Payment Arrangement entered incorrectly by AT&T. Service was suspended as a result.

Payment arrangements cannot be done by calling those arrangements are kicked out by the computer. The only arrangements are done online by logging into your account. 

Is this a new change!  I was able to set up, schedule and complete a Payment Arrangement last month without issue. Also, the Customer Service Rep I had spoken with on 6/24 stated that this most recent Payment Arrangement was successfully entered and accepted. I asked if there would be a late fee and he stayed no, since the arrangement was in place it would prevent that.

I suspect if you made a pay the payment arrangement last month, and then made another one this month, it was rejected after the fact. The last thing A T & T wants to do is extend payment late payment arrangements for someone month after month after month. There are in fact a limited number of late Arrangements you can make in 12 months. 

If you have exceeded the number of late arrangements for this calendar year, or for the last 12 months, your ability to make late Arrangements is no longer available. 

This is actually not new. My memory is this goes back to 2015 when the ability to make late Arrangements through customer service was limited to what is available on the computer which is the exact same Arrangement that you could make in the online account on your own. If you already tried to make arrangements this month in your online account and we're unable to do so, it's because the computer has rejected it. Any attempt to override this by customer support would also fail. 

Customer support may be required to take a partial payment and apply for a late payment arrangement, but it may not take effect.  They may even know it will be rejected. I do wish they were honest with customers though. If you're late payment arrangement is going to be rejected and you will get suspended if you're not paid by a certain date they at least owe you the courtesy of telling you so. 

This... 

https://www.att.com/support/article/my-account/KM1025834/

Hello @E_L_1234 we are here to help with your payment arrangement and suspended account.

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Mellira, AT&T Community Specialist