monthly loan payment reversed by bank

prufrock

hi there,

i looked to see that my monthly loan payment had cleared last friday. however it put me over my overdraft limit. this morning the bank had reveresed the payment!! the loan is with a different building society set up with direct debit. i do not have the funds to make this transaction this month.
i have called the bank but they tell me there is nothing i can do.
should i call the building society and what should i say?
does anyone know what will happen next?
any help much appreciated!!

CLAPTON

prufrock wrote: »

hi there,

i looked to see that my monthly loan payment had cleared last friday. however it put me over my overdraft limit. this morning the bank had reveresed the payment!! the loan is with a different building society set up with direct debit. i do not have the funds to make this transaction this month.
i have called the bank but they tell me there is nothing i can do.
should i call the building society and what should i say?
does anyone know what will happen next?
any help much appreciated!!

It depends upon your overall financial circumstances

Basically is this one off problem that can be corrected next month or are you in serious financail difficulties?

post up a SOA i.e.
http://www.makesenseofcards.com/soacalc.html
and say a little about your circumstances

This board can be a little harsh so you may wish to post on the debtfreewannabe board.

prufrock

hi clapton,

thanks for your reply. i have just run the check and will post on the appropriate forum...

in the meantime i suppose it is a bit of both. i went far too high on my overdraft (limit 500 but end of last month 1000) and this month the bank have tightened things was 750 overdrawn but now under my overdraft limit as they reversed the direct debit.

i went to coventry building society who the loan is with but on their screens it still shows as being paid. obviously it will take a day or two for theres to update. i am worried because i do not have the money to pay it this month, although next month *should* be ok as i have additional income from a second job i do coming in as well as my regular salary. however i do not know what the building society will do in the meantime. also would they expect two payments next month or will they take one, give me charges and extend the loan by an extra month?

CLAPTON

How is the payment made; by DD or standing order?

I'm not sure about the process of reversing the transaction; I would have thought that once it's paid it's paid.


If the payment is reversed then its likely they will try to take the money again...

prufrock

hi clapton,

it is by direct debit. i haven't had a reversal before so im not too sure about it.

TheGrant

It's not paid. A program takes off your direct debits. At the end of that night (or later) another program detects you couldn't afford it and adds it back on. ( This process my vary from bank to bank, but that's roughly how it happens.)

They'll probably represent in a fortnight.

prufrock

thanks for the replies. but what does "represent" mean? is that my bank will "represent" or the building society that the loan is in?

TheGrant

Oops. Sorry. Missed the hyphen. Re-present. The folk who want the money will try again.

prufrock

thanks for clarifying thegrant. unfortunately as things stand it will just get rejected again (unless i can do really well on ebay in the meantime). and then i wouldnt even like to think what will happen.

is it possible for me to talk to the building society and ask them to give me 1 months grace? has anybody ever tried and is there a chance of success?!?

CLAPTON

In the end if you haven't got the money then you can't pay.

So yes, it's best to talk to Coventry and explain the circumstances... work out what you can afford to offer them before you speak to them... can you pay afford to make up the missing payment or do you need to miss one and extend the loan?

Also be aware that your bank may make charges for going over your OD which may make you even more over the OD and then incur more charges... so factor this into how much you can afford to pay the Coventry next month.

Presumably you are now looking at your general level of spending etc to avoid these issues in the future as the charges might mount up to a sizable sum.