Fast payment system - watch out!

cre8toruk

Hi,

I thought I should bring this to everyone's attention... not sure this is in the correct place but hey perhaps someone could move it if necessary.

My company has just switched from the old BACS system of paying salaries to the new "fast payment system" that all the banks seem to be promoting at the moment.

Last week after I got paid I received a letter from my bank, Alliance & "spit" Leicester, saying that three direct debits had been presented when there was insufficient funds to pay them, and that therefore a "payment review fee" of £25 would be charged for each item.

When I checked these direct debits had gone out the same day (28th) that I got paid.

I'm currently doing the to and fro' of secure emails trying to get them to give me that £75 back, though I'm not hopeful.

They told me that the reason for the charges is that now with the new system they get less time and unlike BACS the money isn't effectively in my account the day before (as it was under BACS).

I find it utterly incredulous that they can charge me for "failed" items when they know the money will be in my account on that day. For the last 22 years my direct debits have gone out the same day I get paid..I find it much simpler to manage the account this way.... now I am having to phone all my payees to arrange for the direct debits to go out a day or two later, to cover the banks inflexibility....

I am very cross... but with the new system coming on line all over, everyone should be warned... this won't be the first or last I'm sure.


Paul.

willo65

The money needs to be in your account the day before your d/d's go out - the reason it has caught you out is that if the d/d's are presented and returned at 4:00am and then your work makes payment at 10:20am then item already concerned and its too late

peachyprice

It's not the system or bank that is at fault, it's your salaries department.

The faster payments are real time transactions(give or take an hour or so), the bank will not know the money is on the way until your wages dept has sent it, unlike BACS, and if your wages department do not send it until half way through the day it will hit your account the same day but will not be there for DD's that are processed in the wee hours.

Your wages department need to be paying you at 0.01hrs on pay day at the very latest, but preferably the day before, for the bank to know funds are there to cover the DD's coming out.

cre8toruk

sorry but it I believe I'm being charged unfairly on a technicality.

The bank has known for the past 22 years when I would be paid and for the last four months this time.

When I checked my account at midnight 27-28th it showed an available balance that indicated my salary had been paid. My online statement didn't show the payment but the balance indicated it.

What I was / am trying to warn people about is to not get sucked into the same problem I have experienced, doubtless other people have their direct debits queued to go out the same day they get paid and they'll all suffer a similar fate if they're not warned.

Nathan_Spleen

Not all the major banks are signed up to the Faster Payment System yet so for the FPS to work both the sending and recieving banks have to be in the scheme and even if they are it can take until the next day for a transaction to arrive.

natweststaffmember

cre8toruk wrote: »

sorry but it I believe I'm being charged unfairly on a technicality.

The bank has known for the past 22 years when I would be paid and for the last four months this time.
They do not know whether you have been made redundant since we are living in tough times.
When I checked my account at midnight 27-28th it showed an available balance that indicated my salary had been paid. My online statement didn't show the payment but the balance indicated it.
What I was / am trying to warn people about is to not get sucked into the same problem I have experienced, doubtless other people have their direct debits queued to go out the same day they get paid and they'll all suffer a similar fate if they're not warned.

I think that is a fair point, but I would suggest the advice given is to speak to the employer and make sure they pay the money into the account on time. Unfortunately, Direct Debits are on the BACs system and does not take into account Faster Payments.