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Pre-Authorized Tax Payment Error - Update

As advised on Tuesday, Nov. 26, there was a City error in processing the Dec. 1 withdrawals for people who opt for the monthly property tax payment plan
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NEWS RELEASE
CITY OF STRATFORD
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As advised on Tuesday, Nov. 26, there was a City error in processing the Dec. 1 withdrawals for people who opt for the monthly property tax payment plan.

Why did this happen?

There was an error in posting the payment to our bank in which the incorrect payment date was entered. This was a human error by staff, and while we have reviews and controls in place, they are not infallible.

How is the City ensuring that this doesn’t happen again?

This is not a common error, and we have strong internal controls in place to ensure errors like this do not occur for many types of transactions. Simply put, this was a mistake. We have a very caring, dedicated and accountable team of finance professionals who care very much about our residents and sincerely regret the inconvenience this has caused.

Why isn’t the City reversing the payment?

The City has a large number of residents who use the preauthorized payment plan.  Reversing the payment was considered, but it became apparent that for most, this was one or two-day inconvenience, and a reversal would take longer.  We know that there are other people whose experience is more significant, and we want to try to help however we can.  Unfortunately, due to the number of customers, we cannot do individual reversals.

Why did my Bank even allow this?

Some banks did not allow it, as it fell outside of the agreed upon withdrawal date. It depends on the bank, and we encourage you to contact them to discuss how their rules ensure that preauthorized payments are not honoured outside of the agreed upon date.

What will happen on December 1?

There will be no additional automatic monthly withdrawals for December pre-authorized customers.

What if I didn’t have the funds in my account when the payment was withdrawn?

That also depends on your financial institution. 

Some did not allow the payment to be withdrawn, so you will need to make arrangements with the City to make the payment for the December amount due.

Some allowed their customer accounts to become overdrawn to accommodate the payment.  In this case, you do not need to do anything else, your tax payment will be applied to your account at the City. 

Some rejected the payment as ‘NSF’ and no funds were transferred to the City.  You will need to make arrangements with the City to make the payment for the December amount due.

What if I incurred fees or NSF charges at my Bank?

Contact the City to discuss your situation and we will work with you on specific remedies.

Will the City be charging me late fees or other charges?

No.

How can I make up the payment?

There are a couple of options.  Please contact our office to determine which one is most convenient for you.

Will an NSF impact my credit rating?

The City does not report NSF activity to the credit bureau.  If a payment to another organization was affected, you may wish to contact them directly.  Typically, if it was a third-party error (in this case, the City), these would not be reflected on your records.

I called and haven’t heard back. Why is the response taking so long?

There have been a large number of calls and walk-ins since this occurred.  Staff are doing their best to contact everyone who has left a message, and we appreciate the patience as we work through the callbacks.

Do I have any other choices for making my payments?

Preauthorized payment plans are optional.  Should you choose, there are other options for paying your property taxes that allow you to pay on your own terms.  We are happy to discuss those options with you.

How do I contact the City about this?

You can contact us by phone at 519-271-0250 extension 5212, by email to our tax division or in person at the main floor reception desk at City Hall.

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