Can they do this???

rb10

Today is a bank holiday, and hence is not a bank working day. It is just an empty space, and does not count for anything, in terms of banks. Therefore, any payments that would have been due today will go out tomorrow instead (e.g. your direct debit). As far as bank working days go, 9am Tuesday follows immediately after 5pm Friday, there's no time in between (in general).

So you had £150 in there by 5pm Friday - and as 9am Tuesday is immediately after this point, they can earmark funds at any point over the weekend that are due to go out. So £150 - £99 - £10 - £125 = -£84, which is why you were overdrawn. It looks like your Child Benefit was paid early, possibly because of the bank holiday, but you are still over your limit.

You'll generally find that the big five banks will be a little more flexible, e.g. cash paid in on Saturday will be there in time for a Monday direct debit, but all that will have been done here will be in your T&Cs.

willo65

If the bank isn't showing wages yet then maybe the company is paying late or they pay by fp rather than bacs?

jipp05

Hi, im not sure i understand all this but here goes.

How come they took the money on the friday? i have a direct debit coming out tomorrow with my clydesdale account but i didnt transfer the money in until today. this has never been a problem for me before and never received any charges and also they have never took any money from me due for a direct debit over the bank holiday until the tuesday?

kibs

I would definatly see the bank manager, as it makes no sense at all.

I have dd's going out today (Tuesday). THe money is still in my bank account allowing me to spend it if I choose.

I can, and have, put the money into one of the accounts the same day, in the pm as the dd is leaving, afterall, a cash deposit gets credited instantly.

If this is the practice of the bank, then I would take me custom elsewhere.

willo65

If the d/d is getting bounced due to lack of funds and you don't transfer in until today then it may be too late to pay in but if the bank has decided to pay the item then if in credit by close of business depending on bank then this should be ok.

RobertoMoir

sarjay32 wrote: »

thanks for all your replies.

maybe i didn't explain it fully but i'll try to explain it better (although i may be confusing myself now!),

my tax credits go in on a thursday (147.39) and my child maintenance goes in on a friday (50.00) therefore, i ended up with just over 200.00 in my account (as i'd still got a few pounds in there). I withdrew £50 on friday (at lunchtime) and my balance was showing as £150.00 available to withdraw. When i went back on the saturday i was £38 overdrawn. Now i totally understand them earmarking funds for a direct debit (which was due today - monday - for £99 - which would have been left untouched) but they then have earmarked a standing order for £10 to go into my savings account and £125.00 standing order to go into my rent account due every tuesday, they accounted for my child benefit which goes in on a tuesday but not my partners wages, which also go in every tuesday!

It annoys me because it seems they can pick and choose what they credit and debit when they want! without a thought for the actual person whose money it is, i try very hard to manage my money and following all the useful advice and tips from this great site i have managed to budget accordingly, but this totally threw me! Maybe i am just not good at understanding the ins and outs of the banking world! but then i am just an ordinary mum trying to do the best for her family.

Thanks again for your replies.

The wages transfers probably haven't been received at their end yet. I appreciate why you're taking this personally and thinking that they're "picking and choosing" stuff, because your life is obviously personal to you, but this is just a business arrangement to the banks, no more and no less. They don't see wages and bills, they see money coming in here and going out there on whatever date it comes through.

sarjay32

just a little update on the situation.....

this morning i checked my bank (8.30am) and it was still sitting at £38 overdrawn, when i checked later on (about 11am) there were still no wages showing as being credited, they had returned my DD as unpaid and put a charge of £35 on my account immediately!!! However, upon checking again just now, the wages have been credited but the DD is still unpaid and the charge is still there:mad: so i am going in this afternoon to see whats going on cos i really don;t understand it at all!

Also my standing orders for £10 and £125 respectively were debited after 5pm on friday (the earmarked funds!) but the £10 - which goes into my clydesdale savings account which is linked to my current account wasn't credited until today?! and the £125 which is transfered to my Nationwide account for my rent won't be shown as credited until thursday!! can anyone explain that then?? if 'earmarking funds' is indeed standard practice - why weren't the credits showing on friday???

Thanks again for all your advice and opinions - its good to see what everyone else thinks!

Sarah

Castleman

You should always make sure that any deposits are cleared the day before a DD or SO goes out, as neither have a time put on them...and this is the problem you're facing.

A DD/SO can be taken anytime after closing time on the day before and a deposit may only arrive up to the end of the day.

As such, you can be negative for some of the day. Normally if it happens within the day, you don't get charged, but it can happen and worth making sure you don't set it up this way.

willo65

Looks like the company pays you by f/p and as such the decision to bounce your d/d had already been made.

thriftymomma

It also works the other way though, if you were due a credit on Tuesday, that would have shown on the Saturday too as pending. It is quite infuriating the other way around t hough so I do see your point.