Direct Debit Problem, anyone else?

amy.c_3

Hi

Just wondering if anyone else here has had this problem, and whether what my bank has done is actually ok. Basically my rent is due to come out tomorrow (8th - monday), but they actioned the DD on friday night/saturday morning, leaving me with a charge because i went over my overdraft. I can understand if my rent was due out today (Sunday), but monday is a working day, so i don't see why they thought it necessary to action the DD before then. Its never happened to me before, as all my other DDs have come out either on the day, or on the following monday if they were due out at the weekend. Like i said, monday is a working day so there's no reason as to why they would need to take it out after closing on Friday.

I can't really get my head around this one to be honest, so any advice would be appreciated.

blueberrypie

There have been several threads on this lately. The terms of your account will say that you must have the funds available at the close of business on the working day before the DD (or any other payment) is due to leave your account. In other words, if your DD is due to leave your account on Monday, you must have the funds in your account by close of business on Friday. Therefore it doesn't matter if your bank actioned the DD on Friday night, Saturday, Sunday or Monday.

Not all banks operate in this way, but quite a few do. It doesn't make sense in these days of Faster Payments and 24/7 on-line banking, but it's still the way it is for a lot of customers, so it's something you need to be aware of.

opinions4u

The bank doesn't determine the date a direct debit is paid.

The collecting company does.

Time to point the finger elsewhere on this one.

bev309

opinions4u wrote: »

The bank doesn't determine the date a direct debit is paid.

The collecting company does.

Time to point the finger elsewhere on this one.

I tend to disagree with this. I set up direct debits all the time in work, & we set a payment date where we actually apply for the money. 9 times out of 10 it doesn't leave the bank acct until about 2 days later than the day we take it, so it is the banks fault. The only time we will go in on a different date is if the day falls on a weekend or bank holiday, & we will go in on the first available working day AFTER the payment is due.

With Natwest my DD's always leave on the date they are supposed to - unless it is a Monday. I replied to a thread a while back where I had to have a DD reversed as it came out on a Saturday leaving me overdrawn & facing charges. Other people on here have said that this is the way Natwest have worked for years, but it was the first time I had ever encountered it. On the other hand, payments that are due to go in on a Monday show on your balance on the Saturday, so there's a good & bad side to it really!!

amy.c_3

funnily enough the bank in question is natwest! i've been with them for several years, but only used the account occasionally. now i've made it my main one (got sick to death of halifax), thus transferred all my DDs. this is the first time anything like this has happened, because with every other bank i've been with they've taken the DD on the day (even a monday) or after the weekend. I've never before encountered a situation where they take the money before a DD is due, especially if its due on a monday, which is a working day.

opinions4u - i disagree with this, because my rent previously came out of another account and for 3 years has been coming out either on the day, or after the weekend or a bank holiday. its just natwest that have done this. personally i see this as another ploy to get a charge out of you!

noh

If you look at the DD payment on your online banking screen what date is shown next to it?
If it is Mondays date then it hasn't been paid early.

bev309

noh wrote: »

If you look at the DD payment on your online banking screen what date is shown next to it?
If it is Mondays date then it hasn't been paid early.

It will say Mondays date, but the money is actually TAKEN & leaves the acct on the Saturday, so if you haven't got any money in, it will leave you overdrawn. I'm not sure if you have until close of business Monday to get the money into the acct to stop charges though.

willo65

amy.c wrote: »

funnily enough the bank in question is natwest! i've been with them for several years, but only used the account occasionally. now i've made it my main one (got sick to death of halifax), thus transferred all my DDs. this is the first time anything like this has happened, because with every other bank i've been with they've taken the DD on the day (even a monday) or after the weekend. I've never before encountered a situation where they take the money before a DD is due, especially if its due on a monday, which is a working day.

opinions4u - i disagree with this, because my rent previously came out of another account and for 3 years has been coming out either on the day, or after the weekend or a bank holiday. its just natwest that have done this. personally i see this as another ploy to get a charge out of you!

You won't get charged as long as funds credited to account by close of business monday if it is being paid and not bouncing or pay in and ensure item is paid by close of business.

stclair

With Natwest/RBS if a D/D leaves your account on saturday dated for monday.

If you pay money into your account by 14.30 you not be charged for go overdrawn.

stclair

amy.c wrote: »

funnily enough the bank in question is natwest! i've been with them for several years, but only used the account occasionally. now i've made it my main one (got sick to death of halifax), thus transferred all my DDs. this is the first time anything like this has happened, because with every other bank i've been with they've taken the DD on the day (even a monday) or after the weekend. I've never before encountered a situation where they take the money before a DD is due, especially if its due on a monday, which is a working day.

opinions4u - i disagree with this, because my rent previously came out of another account and for 3 years has been coming out either on the day, or after the weekend or a bank holiday. its just natwest that have done this. personally i see this as another ploy to get a charge out of you!

Its not a ploy you have until 14.30 to pay money into your account to avoid any such charges.

Most banks terms and conditions generally say the funds should be in the account by the close of business the day before, so really it should be in by close of business on friday ready for monday.

iereboy

Some banks give you till 3:30 on the day when the DD is coming out. ie LLoyds.