To what degree can an online bill pay program be held liable if they fall short of a stated guarantee to deliver funds on time?

Asked on September 23, 2014 under Business Law, Washington


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

If there is a specific written guaranty stating what a customer receives if the guaranty is breached (e.g. "your money back!"), then the terms of that written guaranty would control and you get whatever it says you are entitled to. If there is no specific compensation listed, you could recover your loss or "damage" due to the delay. For example: say you needed the funds by Wednesday to book a vacation at a discount. You didn't get the funds until Friday, so you now you had to pay more (you missed the discount)--say, for example, $400 more. In this case, you could potentially recover that $400--though if they did not pay voluntarily, you'd have to sue, which may or may not be worthwhile.

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