State Farm Insurance
Inconsistent billing practices, deceptive advertising ripoff

On 5/13 I went to the office to make a payment for an auto insurance policy. The payment was for a monthly plan, which I have used before and clearly indicated before making payment. My debit card was charged and a receipt issued.

Upon examining the receipt, I noticed that my card was charged for the full amount of the policy. When I asked the reason for this, I was told that it would need to be cleared up by a billing office in Dallas.

I explained that charging the full amount would overdraft my bank account. The clerk insisted that the charge would not be posted until the following business day (Monday), and they would contact the billing office to resolve it. Upon leaving I immediately went to the bank and found that the charge did post within minutes, leaving my bank account in a negative balance.

I later called the customer service line and spoke to several different people. Eventually I was told that the company's agent offices cannot accept monthly payments from a credit or debit card. One of the representatives suggested that my bank should take care of the problem, otherwise they would issue a refund for the amount.

Instead of requesting an authorization reversal, which is the customary method for correcting errors, they are issuing a "refund". Since that takes longer, the bank will have plenty of time to rack up unnecessary fees.

This is not consistent with bills they have recently mailed which state "You can pay monthly!".

It's unclear whether this is an issue of miscommunication, lack of training on the company's billing methods and policies, or incorrect advertising.

Company: State Farm Insurance
Country: USA
State: Texas
City: Austin
Address: 12710 Research Boulevard Suite 210
Phone: 5122582231

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