I talked directly to the insurance company today, and they explained that they do not allow monthly payments without auto debit because it is too easy for the coverage to lapse. I do understand that logic, but still think it would have been fine for me personally. I decided to pay quarterly so that I will not have to sign the auto-withdrawal form. It is more than I had budgeted this month, but I should be able to make it up in March's budget. Thanks to YNAB I know where all my money is all of the time. 
Legal or not, I caved
February 13th, 2008 at 06:11 pm
February 13th, 2008 at 08:33 pm 1202934782
February 13th, 2008 at 09:28 pm 1202938105
February 14th, 2008 at 12:26 am 1202948767
Having worked in banking I have learned that once you sign access to your bank account over to strangers they have carte blanche to take as much as they want whenever they want. Is it legal? No, probably not, but if you run into a company with shady practices and they want the money they can take it because you gave them your account number and routing number . Once it is started it is EXTREMELY difficult to get it stopped on your end. I have seen the nightmares and never want it to happen to me. For instance, a lady who allowed a company she saw on an infomercial to debit her checking account, and they took triple what she thought the price was supposed to be, and then kept charging her every month! Ugly situation.
I DO, however, use auto bill pay through my bank where I tell the bank to send out payments every week/month/etc to different places. This is completely in my control and if I choose not to send payment then it does not go out because I have not given out my account number and routing number and told them to take the money for themselves. That is the HUGE difference between the two.
February 17th, 2008 at 07:06 am 1203231988