Is it possible to request NO unauthed Overdrafts?

starnight_2

I have two basic accounts, one with debit card, other without. I can't use the debit card without the funds present in the account, even if I'm only a penny over. Means I can use my debit card, and yes I can setup DDs with this account also. The other I only use for separate money to go into.

collingbone614

I recall seeing on the BBC that banks make a third of their entire revenue from current accounts from the charges. They aren't likely to change anything if they can help it.

Viper_7

starnight wrote: »

I have two basic accounts, one with debit card, other without. I can't use the debit card without the funds present in the account, even if I'm only a penny over. Means I can use my debit card, and yes I can setup DDs with this account also. The other I only use for separate money to go into.

This is a practical and safe thing to do. The basic account only having in money you need for the week or whatever, and then should your card be compromised and money is taken out fraudulently (you'll get it back "eventually") at least it wasn't your main account and you can quickly set up another basic account.
Can almost use it like a pre-payment card, but it's you topping it up from your main account.

dzug1

SurlyBonds wrote: »

Of course it is. Just send a recorded letter giving them 30 days notice (or whatever number of days they have in the contract) stating that it is a negotiated term. They can't argue that it's too difficult, as they can bounce Debit Card payments wehn not enough money... yet, not surprisingly, never charge you £25 for doing that!

State in the letter that you do not wish them to process any payments that would put you in a position of going into any breach of contract, or that would incur any charges.

They can't have it both ways.

Under Clause 5, you have the right to have equitable terms in the contract.

But you making a unilateral declaration that it's a negotiated term doesn't make it one. You can't have it both ways either

And I have a sneaking suspicion that clause 5 will go the way of 'unlawful penalty charge' that people were so sure about at one time.

euronorris

I don't know why you are allowed to go overdrawn without an overdraft facility anyway.

The 'embarrassment' excuse doesn't wash with me. A few months ago, I went to pay for something here with my Dutch card, and it was declined (a payment had been taken from my account that day which I wasn't expecting until next month).

I was embarrassed but it wasn't the end of the world. I then went home and transferred some funds from savings to current account and all was sorted.

No unauthorised overdraft, no charges, just a little embarrassment and I'm not bothered by that in the slightest.

Tom1234

LeeSouthEast wrote: »

Keep a closer eye on your money. Personal responsibility and all that.

*dons nomex underpants*

What makes you assume I'm not already keeping a close eye on my money?

I'm not in a position where I'm being regularly charged (ok, occasionally it happens, but thats not the issue here). However, I feel that I should be able to request that my bank offer me the option of simply declining my requests for payment when I specifically request they do this rather than charging me.

What is it stopping them putting this in place on a regular account?

Geedoubleu_2

You can't prevent unauthorised overdrafts with an account that allows Visa/Switch payments.

This is because not all transactions are authorised with the bank, so are not declined once you hit your limit.

nsabournemouth

Sometimes a retailer is at fault here too. The payment cab be approved but they may not go for it for 1 or 2 days. I think they just see if there is enough monmey in your account and don't collect it straight away.

WestonDave

nsabournemouth wrote: »

Sometimes a retailer is at fault here too. The payment cab be approved but they may not go for it for 1 or 2 days. I think they just see if there is enough monmey in your account and don't collect it straight away.

The machine will check whether funds are available at that moment. If its a credit card, then it will reserve part of your available balance which makes it impossible for another transaction to use the same balance. This is why if you have an online credit card your available balance will often be different to your actual balance - the available balance takes account of all the reserved amounts that it knows are coming but haven't hit yet.

If its just a debit card it can't do that. So with a debit card you could then go to every shop down the street and spend £20 even though you only have £20 in your account. Its only when the machines actually download the transactions overnight that all the £20's would hit the account and the problem arise.

Its not really the retailers fault that the system works in this way. The problem with debit cards is they are only one way of taking money from a current account, and the card payment infrastructure was really designed for credit cards. You therefore have the problem that the overnight processing on debit cards leaves the balance clear to be taken by other means (direct debit, cash point withdrawl etc) before the processing actually hits the account.

Morglin

Tom1234 wrote: »

Might be a stupid question, but is it posible to request that your bank does not let you go over your agreed overdraft limit?

Ie if I try and put a £10 transaction through when I'm £5 off my limit, it'll simply be declined?

I can't put a £10000 transaction through when I'm £5 off my limit, so the mechanics are obviously in place to prevent this, however does anyone know if it's possible to request this put in place?

Yes, ask them to apply the same regs as a basic account - there is no overdraft facilities on those.

Lin