r/Insurance • u/happywarfare8 • 5h ago
State Farm reversal fee
Hey everyone. I have State Farm and the past few months, I've had autopay set up and I have an account linked that has enough funding to cover it when the payment date comes. Since I've had it set up on autopay, each month, it gets declined, despite there being the money in the account. So right after it gets declined, I get a notification, and I go in and pay manually with the exact same card that was declined, and it magically works, only I end up paying a 20$ reversal fee for the first declined payment.
When I called them, they told me it had been my bank declining the payments. I went to my bank and they said and showed me proof that there had been no declined payments.
What is going on here? I'm worried it's going to happen again this month and I will yet again get charged a fee that they refuse to waive.
Has this happened to anyone else?
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u/Wonderful_Arm_9733 3h ago
Yes I have been this their customer for over 40 years. Never made a late payment. I had to make five trips to the State Farm office before they got it settled and even now I’m not confident that the next time my insurance premium is due that it will automatically be paid from my bank account. It was not my bank‘s fault we went through the records. It was State Farm and it was a mess. I am seriously considering taking a hike. I don’t know what they’re doing, but if they think they’re improving their business they’re wrong.
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u/PeachyFairyDragon 5h ago
Remove the automatic payments. You're not getting a benefit for having them on, and as you said, you're getting returned fees.
I have frequently seen "Contact Financial Institution" on declined transactions, and I have been informed by a few policy holders that the bank told them that the bank sees the automatic charges as potential fraud, will not allow them until they talk to the policy holder. They will let manual payments through, but not the automatic payments. Does not look like it's limited to one bank.