Can a company increase the amount of an automatic monthly withdrawal without your permission or any notice?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a company increase the amount of an automatic monthly withdrawal without your permission or any notice?
I bought health insurance and sent a check for $157 for my premium, but they took a direct deposit of $159 instead. Then I get a letter telling me that my premium jumped 50% higher because of prior chiropractic appointments and the use of ammoxcocillan for clearing acne. Today I see in my bank account they took out $121.90. That’s not half of my previous premium. Can they legally take money from my account without me knowing exactly what it was. I could understand if it was the same amount, but its clearly not. And if I write them a check, shouldn’t they accept the amount, and not take extra?
Asked on October 6, 2010 under Business Law, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
You need to look at your contract with the health insurer. Yes, you signed a contract and the terms of the contract are spelled out in the document. What I am guessing is that they have the ability to take more should their costs go up in insuring you. There is probably some language in the contract about this. Or maybe not. If you contracted for set premiums that do not fluctuate then you need to clear this up as well. Read the documents carefully then call the broker with whom you placed the policy for clarification. If you are not satisfied then I would contact the state Department of Insurance and speak with someone about filing a complaint. Complaints are taken seriously and you will indeed get some inquiry in to the matter. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.