Bank charge help

aard1vark

Hello there, my first post here but I'vejust had a really informative browse thanks:beer:

The situation is
Me and my girlfriend at are university, we both live in the same flat and both bank with HSBC, and both the same normal saver account with no overdraft function. The housing company takes our rent via direct debit in 3 installs in line with out loan that comes through (Sept, Jan, April).

However this term they have decided to take our rent out before we get our loans, resulting in going overdrawn and being charged. Mine for some reason was automatically reversed so HSBC didn't charge me. When my girlfirend tries to reverse it over the phone they tell her there's nothing they can do and they will charge her 25 pounds for the curtesy!

Can she claim it back from the bank, or should she seek to claim it from the housing company? I know its only 25 pounds but its the principle, the company knows that we would pay on time and on the right date.

BenS1

You might want to try reclaiming the money once the new template letters are posted up.

To me, it sounds like this is not the first time your OH has been overdrawn in the last few months. HSBC ussually reverse the charge if it's the first charge you have had in a 6 month period IIRC.

In future, you should control your method of payment to the housing company. I don't see why not use pre-dated cheque when they can take the rent payments. It would prevent this sort of thing from happening, best I could say is complain to the housing company.

Premier_2

aard1vark wrote: »

Hello there, my first post here but I'vejust had a really informative browse thanks:beer:

The situation is
Me and my girlfriend at are university, we both live in the same flat and both bank with HSBC, and both the same normal saver account with no overdraft function. The housing company takes our rent via direct debit in 3 installs in line with out loan that comes through (Sept, Jan, April).

However this term they have decided to take our rent out before we get our loans, resulting in going overdrawn and being charged. Mine for some reason was automatically reversed so HSBC didn't charge me. When my girlfirend tries to reverse it over the phone they tell her there's nothing they can do and they will charge her 25 pounds for the curtesy!

Can she claim it back from the bank, or should she seek to claim it from the housing company? I know its only 25 pounds but its the principle, the company knows that we would pay on time and on the right date.

You should have been given advance notice of the date the housing comapny were to collect payment by DD.

If you didn't get this, you can claim the immediate repayment of any money taken, as well as making an indemnity claim regarding any consequential losses (i.e. bank charges)
Contact your own bank and get them to raise the necessary claims.
Consequential losses are not usually repaid immediately, but when the bank gets the money from the Originator (i.e. housing company)

Under the terms of the DD scheme, you should not be making any claim direct to the housing company.
The failure of a DD payment (or claim for it's return) obviously doesn't negate the fact you still owe the money to the housing company for rent.

aard1vark

Premier wrote: »

You should have been given advance notice of the date the housing comapny were to collect payment by DD.

If you didn't get this, you can claim the immediate repayment of any money taken, as well as making an indemnity claim regarding any consequential losses (i.e. bank charges)
Contact your own bank and get them to raise the necessary claims.
Consequential losses are not usually repaid immediately, but when the bank gets the money from the Originator (i.e. housing company)

Under the terms of the DD scheme, you should not be making any claim direct to the housing company.
The failure of a DD payment (or claim for it's return) obviously doesn't negate the fact you still owe the money to the housing company for rent.

Thanks for the quick replies guys. As far as we can remember neither of us have been overdrawn on this account before so its odd why different things happened to both of us. I know I have to pay the rent, i have a letter with the direct debit dates on, they debited us today the 11th and it says the 18th on the letter they sent us. So if we get in contact with the bank we should be able to sort it?

Premier_2

aard1vark wrote: »

Thanks for the quick replies guys. As far as we can remember neither of us have been overdrawn on this account before so its odd why different things happened to both of us. I know I have to pay the rent, i have a letter with the direct debit dates on, they debited us today the 11th and it says the 18th on the letter they sent us. So if we get in contact with the bank we should be able to sort it?

Definitely. If the Advance notice says the amount will be collected on the 18th, they are not allowed to collect (or attempt to collect) on the 11th.

Get your g/f to go to her bank and insist on an immediate and full reimbursement of the amount collected under the terms of the DD guarantee, and also get her to make her bank to issue a consequential loss indemnity claim on her behalf against the originator.

My experience is that most bank staff often have no clue as to how the DD scheme works (apart from the common day to day transactions). If that happens to you/your g/f, just keep taking the matter higher within the bank until it reasches someone who actually does understand the Rules of the Direct Debit Scheme in full.