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  • FIRST POST
    autumnsymphony
    Direct Debit payments!!! Bank taking them early!!!!
    • #1
    • 22nd Apr 08, 10:41 PM
    Direct Debit payments!!! Bank taking them early!!!! 22nd Apr 08 at 10:41 PM
    Hi everyone
    Apologies if this has already been reported but I am soooooo mad about my bank.....Lloyds TSB.

    I have standing orders and direct debits set up from my current account to pay the usual utilities etc. The direct debits are due to leave my account on the 21st of each month.
    I logged onto my account on Sunday 20th (April) and to my horror I only had 29.99 in my account - when there should have been around 600 in there! I checked my statement and couldn't believe that there were payments going to my mortgage, gas company etc etc stating that they had left my account on the 21st April. I checked the date on my PC and then a calendar and my diary to see if I had dates wrong - but no it was Sunday 20th! I then checked my direct debit details and they all said...."last payment taken on 21/04/08"!!!!!:confused:
    Impossible as it was only the 20th!

    I sent an email to my bank asking what they were doing letting them out before the date - as we all know that the direct debit mandate states that payments will be taken on or after the date. I questioned what would have happened if I hadn't already had the money in my current account as I could have quite easily been keeping them money in my savings account and doing a transfer on the day before the payments were due!

    The reply i received today from Lloyds TSB was shocking and I thought you should all be aware of this. I have copied the whole reply to see what you all think.
    Dear Mrs O'Donnell,

    Thanks for your e-mail about future dates showing on your statement.

    Automated payments, such as standing orders, Direct Debits and Internet Banking Bill Payments are processed in batches, five times a week. Our payment processing occurs from Sunday to Thursday and deals with the following working day's transactions. Due to this, payments due to debit an account on a Monday are processed on a Sunday afternoon at around 12 noon.

    At this time on a Sunday, the system operates as if it was Monday. Therefore, automated payments can leave your account after around 12 noon, but they'll show Monday as the transaction date.

    In the case of debit card transactions, the beneficiary can claim payments on non-working days. These payments will be processed on the next available working day, however, until this time the money is earmarked and taken away from your 'Available balance'.

    When you make a transfer between your own accounts over the weekend, the money will be instantly available for you in the account, however your statement will date the transaction as the next working day.

    The reason that this shows on your statement, is because Internet banking allows you to view your statements in real-time, which means you can see transactions as they're applied to your account.

    This is a system that has been in place for some time. However, as its now possible to view your account online in real-time you can now view the transactions as they are applied to your account.

    If there's anything else we can help you with, please let us know. Alternatively, to obtain an instant answer, why not try using our Online Help Centre at
    http://lloydstsb.creativevirtual.com/LloydsTSB/? It answers over 90% of our customers questions.

    Many Thanks

    I have just emailed them again saying that I feel that this is wrong - what do you all think? my email reply to them below.
    Thanks for the explanation - but this still could have overdrawn me.....resulting in me having to pay a lot of bank charges and getting payments refused no doubt!
    All direct debit mandates state that the payment will be taken ON the date or AFTER if the date falls on a nonworking day! So why do you have the right to do things differently?

    What would have happened if I would have had the money in my savings account and then logged on to transfer it on Sunday 20th ready for the bills going out on the 21st? I would have been in deep trouble with your charges and the recipiants!!!

    I do not feel that you have the right to do this whether you 'batch' your payments or not!

    I will be looking into this further as I am sure there are millions of people out there that do not realise this is happening.

    Look forward to hearing what you think....... maybe this is how they are going to make their money back for all the charges we've claimed back from them!!!!

    AutumnSymphony


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