Annuity Payment Late!

[JessiesGirl]

What is the name of your state (only U.S. law)? Arizona

I have an annuity that is to be paid on the tenth of each month, as stated in the contract I have with them. It started paying me back in January 2009, and each month, I have received the payment with no problems. In addition to monthly payments, I was to receive a bulk payment on June 1, 2010.

I sold that bulk payment to another company almost 2 years ago, but didn't sell my monthly payments. The other company received their payment June 2, 2010, but I have yet to receive my monthly payment.

My annuity company said they sent my payment to my bank and that if I didn't get it, then it's my problem. My bank says they did not receive even a pending transaction. I was told by the bank that my other monthly payments have all posted the night before the 10th, with no exceptions. The annuity company says tough, they sent it and that's that.

I can't get relief from the bank or the annuity company. I depend on this money each month, and our bills are set up to be paid on the 10th of each month, so the fact it's not there is devastating.

My husband says this is breach of contract. If I receive my money late, is it? The annuity company is now saying they processed my payment late because the bulk payment messed up and shut my account down until the bulk payment was processed. But they insist they did send it. Which they couldn't have. I think it shouldn't have made my monthly payment late and that it should not be related.

Is this breach of contract?

Thanks,
Kathy

 

[ErinGoBragh]

What is the name of your state (only U.S. law)? Arizona

I have an annuity that is to be paid on the tenth of each month, as stated in the contract I have with them. It started paying me back in January 2009, and each month, I have received the payment with no problems. In addition to monthly payments, I was to receive a bulk payment on June 1, 2010.

I sold that bulk payment to another company almost 2 years ago, but didn't sell my monthly payments. The other company received their payment June 2, 2010, but I have yet to receive my monthly payment.

My annuity company said they sent my payment to my bank and that if I didn't get it, then it's my problem. My bank says they did not receive even a pending transaction. I was told by the bank that my other monthly payments have all posted the night before the 10th, with no exceptions. The annuity company says tough, they sent it and that's that.

I can't get relief from the bank or the annuity company. I depend on this money each month, and our bills are set up to be paid on the 10th of each month, so the fact it's not there is devastating.

My husband says this is breach of contract. If I receive my money late, is it? The annuity company is now saying they processed my payment late because the bulk payment messed up and shut my account down until the bulk payment was processed. But they insist they did send it. Which they couldn't have. I think it shouldn't have made my monthly payment late and that it should not be related.

Is this breach of contract?

Thanks,
Kathy

No, it's not breach of contract. If you put that you were to receive payments on the 10th with the annuity company, that is the day that the annuity company sent it out. Bank processing times for these transactions typically take from 1-3 business days. If you needed it by the 10th, you should specify that it go out the 5th, to allow for weekends and possibly as many as 3 business days. The annuity company has not breached the contract from what you describe; chances are the money is still in limbo with the bank or transmission and will be there in a couple of days.

ETA: Given a reread of the post, even if it was their error that it was sent out late, it's STILL not a breach of contract. But if they said they sent it, I'm willing to bet that they are not lying to you.

 

[JessiesGirl]

Ok. I guess I have to take that answer. I don't have a say in when MetLife sends the payment. I only have the paperwork from them stating I am to be paid on the 10th of each month (it's a MedMal annuity, not a normal annuity. I didn't set up the annuity or pay it, my lawyers did). So as much as I'd like to tell them to post it earlier, I really have no say. I did get the money this morning, after talking to two reps and a manager yesterday, all who gave me differing stories as to why my money wasn't in my bank. One said it was processed on the 8th and should be there today or Monday. The second said it was already at my bank, period, don't argue or question her. The manager who called me back at my request said there had been a glitch in the systemn and she was sorry but they sent out the money that afternoon and hopefully I'll get it Friday (today).

It doesn't seem fair that there is nothing I can do to ensure I get my money each month on time. How can I prevent this from happening again? I have already stretched out our payment due dates to accomodate this payment date. I am supposed to get another 31 years of payments from this company. I've had 1 1/2 years with no problems, until this month.

I don't want to sue. I did if I wasn't going to get my money on time, messing up my payments to others and being able to buy groceries, etc. But since I have it now, I'm dropping the issue and just would like to know how to prevent this in the future, or am I at their mercy?

Thanks,
Kathy

 

[Betty]

There's really not much you can do - sometimes things like that happen (ie "glitch in system"). If you have been receiving your payments for 1 1/2 yrs. without a problem, it doesn't seem this is anything that is going to happen very often.

You might check & see if they can send the payment out on an earlier date if you want to be sure you receive it by the 10th.

 

[JessiesGirl]

Thank you

Ok, I am a trusting soul about these kinds of things naturally, and since this is the first time I've had a problem, and I did receive my money (even if a day late), with my hands tied, I will just have to trust there won't be another issue. I mean, there's another 30 plus years on this annuity, and I can't cash it out, so I don't have a choice, really, do I. Oh well. I hate having to worry about things. If I don't have control over it, and it's a one-time issue (hopefully), then I'm moving on.

Thank you to to Erin and Betty for replying. I was so super-stressed about this. I would rather the money just be there each month when it's supposed to, and since there won't be another bulk payment due for another 5 years, I guess I don't see where a "glitch" could be blamed again. Hopefully .

Have a good weekend!
Kathy

 

[Betty]

You're welcome for the replies. Hopefully payments will be on time in the future as they had been previous to this "problem" one.

 

[Dandy Don]

At the very least, you need to be talking by phone with someone at the annuity company AND IN WRITING so that they can officially resolve this in the event of preventing the problem in the future.