Escrow.com Blunder

[Spade]

I was notified this morning by Escrow.com that there was an error in one of my recent transactions. Apparently, when going to send out ACH's to several clients, there was a mistake between Escrow and Bank Of America and instead of depositing money into those accounts, money was withdrawn.

Wow....

This happened to 8 clients of Escrow. They claim in 9+ years of Business nothing like this has happened (Dont I feel special now). They claim they closed this "ability" through BofA and it will never happen again.

Not sure im satisfied enough to be using Escrow again.

 

[-Adam-]

That is actually quite concerning on several levels.

 

[Kate]

ACH is very dangerous... it was only meant for interbank settlement in the first place.

 

[henniemeijer]

Mistakes will always be made, as long as they will make up for the possible damage I do not think there is a problem.

It is always about how problems are dealt with I believe,
pro-active informing customers, no cover up and reasonable effort/willingness to pay for damages should be the norm.

Obvious not repeating the same mistake is also a priority.

That attitude would actually strengthen the customer loyalty
and instead of a problem it is an opportunity for them.

 

[bmugford]

I have dealt with Escrow.com many times with no real issues, however this type of thing is totally unacceptable. It could have caused an account to be overdrawn and checks to bounce. I would expect Escrow would have to be held responsible for any related fees.

Brad

 

[Spade]

I have dealt with Escrow.com many times with no real issues, however this type of thing is totally unacceptable. It could have caused an account to be overdrawn and checks to bounce. I would expect Escrow would have to be held responsible for any related fees.

Brad

They promised to Make it Right. I imagine their may be some account issues with overdrafts and such.

 

[wot]

They were upfront about it so a big plus on their side.

 

[Dimester]

I have used escrow many times and I always have them mail a check. I feel better protected this way.

 

[Spade]

At this point in time Im not sure I will be using Escrow.com in the future - Not sure I feel comfortable with their access to my finances.

 

[Kenny]

At this point in time Im not sure I will be using Escrow.com in the future - Not sure I feel comfortable with their access to my finances.

Were you one of the 8?

 

[Spade]

Were you one of the 8?

Yup - thats how I know about it.

 

[Kenny]

That sux! Have/are they fixing this?

 

[cache]

scary. However I don't know if there are better escrow out there. We just need to choose the lesser of evil.

 

[theuniverse]

what is the best alternative to escrow.com?

 

[Acquisition]

what is the best alternative to escrow.com?

EscrowDNS.com is excellent.

Managed by experienced and well reputable domainer "Rockefeller" over on DNF.

 

[Charley]

Is that cheaper than Escrow ?

 

[JoshuaPz]

They used to be but unfortunately they've recently jacked up their prices. They now charge 7% of transaction volume for exchanges under $2500 (was once 4%).

 

[wussadotcom]

They used to be but unfortunately they've recently jacked up their prices. They now charge 7% of transaction volume for exchanges under $2500 (was once 4%).

Are you referring to Escrowdns?

 

[kev]

Wow!

And escrow is the type of thing Id use for a big sale. Id have a canary if that happened to me :hehe:

 

[Spade]

Well, in the end - all was resolved. Just a minor scare for me - potential disaster for someone else.

 

[Seabass]

Years ago I had a bank withdraw money from my corporate account b/c I had overdrafted on my personal account by accident.....thereby causing personal business to get mixed with my corporate business. That really made me mad. I thought that to be so wrong on so many levels that I started using two banks very close to each other, and have personal and business accounts at each. One bank is for transactions that gets money funded to it from the other....the other only receives (besides funding the other accounts).

This way my bank, or my account numbers floating around at various companies like Escrow.com, can't touch my main funds at another bank . It's a damage control measure by setting checks and balances.

In your case Spade if that had happened to me the funds would probably not have been there....they would have been at another bank. I could have then told them to figure it out.

It sounds like a routine error on their part......but there is no excuse for that. That could make someone miserable.
.

 

[Domagon]

The other escrow companies (and/or their respective banks) mentioned in this thread could experience the same problem.

In regards to sdsinc comment about ACH being "dangerous". Not at all. ACH is reversible for upto 60 calendar days...

And due to a quirk in banking laws relating to bank statements, one may have even more time - upwards of 90 days to challenge an ACH transaction.

I've had bank wires (not ACH) be credited twice and I've had bank wires withdrawn twice. These incidents occurred with different banks / wiring parties. Point is mistakes happen in banking. Most are caught before one has to do anything ... and in those instances in which they're not, a phone call / letter usually resolves such matters.

Ron

 

[DomainNameWire]

I think it's unfortunate but not a big deal. Escrow.com made it right. It was likely just a human error.

When Clickbank started offering ACH a while back, they accidentally withdrew money from EVERYONE'S account rather than depositing it. Whoops!

The point is it doesn't make Escrow.com's service any less secure. They have a good reputation, are highly regulated, and I'm sure would have paid for any overage charges associated with their mistake.

 

[rockefeller]

Is that cheaper than Escrow ?

We charge a flat 7% ($25 minimum) fee for $1-$5,000 transactions. The reason we raised the fee was because of credit card processing, we are no longer allowed to charge a separate fee to people using a credit card. We're actually not that much more expensive than escrow.com. They use a tiered system that goes up to 6.3% for $1-$5,000...anyway, we are back up and running. We also cater do domainers that need to pay brokerage fees and all other complicated transactions.