Order of Applying Transactions

Sona_Iasg

Hello, first time poster here so be gentle!

Firstly can I apologise if this has been discussed before, i've had a quick look but couldn't find a thread on it.

I've just checked my balance online as, I do most days, and can see that yesterday I exceeded my agreed overdraft limit by £21. This is going to cost me £5 in charges.

Now i'm fairly sure that when I checked my statement yesterday I could see that I was getting close to the limit but there was a credit yesterday that made me think I would be ok. When I've checked this morning the credit has been placed after all of yesterday's debits meaning that for a period yesterday I was over my agreed limit.

My question is, can Alliance & Leicester do this? It's almost as if they've looked at it and said if we move these transactions about then we're going to make £5 of this account.

robpw2

barclays are the same even though the moneys in the avaliable balance untill the transaction shows on the account they can charge you £ 5 per transaction

rb10

Different banks have different policies on this, and it'll all be detailed in the T&Cs.

A&L will probably have a phrase in their T&Cs saying that money must be in the account by the night before any standing orders, direct debits, etc go out, as they go out in the early hours of the morning.

Some banks, like HSBC & Lloyds, will say that if you go overdrawn during the day, you won't be charged, provided the account is in credit by a set time during the afternoon - I think Lloyds' is 3.30pm, and others, like Halifax, will let you go overdrawn as long as the account is in credit by the very end of the day. It's just the different policies of different banks, and as it's all in the T&Cs, they are allowed to do it.

Sona_Iasg

Thanks for the replies. I'll check out the T&C's on the account when I get home tonight.

Milarky

If that credit you mention was a 'bank credit' then it should be treated as 'cleared' first thing in the day and fully offsets any payments from the account made the same day.

You say you are now £21 overlimit as a result of yesterday's movements. That definitely will lead to being charged I'm afraid. The order of the transactions is not significant provided they are treated as 'cleared' that day. Cash, for example paid in during the day would not have affected the payments going out (they are called first thing and either paid or not paid based on your 'available' balance at that time)

HSBC (and I think Lloyds) is different to A&L in allowing the customer to reinstate an overdrawn balance/overdraft before the end of the day (in effect they look one day 'forward' rather than one day 'back') and to avoid being charged. No such luck with A&L. But even with HSBC/Lloyds had you paid in cash but still left yourself £21 overdrawn as a result charges would apply.

Sona_Iasg

Milarky wrote: »

If that credit you mention was a 'bank credit' then it should be treated as 'cleared' first thing in the day and fully offsets any payments from the account made the same day.

You say you are now £21 overlimit as a result of yesterday's movements. That definitely will lead to being charged I'm afraid. The order of the transactions is not significant provided they are treated as 'cleared' that day. Cash, for example paid in during the day would not have affected the payments going out (they are called first thing and either paid or not paid based on your 'available' balance at that time)

HSBC (and I think Lloyds) is different to A&L in allowing the customer to reinstate an overdrawn balance/overdraft before the end of the day (in effect they look one day 'forward' rather than one day 'back') and to avoid being charged. No such luck with A&L. But even with HSBC/Lloyds had you paid in cash but still left yourself £21 overdrawn as a result charges would apply.

I maybe wasn't very clear with my first post but I'm not over my limit just now. I started yesterday within the limit, finished within the limit but for some undetermined period of time in between I was £21 over the agreed limit.

The credit that covered all of the payments was indeed a bank credit so I think i'll give them a call.

Extant

robpw2 wrote: »

barclays are the same even though the moneys in the avaliable balance untill the transaction shows on the account they can charge you £ 5 per transaction

We don't levy any charges for the amount of £5.

Ordering of transactions also does not matter. Interest and charges on Barclays accounts are calculated at the close of business - you can go a billion pounds overdrawn during the day and it will cost you nothing provided it's back there by the end of the day.

trynsave

A&L definately have a policy whereby all s/o and d/d have to be covered by cleared funds the day BEFORE they are due to be debited.

Credits paid in during the day will always be credited after the debits are taken out. Even automated credits eg salary/wages that get added overnight will show after debits, so you get charged for the nanosecond that you are overdrawn/over the agreed facility.

A&L won't budge on this, but will often refund charges on the first occasion as a gesture of goodwill if asked nicely... so be prepared to grit your teeth, eat some humble pie and sugar coat your words.

If you opened an a/c with them for the £100 - bank it and run asap!

chnelomi

sona double check your account it should tell you if you are going to be charged any fee's(online statement). my account dose that even when both balances show the same amount available(due to bank credits etc)and i then pay a SO etc and the next day when the statement is updated very often i have went over drawn but only during the process time and I've never been charged.