I noticed that on my last lease statement from AHFC that they've introduced a new system called Phone Pay where you call in to an automated number and [presumably] enter your account number and bank information so that they can debit your account for a payment. They claim that you can "save time... and money". I understand the time savings, but reading the little brochure enclosed with the bill, I discovered there is a $3 or $4 fee for using that service. How exactly would I be saving money by paying a $4 fee over a 34 cent stamp?

 

I guess if you're running late getting your payment out you can avoid the late charge by using Phone Pay in which case the $4.00 represents a savings over the penalty. Phone Pay is actually run by Western Union and is used a lot by big companies. If you pay on time, there's no advantage to using Phone Pay.

 

These services use ACH (Automated Clearing House) transactions any large originator (Honda would be paying pennies (3c to 10c) for the transactions and they eliminate high cost of LockBox (Paper Check) processing fees.

if the services you described is to create a one time payment there are additional risk for the processor (risk of some one not entering there proper banking info (generally not a problem in a AUTO finance case). But this conveyance of not being late on your payment (one Time) is why they feel they can charge for the service.

If you are willing to allow Honda to debit your account monthly.

Call them and see if they have a reoccurring debit program Tell them the debit must only be effective on the lease do date and you want the service free.

Ha, I don't know anything about Headers, Springs or Mods. But I do know Cash Management services. Glad I can finally answer something on this sight.

 

Hahah welcome aboard OldBob. If you don't want to discuss headers, springs or mods, but still want to contribute, check out the off-topic part of this board.

 

They do have a recurring debit program... they solicit you to sign up for it with an insert in your statement about every 3 months. I don't believe there is a fee for this, however.