Automatic Direct Debit - Who Benefits?

Like everyone else in McNaughten Village, I received this notice in an email from our property manager, PMI.  They claim that the U.S. Mail is experiencing slow service, which may cause your condo fee payment to be late.  PMI suggests that all residents set up automatic online payments, which allows PMI to withdrawn the condo fee from your bank account without any intervention or approval from you, the owner of the account.  What could be more convenient?

This is convenient for PMI.  Not so much for the resident.  Once a vendor takes money from your account with your permission, it's almost impossible to get it back.  Setting this up for an automatic deduction just adds to the risk.  What if, for instance, the vendor takes too much?  You, the account holder, are on the hook for that money.  What if there isn't enough money in the account?  Bounced check fees apply from both the bank and the vendor, and those fees will be automatically deducted from your account without your permission.

The safest way to pay your condo fees is by a paper check, mailed from the U.S. Post Office.  Make your payment well in advance, giving it fifteen business days to arrive at PMI and be processed.  You can easily keep track of your payment via the Internet, as virtually every bank and credit union has a web site that allows you to do this.

Next time you're at the Post Office, ask them if their distribution centers are experiencing significant delays.

Thank you for reading.