Can a company change its auto-deduction policy without telling you?

This has caused my checking to be overdrawn and they say that there is nothing that they can do about it. My car insurer changed its policy so that if a renewal is within 10 days of the date of autopayment; it takes it out early. This policy was changed on the 13th of this month; I had a “double” payment taken out on the 23rd. I was never made aware that this was going to happen.I have only recently returned to work from being unemployed (taking a pay cut doing so). I don’t have the extra to cover this payment. I will be getting overdraft fees because of this. Is there anything that I can do?

Asked on October 24, 2014 under Business Law, Michigan

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes you can complain to the insurance company supervisor that they cannot double bill and you were not notified of a new policy in payments.  Further, file a fraud claim with your state's insurance department.  When you speak with your insurance company, tell the company this is a cause for breach on its part and you will cancel if the company doesn't fix this problem. Contact your bank and inform it you did not authorize the second payment. 

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes you can complain to the insurance company supervisor that they cannot double bill and you were not notified of a new policy in payments.  Further, file a fraud claim with your state's insurance department.  When you speak with your insurance company, tell the company this is a cause for breach on its part and you will cancel if the company doesn't fix this problem. Contact your bank and inform it you did not authorize the second payment. 


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