Conference 7.286::dcu

    Yipes. I'm glad you told us about this. My mortgage is with Fleet
    Mortgage Corp. also and I was going to have automatic payments made
    starting sometime this summer.
    
    I don't have any great ideas for you. But send the letter where they
    said at the least, it can't hurt. Perhaps a letter to each of the BOD
    members too? Tell them that this is a fundamental service and that if
    the computers aren't set up correctly they should take action to
    correct the situation.
    
    Just thought I'd put this hear in case the DCU actually gets to read
    this note they will see there is another member that will probably be
    in the same situation shortly.
    
    -Glenn-

    It would be interesting to find out if other mortgage companies
    have this problem as well.  If no other mortgage company does, you
    might find out why Fleet does.
    
    If Fleet represents the defacto "industry standard" (as they claim),
    then there should be a host of other horror stories from folk who can't
    use automatic payments from a DCU account to other mortgage companies.
    
    If no other (or very few) complaints come forth, you might try pressing
    Fleet Mortgage as well.  After all, if they receive your payment
    on, say, the third of the month via US Mail instead of the first
    of the month via direct deposit, they are losing the use of your
    money for about 24 days per year.  Considering the amount of money
    usually involved in a mortgage payment, this interest could mount
    up fairly quickly.  Plus, I would suspect that there is additional
    overhead in processing a mailed payment every month, so they could
    be losing out even more.
    
    Personally, I do not like the idea of giving anyone access to my
    bank account (but that's just my opinion... 8^).
    
    -- Russ

    My mortgage payment to Homeowners' Federal Savings (which is serviced
    by its subsidiary, Knutson Mortgage in Minneapolis) is taken straight
    from my NOW account at DCU.  I expected troubles, but haven't had any.

    My SO has had mortgage payments directly made to both 1st NH Bank and
    Colonial Mortgage Corp with no problems.

    I doubt the argument about getting the payment 3 days late will sway
    Fleet; they consider that late, and it's your problem, not theirs.  When
    I got a mortgage with Fleet 5 years ago, they made it very clear when we
    applied that payments were due on the 1st.  Late charges aren't applied
    until the 15th, but anything after the 1st is reported to the Credit
    Bureau (or so they claim).

    On the other hand, the point about mailed payments costing more is valid;
    that's why they encourage the electronic transfer.  Colonial requires it
    on all mortgages.

    Beverly

I have automatic payments from DCU to my mortgage with Commonwealth
Mortgage Company.  No problems.
                --tom

    re: .4
    
>   they consider that late, and it's your problem, not theirs.
    
    I beg to differ.  It's your problem _AND_ theirs -- whether or not
    they choose to _admit_ that is another issue.
    
    Sure, you may feel it on a credit report, but _they_ are the ones
    who are losing the _money_.  You could hold your mortgage payment
    for an extra 150+ days per year.  You may be out on the credit report,
    but _they_ are out FIVE MONTHS usage of your funds.  Money lenders
    generally don't like the concept of a 5 month interest-free loan!
    And let's not forget that this goes on for years.  Then, guess how
    many other people are holding out the same way...
    
    Yes, the credit report _might_ bite you.  But the lack of interest
    _does_ bite them!  It is in _their_ best interest, as well as your
    own, to get the problem resolved.
    
    -- Russ

    RE: -.1
    
    Have you considered that the "industry will clamp down" because of people
    like you? The grace period is there for people who are legitimately
    late in their payments every now and then. If most people did the scam
    you are doing you can be assured that they would close that hole ASAP
    which would mean that when some people are periodically strapped for
    money they no longer have the extra time to make the payment.
    
    How much interest can you make on a few thousand dollars in 14 days
    anyhow? Is it really worth risking them closing out the grace period
    for?
    
    -Glenn-

    Re:
    
>    People who pay their bills before they are absolutely due are just
>    throwing their own money away.
 
    My sentiments exactly. My policy with all bills is to pay them at
    the last moment. No point in paying early if there is no penalty.
    Mortgage payment goes in on the 10th of the month, utility bills
    get paid when I receive the:
    
    	"You are delinquent on xxx $, unless you pay by dd-mmm your
    	 service will be disconnected"
    
    I then pay the amount they ask for by that date. This has never
    caused me any problems. I usually get about 3 months free use of
    the money that way. Once or twice I've even missed these dates.
    I've found that your service doesn't get disconnected, you just
    get another letter that is a bit more strongly worded. I've never
    seen what happens after that because it would cost me money if
    they disconnected my service.
    
    Credit card bills get paid every month on the nose, that costs real
    money if you are a day late.
    
    Now back to DCU, the topic of this notesfile. I'd like to have my
    mortgage payment deducted automatically. But I can't seem to find
    a way to get it deducted on the 14th of the month. The mortgage
    company insists that it gets deducted on the 3rd (or it may have
    been the 1st). They have sent me several form letters letting me
    know that I can have my mortgage deducted automatically. Once
    I called the mortgage company and asked if I could set the deduction
    date, they said no, so I said fine I'll continue to use mail and
    send it in on the 10th each month. Does anybody know any way
    to get an auto transfer to another account (mortgage account) from
    DCU where the DCU account holder sets the date? If so I'd use it.
    
    Dave

    
    Everyone:
    
    Please try to stick to the subject of the base note. 
    
    I already have asked few people to remove their replies, due to
    the fact that those replies had nothing to do with the base note.
    
    Your moderator,
    NJS

    re: .12 wrt .9
    
    The point I was attempting to make is as follows:
    
    	1. Unless other mortgage companies are having this problem with
    	   DCU, it may not be DCU's problem.
    
    	2. If Fleet says "it's not our problem", they are either being
    	   uncooperative or they're ignoring facts, because they _are_
    	   losing money by not facilitating the automatic transfer
    	   (apparently justification of this point cannot be discussed
    	   in this conference).
    
    -- Russ

    
    I don't think Fleet said "it's not our problem" in so many words.  What
    they did say was "we won't charge you, but we will hit your credit rating".
    On the other hand, they sold the loan to a Texas company within a few 
    months, so it never got tested.
    
    Beverly