Issue with Financial Planner--looking for thoughts/input

[MillauFr]

paper checks-a neighbor got a call from her credit union questioning a check presented by a local company. did'nt seem norm for her account's habits. sure enough it was fraudulent. she ended up being part of a local sheme wherein theives would drive in neighborhoods before mail pickup and grab outgoing mail looking for checks to wash and recreate on printers

Exactly. This is why paying your bills online through automatic draft is far more secure than mailing checks. Also writing checks in public places is very risky. A thief just needs to take a picture of your routing / account number and has everything they need to drain your accounts.

 

[tvguy]

No not everyone does, and this article doesn’t even touch on overdraft due to fraud. It’s all about the fees banks can charge. Personal checks are also not secure either, you are literally handing someone your bank account and routing number. They can then go and use those numbers to pay numerous things with it. In the case of my sister, someone went online and used her account numbers and paid off their student loan balance to the tune of $15k. She had to fight for a few months to get the money returned to her bank account. Online bill pay is the way to go since checks get written from a clearing house and have no link to your banking information.

https://www.consumerreports.org/ban...e-before-signing-up-for-overdraft-protection/

No not everyone does, and this article doesn’t even touch on overdraft due to fraud. It’s all about the fees banks can charge. Personal checks are also not secure either, you are literally handing someone your bank account and routing number. They can then go and use those numbers to pay numerous things with it. In the case of my sister, someone went online and used her account numbers and paid off their student loan balance to the tune of $15k. She had to fight for a few months to get the money returned to her bank account. Online bill pay is the way to go since checks get written from a clearing house and have no link to your banking information.

https://www.consumerreports.org/ban...e-before-signing-up-for-overdraft-protection/

Sorry, I shouldn't generalize, I should have said I couldn't find any financial expert who avoid overdraft protection.
Wonder how you prove you made a payment through online banking since nothing links those payments to you?

 

[princesscinderella]

Sorry, I shouldn't generalize, I should have said I couldn't find any financial expert who avoid overdraft protection.
Wonder how you prove you made a payment through online banking since nothing links those payments to you?

It’s actually easier to prove you made a payment through online banking than mailing a check as the transaction is registered through your online bill pay, they know exactly when you submitted the payment request and when it should have arrived. If there is an issue you can contact the bank through the individual transaction inquiring about it if the intended recipient doesn’t receive it. If there’s fees associated with the payment not being received they will request the fees be waived since technically it should have been paid on time.

 

[princesscinderella]

we've experienced/known of issues with both paper checks and overdraft protection pitfalls-

overdraft protection-oldest's wallett was stolen and although recovered in less than 30 minutes the debit card info had already been transmitted to an associate of the theif. in less than 30 minutes a number of charges had posted in increasing amounts such that it started going into overdraft first to one account (that had next to nothing in it) THEN into all the other associated bank accounts. i immediatly transferred all the funds remaining into non associated accounts. lesson learned-if you want overdraft protection MAKE SURE it is limited to just one associated account with a minimal balance (bank did cover all the charges as fraud due to debit card w/mastercard fraud protection).

paper checks-a neighbor got a call from her credit union questioning a check presented by a local company. did'nt seem norm for her account's habits. sure enough it was fraudulent. she ended up being part of a local sheme wherein theives would drive in neighborhoods before mail pickup and grab outgoing mail looking for checks to wash and recreate on printers. i don't put any checks in the mailbox, i drop them off at the usps. i don't use checks much at all anymore-unless a vendor has an upcharge for using it i have a single credit card i use for payments, purchases. i monitor it on a regular basis. we have another card all subscriptions/streaming are paid with so it's one stop monitoring for us on that.

It’s so sad that we have to try to be one step ahead of thieves and fraudsters, we Iive in south Florida where fraud is rampant unfortunately.

 

[JBRB828]

I started online banking 4 years ago because we had fraud on our checking account. The day our SS went into our account was the day they withdrew the whole amount. Long story short, I used to write checks and one got "lost" maybe, the company never received it. I put a stop on it, too. I still feel it was taken and they used our account number. Thank goodness, everyday or every other day I would call for my balance. I immediately I called the bank, spoke with the fraud dept. and told to go to nearest bank. There I got the print out of the check, it had the name of a woman and the whole SS amount, but, the signature was so far off from mine. The memo said college. Changed all our account numbers too. About 3 weeks after all this went down, I got a call from the bank that someone was trying to get more money from our old account. We also went to the police to report it. Eventually, we did get our money back.

So, bank rep said we should do online banking, so we did and I love it now..... I check it everyday! I have the bank pay whatever checks I would have written out and send.

We don't use a FP, hubby checks it daily and taught me how to go into all the accounts.

 

[Mackenzie Click-Mickelson]

My aunt resisted online banking until she remodeled her kitchen in the early days of the pandemic and was defrauded out of money with a contractor who took her check and altered it which then was withdrawn from her account for more than it should have. The bank probably should have looked closer at the check but there was a long delay in her even finding out because she relied on paper statements. After that incident my mom set her up on mobile banking...well after they closed the account and got a new one.

Mobile/online banking really just makes it easier to catch things faster, it is convenient to do moving around of money. If you're still into writing actual checks you can do so but with mobile/online banking you can see changes quickly

 

[QueenIsabella]

I probably should work on doing online banking (might help if I do upgrade my phone--I could check things on the fly).

I have money anxiety on my best day, and I'm concerned about a company being able to take money out of my checking account automatically. I worry that I'll forget about a payment due, since there would be no "paper". Or that the electric company, say, would take out money when I wasn't expecting it. This might be irrational, but there you have it.

I did have an incident last year, where three mailed, paper checks didn't arrive at their destinations. I was notified by the credit card company that they didn't receive my payment. This was 100% a post office problem, nothing to do with banks or fraud, but I had to stop payment on the three checks and pay the bills again (maybe a second check to each? I don't remember now). I was pretty peeved at the post office.

I probably have to update my thinking, and get over my (irrational) fear of mobile banking. I need to get through this immediate problem first.

P.S. The phrase "phenomenal cosmic power" actually comes from the Genie in Aladdin, followed by "itty bitty living space!" Gotta love Robin Williams!

 

[tvguy]

Mobile/online banking really just makes it easier to catch things faster, it is convenient to do moving around of money. If you're still into writing actual checks you can do so but with mobile/online banking you can see changes quickly

I do online banking but I do nothing like that on my phone because of security concerns. My cousin did everything on his phone and his phone got hacked last year and I'm not sure if he has gotten it all straightened out yet.
The hacker I guess was one step ahead of him and did things when he tried to fix it, that made HIM out to be the hacker and the hacker to be the legitimate account owner. The High Tech crimes task force in his city even questioned WHO the real hacker was. What a mess.

 

[Mackenzie Click-Mickelson]

I do online banking but I do nothing like that on my phone because of security concerns. My cousin did everything on his phone and his phone got hacked last year and I'm not sure if he has gotten it all straightened out yet.
The hacker I guess was one step ahead of him and did things when he tried to fix it, that made HIM out to be the hacker and the hacker to be the legitimate account owner. The High Tech crimes task force in his city even questioned WHO the real hacker was. What a mess.

That's great...then don't install your banking app on your phone

 

[princesscinderella]

I probably should work on doing online banking (might help if I do upgrade my phone--I could check things on the fly).

I have money anxiety on my best day, and I'm concerned about a company being able to take money out of my checking account automatically. I worry that I'll forget about a payment due, since there would be no "paper". Or that the electric company, say, would take out money when I wasn't expecting it. This might be irrational, but there you have it.

I did have an incident last year, where three mailed, paper checks didn't arrive at their destinations. I was notified by the credit card company that they didn't receive my payment. This was 100% a post office problem, nothing to do with banks or fraud, but I had to stop payment on the three checks and pay the bills again (maybe a second check to each? I don't remember now). I was pretty peeved at the post office.

I probably have to update my thinking, and get over my (irrational) fear of mobile banking. I need to get through this immediate problem first.

P.S. The phrase "phenomenal cosmic power" actually comes from the Genie in Aladdin, followed by "itty bitty living space!" Gotta love Robin Williams!

I too don’t like to give out my account for auto drafts, there’s a few that have begrudgingly set up just because there’s really not another option. There’s a much better paper trail with online banking.

I do online banking but I do nothing like that on my phone because of security concerns. My cousin did everything on his phone and his phone got hacked last year and I'm not sure if he has gotten it all straightened out yet.
The hacker I guess was one step ahead of him and did things when he tried to fix it, that made HIM out to be the hacker and the hacker to be the legitimate account owner. The High Tech crimes task force in his city even questioned WHO the real hacker was. What a mess.

The key to online banking on your phone is to never have the login and password saved and that it never remembers it as a trusted device. If your phone is stolen and hacked if it’s set to login automatically the thief can have a field day.

 

[_19disnA]

I would only do online banking at home on your computer. Nothing is ever that time sensitive that you can't wait until the next time you are home to check something. Phones can get lost/stolen when out in public so I would never do banking transactions that way. Online banking does NOT mean you can't still write checks. You can use the online feature to simply check account balances or see which checks have cleared. You get to choose the level of involvement.

 

[barkley]

I did have an incident last year, where three mailed, paper checks didn't arrive at their destinations. I was notified by the credit card company that they didn't receive my payment. This was 100% a post office problem, nothing to do with banks or fraud, but I had to stop payment on the three checks and pay the bills again (maybe a second check to each? I don't remember now). I was pretty peeved at the post office.

credit cards i pay by calling and making a payment by phone from my checking account. years ago there was a fee for doing so but when it became free of charge it became so much more convenient. often by the time i've hung up there's already a confirmaion email on my laptop that the payment has been received. i have folders set up on my emal for any vendor i pay by electronicaly or by phone so that when the confirming email comes in i just 'file' them away.

 

[tvguy]

It’s actually easier to prove you made a payment through online banking than mailing a check as the transaction is registered through your online bill pay, they know exactly when you submitted the payment request and when it should have arrived. If there is an issue you can contact the bank through the individual transaction inquiring about it if the intended recipient doesn’t receive it. If there’s fees associated with the payment not being received they will request the fees be waived since technically it should have been paid on time.

A friend had an issue in court and the Judge wasn't convinced that the online payment records were correct. So as they say, your mileage may vary.

 

[amylevan]

I probably should work on doing online banking (might help if I do upgrade my phone--I could check things on the fly).

I have money anxiety on my best day, and I'm concerned about a company being able to take money out of my checking account automatically. I worry that I'll forget about a payment due, since there would be no "paper". Or that the electric company, say, would take out money when I wasn't expecting it. This might be irrational, but there you have it.

FWIW, you can mobile bank while still using paper. I still get paper bills in the mail, which I know a lot of people don’t do, and then when I pay bills, I go into my bank and pay the bill from my account manually - just like I did years ago when I would send checks though the mail. The only difference is that the bank sends the money electronically. I still choose when and how much.

 

[wabbott]

FWIW, you can mobile bank while still using paper. I still get paper bills in the mail, which I know a lot of people don’t do, and then when I pay bills, I go into my bank and pay the bill from my account manually - just like I did years ago when I would send checks though the mail. The only difference is that the bank sends the money electronically. I still choose when and how much.

Even though I have most accounts drafted (water, electric, cable, etc) I also choose to have them send me paper bills. Some of my old OCD habits die hard, LOL. If you do any amount of extended travel at all (2-6 weeks) drafts are just about have to. So far, we've not had any problems, knock on wood.

 

[georgina]

Even though I have most accounts drafted (water, electric, cable, etc) I also choose to have them send me paper bills. Some of my old OCD habits die hard, LOL. If you do any amount of extended travel at all (2-6 weeks) drafts are just about have to. So far, we've not had any problems, knock on wood.

Not me, I don't want paper bills. I WISH I could get medicare to stop sending paper bills to DH. Last month the bill was 2 weeks late and I was concerned since it has his full medicare number on it! I pay it online anyway. I have all my utilities - gas, water, sewer, electric, plus insurance, property tax, car payment, HOA fees, DH's medigap supplement monthly fee, and most credit cards paid automatically from my checking. I get email notices about them all and save them in files in my gmail account.

 

[sk!mom]

I will assume it was an error and not something more nefarious.

But I would be livid at the dismissive response from someone other than the planner and the lack of a sincere apology.

I get weird about things, but that would the the hill I would chose to die on and would be looking for someone else immediately.

Agree that the response was inadequate, and while I would ask all the questions in the follow up call, I would likely be making changes regardless.

This. OP really needs to get comfortable with checking their accounts online. It's easy to do frequently.

Absolutely, it’s interesting that OP and her DH are so proud of his extensive spreadsheet and fearful of online yet so lackadaisical about keeping up. A stack of paper statements that he hasn’t looked through and he’s trying to find the applicable statements! What’s the point of all that paper if no one is keepin up with it? And I understand being busy.

Online banking and accounts make keeping up so easy. Quick looks and you know that things are good. DH is an accountant who also likes extensive records, spreadsheets, etc… we sit down once a month (mostly so I’ll keep up) to set Bill pay transactions and dates. DH doesn’t like them to be auto as he wants to be sure that we are actively watching and keeping up. Then he updates his Quicken records every…

Just read this situation to DH, his immediate thought is why aren’t you doing a monthly bank reconciliation? What is the point of paper statements and a check register if you aren’t reconciling?

I guess I just can’t wrap my brain around the dichotomy of “I don’t trust the 21st century enough to go electronic so I still do paper everything but I trust a planner enough to never/rarely look at the paper.”

 

[DIS_MERI]

Another significant concern is the distinct possibility that, if they can't get your deposits right, that they aren't handling the tax withholding correctly either....

 

[QueenIsabella]

I agree that my DH is in over his head with the paper statements. I will bring that up with him separately--aside from him not looking through them, there are just stacks of crap by his chair in the living room--drives me nuts!

I look at the checking account only (except for my IRA, which is just kind of hanging out--I get quarterly statements, review the, hand them over to DH for the spreadsheet). I've always hated reconciling the checkbook, which is kind of weird because I'm a math nerd. But, I also have money anxiety, which I think wins out (If I don't look...). I do a "macro" check every month, which failed the last few months because we just had so much flowing in and out--much more than would be typical for us (vacations, tuitions, the odd funeral...).

On the good side, I'm not, generally, worried about the withholding of taxes. We've worked with this financial planner for many years, and the same accountants for ~25 years--never had a tax problem. I AM concerned about what taxes were (or weren't) taken out for this two incorrect deposits/withdrawals.

Dh does have online access o our investments--he's going to give me the login/password, and I'll be taking a look at that later today. And I'll be getting a new phone this week, which will allow me to keep a better eye on the checking account.

 

[georgina]

All good steps! My money anxiety goes the other way - I check too often!