Direct Debits

missty25

Hi,

I've noticed that when the 1st day of the month is a Monday my direct debits which are dated 1st of the month are always taken out on the Sunday, is this standard practice.

On checking my bank yesterday noticed this had happened again, about £350 overdrawn due to money being taken out for direct debits, so transfered money to cover this balance(which I had already planned on doing yesterday).

What is the point of the Direct Debit Guarentee? Surely if the date is the 1st of the month the companies taking the money on the day before should not be allowed to do so, As I am starting to get a bit annoyed that my account is going overdrawn before I have transferred the money in IYSWIM. On the occasions this has happened I have transferred the money before 3pm, but according to Lloyds TSB if you don't transfer before 3pm you are likely to be charged for being overdrawn.

Sorry for long post but just wondered if anyone else has this problem.

Thanks

missty25

Just noticed post further down with most of the answers I'm looking for, but if I'm getting this right although I am overdrawn on the Sunday due to early Direct Debits I won't be charged as long as I transfer the money by 3PM on the Monday?

dzug1

It's common practice. It's not the companies - who have asked for the cash for Monday - but the way many banks operate

The DDs are not actually paid out on the Sunday, but 'reserved' to go out first thing Monday morning.

There have been several threads on this recently.

Paul_Herring

missty25 wrote: »

Just noticed post further down with most of the answers I'm looking for, but if I'm getting this right although I am overdrawn on the Sunday due to early Direct Debits I won't be charged as long as I transfer the money by 3PM on the Monday?

If the money is in your account by the end of the working day Monday, there shouldn't be a problem. The problems you risk by doing what you're doing is having the DD's bounce due to insufficient funds.

One of the answers you should have seen further down is that most banks request (but not all seem to require) that the money should be in your account the working day before the direct debit is due to come out.

That's generally Friday.

Or Thursday 1st April this year.