying early so there is no 30 day derogatory concern, but I may have to pay more 2011 taxes if this does not get corrected.
Dealing with correspondence department. Now I have to wait for my main bank to to generate a new statement, grrr... |
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 JahntassaWhat, I can have feathersPremium
join:2006-04-14
Conway, SC
kudos:4 | I'm curious why you would think the bank would post it same-day, especially at the end of the year. If you really needed it done in 2011, should've given it more lead-time.. |
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| said by Jahntassa:I'm curious why you would think the bank would post it same-day, especially at the end of the year. If you really needed it done in 2011, should've given it more lead-time..
My intention was to maximize the interest accrued and paid during the Calendar year. US Bank's site does not allow me to schedule future payments without paying a fee  to pay my bill.
I was mindful that the 31st fell on a Saturday, but in hindsight I should have paid on the 30th on the US Bank site or scheduled my bank to pay a day earlier and foregone a day's interest to avoid this hassle.
Payment processors are supposed to post payments the day they are received, IMO failure to do so is "abuse." |
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| reply to hoyleysox
"My intention was to maximize the interest accrued and paid during the Calendar year."
So PRECISELY how much money was at stake here, just so we all understand how much value was at hand for not paying say the previous week? |
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 DC DSLThere's a reason I'm Command.Premium
join:2000-07-30
Washington, DC
kudos:2
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| reply to hoyleysox
The vast majority of online billpay transactions go through Fiserv (formerly Checkfree). Unless your bank specifies otherwise, payments to recipients who can receive direct ACH that are submitted before 3 or 5PM Eastern on a regular business day are guaranteed next regular business day receipt. 12/30 was a Friday and the next business day would be 1/3 (since Monday 1/2 was a bank holiday). This was purely your screwup, not the bank's. You should have submitted the payment on 12/29 for receipt on 12/30 (the last business day of 2011).
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| said by DC DSL:The vast majority of online billpay transactions go through Fiserv (formerly Checkfree). Unless your bank specifies otherwise, payments to recipients who can receive direct ACH that are submitted before 3 or 5PM Eastern on a regular business day are guaranteed next regular business day receipt. 12/30 was a Friday and the next business day would be 1/3 (since Monday 1/2 was a bank holiday). This was purely your screwup, not the bank's. You should have submitted the payment on 12/29 for receipt on 12/30 (the last business day of 2011).
It was bank bill pay, not an ACH. My bank said they mailed a check. It should have been posted the day it was received. |
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| reply to Sukunai
said by Sukunai:"My intention was to maximize the interest accrued and paid during the Calendar year."
So PRECISELY how much money was at stake here, just so we all understand how much value was at hand for not paying say the previous week?
About $1,000 worth of interest, so a couple of hundred bucks in 2011 tax savings. |
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DC DSLThere's a reason I'm Command.Premium
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Washington, DC
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| reply to hoyleysox
said by hoyleysox:It was bank bill pay, not an ACH. My bank said they mailed a check. It should have been posted the day it was received.
All of the national and major regional banks' billpay services go through Fiserv (ACH) unless the payee is not set up for it (such as individuals and smaller businesses)...in which case a paper check is cut and mailed. All of the major bank lending operations (including Amex and Discover) receive billpay payments via ACH. You can easily tell if a payee is ACH or not by looking at the "payment will be received" date field that is automatically filled with the earliest date when you enter the amount. Even if it lets you edit it to an earlier date, it will use the earliest date the system specifies.
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"Dance like the photo isn't being tagged; love like you've never been unfriended; and tweet like nobody is following." |
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| said by DC DSL:said by hoyleysox:It was bank bill pay, not an ACH. My bank said they mailed a check. It should have been posted the day it was received.
All of the national and major regional banks' billpay services go through Fiserv (ACH) unless the payee is not set up for it (such as individuals and smaller businesses)...in which case a paper check is cut and mailed. All of the major bank lending operations (including Amex and Discover) receive billpay payments via ACH. You can easily tell if a payee is ACH or not by looking at the "payment will be received" date field that is automatically filled with the earliest date when you enter the amount. Even if it lets you edit it to an earlier date, it will use the earliest date the system specifies. I stand corrected then. I just double checked and it showed the payment will be sent electronically in 1 day.
Its messed up if payments scheduled to be paid on the due date are always posted late.
I should be okay with the IRS if I added that payment in because the funds left my account before the next year, but am worried about raising a red flag... |
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Zoder
join:2002-04-16
Miami, FL
1 edit | Won't you get a 1098 from the bank? You'll have to report what they submitted to the IRS if you don't want to raise any flags. |
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| I do not expect that payment in question to show up on the 1098.
Plan A:
US Bank says they may adjust my 1098 if I provide proof of the payment transaction and the statement. Have to wait for the staement...
plan B:
The red flag is a concern, but the IRS should consider my # accurate because the $ left my account in 2011. IMO the chances of me getting audited are low.
Surprised I haven't been able to come up with more google results describing similar scenarios, I would expect to hear of a lot of horror stories about people getting hit with late fees when they schedule a payment to be delivered on the late fee cutoff date.
I consider bankrate reputable:
However, if you actually get your payment to the bank by the last business day of the year or a weekday or two early, the extra interest will show up on the lender's official paperwork. And that means no curious tax examiner will question any difference between the amount you claim on your Schedule A and what your lender reported -- and copied to the IRS -- on the 1098 form.
If your year-end mortgage statement doesn't reflect the extra payment's interest, go ahead and deduct the correct amount on your tax return and attach a statement explaining why your number, not the lender's, is accurate.
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rody_44Premium
join:2004-02-20
Quakertown, PA | Your just shifting next years to this year. Far from hundreds. It would be the differnece in getting 300 next year or 300 this year. Not something most people would even play with, after all its the IRS. |
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 I AM
join:2010-04-11
Ephrata, PA
kudos:3
 ·Blue Ridge Cable
| reply to hoyleysox
Well. If they mailed it, it depends with the Bank actually received it. Banks usually have a cut off time until they roll over to the next BUSINESS day. If they received it later it will go to the next BUSINESS day and since Saturday is not a business day it wouldn't post until the 3rd since the 2nd was viewed as a Holiday by all banks. |
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| reply to rody_44
said by rody_44:Your just shifting next years to this year. Far from hundreds. It would be the differnece in getting 300 next year or 300 this year. Not something most people would even play with, after all its the IRS.
True. The discrepancy would stand up to an audit, but don't want to go through a hassle. Waiting for the statement to come out in the next couple of days. |
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| reply to hoyleysox
Yeah it would have been prudent to give US Bank more time, but according to the FTC I should be in the right.
The servicer must credit a payment to your loan account as of the day it is received. |
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 pnjunctionTeksavvy ExtremePremium
join:2008-01-24
Toronto, ON
kudos:1 | Received? My banks terms clearly state that payments made or scheduled on a certain day are processed that night and paid the following business day. If I wanted someone to receive a payment on a certain day I would have to perform the payment on (or schedule it for) the previous business day. |
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| said by pnjunction:Received? My banks terms clearly state that payments made or scheduled on a certain day are processed that night and paid the following business day. If I wanted someone to receive a payment on a certain day I would have to perform the payment on (or schedule it for) the previous business day.
The FTC link unequivocally states that loan payments should be posted the day that they are received, not the next day. I reviewed US Bank's FAQ and it is mum on this issue. |
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DC DSLThere's a reason I'm Command.Premium
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| As I said several days ago, the payment was processed correctly. Had you submitted it one day earlier, it would have posted on 12/30. Saturdays, Sundays and bank holidays are not considered business days by the vast majority of financial institutions. In your case, the next business day was indeed January 3rd. You goofed, not the banks.
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| said by DC DSL:As I said several days ago, the payment was processed correctly. Had you submitted it one day earlier, it would have posted on 12/30. Saturdays, Sundays and bank holidays are not considered business days by the vast majority of financial institutions. In your case, the next business day was indeed January 3rd. You goofed, not the banks.
Guess I am still struggling to reconcile what you and pnjunction assert is common practice and the FTC quote that I referenced in an above post. This dead horse doesn't get it.
Do you think my credit would have been hit if I had not made my payment earlier? |
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DC DSLThere's a reason I'm Command.Premium
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Washington, DC
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| said by hoyleysox:said by DC DSL:As I said several days ago, the payment was processed correctly. Had you submitted it one day earlier, it would have posted on 12/30. Saturdays, Sundays and bank holidays are not considered business days by the vast majority of financial institutions. In your case, the next business day was indeed January 3rd. You goofed, not the banks.
Guess I am still struggling to reconcile what you and pnjunction assert is common practice and the FTC quote that I referenced in an above post. This dead horse doesn't get it. Do you think my credit would have been hit if I had not made my payment earlier? What aren't you able to wrap your brain around? If a payee can receive payment via ACH, billpay uses that route. Unless a particular service specifies otherwise, if a payment is submitted to the sending bank before its cutoff time for next banking business day delivery, then the recipient will have it on the next business day. Weekends and holidays are NOT officially recognized as banking business days, even if the receiving entity happens to be open and accepting payments. Since 12/31 was a Saturday, 1/1 was a Sunday, and Monday 1/2 was a federal holiday, the next banking business day was Tuesday, 1/3. Had you submitted the payment before the next-day cutoff time on 12/29, it would have been part of 12/30's business day. For consumer and small business billpay, there is *NO* realtime or "same day" processing...the absolute earliest a recipient will have payment is the next banking day.
It is possible that if your recipient lets you initiate payments from *their* website that you could have had it processed with 12/30's business. However, that depends on the entity...some state that if you initiate it before a specified time, it will be posted for that date; others might make it the next banking day; some push it to the 2nd or even the 3rd banking day after.
If a payee cannot receive ACH payments, then a paper check must be mailed to them. Most billpays have a cutoff of 5-7 banking days before the due date you put in to allow for snail mail to get it there in time.
You have to read the terms and conditions carefully to make sure you understand what everyone's particular policies and any applicable fees are. And, you can't ignore notices mailed to you or emails alerting you to a change of account terms.
Whether you get dinged with a late payment mark depends entirely upon what that particular account agreement specifies. Banks are supposed to not consider a payment late if the due date falls on a weekend or holiday and it is received on the first business day after...but some dick around with that anyway unless they get challenged. It is illegal to penalize consumers for early payments or paying more than the minimum.
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