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Need Info Regarding Agreements


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What I am looking for is in regards to a consumer entering into an agreement with a business, or, CA/JDB/ATTY.  Either written or oral, whichever applies to a specific agreement.  Here is the scenario.


A consumer signed a written agreement with a Heating and Air Conditioning company agreeing that on the first of each month, a specific amount of funds would be taken from a checking account.  Everyone knows that if the first of the month is the agreed upon date, and the first falls on a weekend, the amount is not drawn until the first workday following, such as Monday, or Tuesday, if a holiday is involved.


My question is can one consider it a breach of contract if the company takes the funds on Friday, preceding the agreed upon date?  No where in the agreement is it mentioned as to when they take the funds if a weekend is involved.  And, knowing this, the default would apply, which is the following Monday.


Has anyone heard or seen, or, know anything about this?  Any help would be appreciated.

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Your contract should have something like this if they are taking money early call them and tell them your taking money early on the 15th or what ever day they are withdrawing.

If it falls on the weekend then that is the agreed upon date.

You gave them Authorization to Honor Automatic Credit Card Payment Drawn by

Honest Eddys Air Conditioning & Heating

Account Number:

ABA Number (Bank Routing):

Drawn the 1st of every month in the amount of $____________________

Name on Account: _____________________________________________________________

Bank Name: __________________________________________________________________

Branch: ______________________________________ Phone Number: __________________

City: ___________________________________ State: _____________

Zip Code: ______­­­­­­____

Customer Name: ___________________________________ ID# _______________________

Customer Signature: _________________________________ Date ____________________

Customer Name: ____________________________________ ID# ______________________

Customer Signature: _________________________________ Date ____________________

Effective date of authorization: ___________________________________________________

Complete This Form Only for Automatic Credit Card Payment

Authorization to Honor Automatic Credit Card Payment Drawn by

Honest Eddys Air Conditioning & Heating

Depositors Name:(Please Print) ______________________________________________________

Signature of Depositor: ________________________________________ Date: _____________

Signature of Joint Depositor: ____________________________________ Date: _____________

Account Number: _______________________________________________________________

Security Code #: ______________________________ Date of Expiration: _________________

(Located on the back of card)

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This would apply to your credit card only not the agreement with Honest Eddy unless this is in your agreement.

If your payment due date is on a weekend or holiday (when the company does not process payments), you will have until the following business day to pay. (For example, if the due date is Sunday the 15th, your payment will be on time if it is received by Monday the 16th before 5 p.m.).

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Thanks, racecar, for the info. Plus, your agreement sample is perfect.

I probably should have been more clear. There is no credit card involved. This is done by an ACH directly to the checking account, similar to anyone paying bills by "Auto Pay", as offered by many utilities, etc. All of them, as I have had personal experience, plus, input from others, follows the same as I am seeking info on, in that the first business day after weekend is when funds are withdrawn.

And, like you mentioned in your scenario, the transaction is processed the first business day following the weekend. In short, to me, this could be considered a breach, but, want more solid info before pursuing.

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I was doing a little research into this.  I could be telling you something you already know, but...


ACH = Automated Clearing House...this is just the online money transfer system that handles moving the transactions around.  They charge their customers (the "biller") a fee for doing the transfer and do have rules for formatting the transactions and handling returns and so on.


Its the creditor that writes the rules for when the transaction is sent to ACH.  In the case of my bank, they sit on payments until the next business day...same with deposits.


So...what you really need, is the T&C of the biller.  From what I've seen, this does vary from "next business day" to "immediately".

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This really got me curious...here's  BofA's T&C's:  https://www.bankofamerica.com/online-banking/service-agreement.


I cut out part of the gibberish and pasted it below.


Note the part in BOLD.  Its saying that if you use BofA to make a recurring payment, and the pay date falls on a weekend or non-bank day, they debit your account the day before...so, it was probably your bank's fault for paying early. 


If you actually made arrangements with the creditor to request payment from your bank on a certain day, I would expect their T&C's to say something similar.


 Scheduling Bill Payments
  • The scheduled delivery date is the date you enter for the payment to be delivered to the Payee. For payments made by electronic transmission or corporate check, the payment amount will be debited from, or charged to the account that you designate on the scheduled delivery date. If the scheduled delivery date is a weekend or non-bank business day, then the delivery date will be the prior bank business day. For payments made by personal check, the account you designate will be debited when the check is presented to us for payment which may occur before, on or after the scheduled delivery date.
  • For payments to a Bank of America loan, line of credit, or mortgage, Bank of America will process and credit the payment to the appropriate account effective the same business day, provided the payment is scheduled prior to the 5:00 p.m. ET cut-off.
  • For payments to Bank of America Gold Option and Gold Reserve accounts, Bank of America will process and credit the payment to the appropriate account effective the same day, provided the payment is scheduled prior to the 11:59 p.m. ET cut-off.
  • When you attempt to schedule a payment, we will inform you of the earliest available delivery date. To assure timely payment and obtain the full benefit of the Online Banking Guarantee, you must schedule payments and your account must be in good standing at least four (4) bank business days before the payment due date. If you do not, or if for any reason your account is not in good standing, you will be fully responsible for all late fees, interest charges or other action taken by the Payee. If we are unable to complete the payment because of insufficient funds in your account or some other reason, we will send you an alert to the email address you have provided with this Agreement. We will also notify you if your account is no longer in good standing and eligible to be used for bill payments. As indicated above, some payments may be made by a personal check. Since we can't predict the exact date that a personal check will be presented to us for payment, please make sure you have sufficient funds in your account beginning a few days before your scheduled delivery date and keep such funds available until the payment is deducted from your account.
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