Direct Debit Problem, anyone else?

miss_missy

amy.c wrote: »

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.

hi
its fairly simple the money is taken and held so that the dd can be paid but you still earn interest on the money until it official goes on monday, this way you wont get a returned dd charge so it works in your favour, also remember you need to have the money for dd in your bank account the working day before they are due so for a monday the money must be in the account on friday, although natwest usually give you until 2.30 before they charge you.
you state above that you got a charge for going over your overdraft are you sure this is caused by the dd or is it because of something youve spent? then you state later that the fact they took the dd caused your card to be refused in tesco well no it would be the fact your over your overdraft that caused the card to be refused
i hate to say it but it sounds like you have more than just your rent dd to blame for your problems here
sorry if the above sounds harsh but youve gone over your overdraft you knew the dd would come out on monday anyway so when were you planning to pay money for that?

cottager

Only to confirm what others have said really... weekends don't exist for the Natwest system. After Friday comes Monday.

From early Saturday and all through a weekend you need to think "This is Monday morning" (or whatever the next working day is, in the case of a bank holiday). If you treat it that way, everything you see is absolutely correct. Therefore the available balance over a weekend will have the amount 'allocated' and deducted... because as far as the system's concerned it's Monday

In the same way, had any inward BACS payments been due today (salary for instance), this would also have shown all over the weekend, and increased your available balance.

As jonny mentioned, any items like this which have happened or are due to happen "today", debit or credit, are shown on a darker blue background... anything highlighted like this has not yet been through overnight processing, but is adjusted for in your available balance. From Mon-Fri "today" means today, but on Sat/Sun it means Monday

BTW a charge for an unpaid item or going O/D would never be taken instantly; so if in your first post you meant you were seeing an actual charge, it must be for something else over the past month or so. You will have been advised in advance, as detailed here:
http://www.natwest.com/personal/current-accounts/g6/rates-charges.ashx#charges

If we are going to debit any of the fees and charges set out in the table below from your account, we will give you not less than 14 days’ notice of how much we are going to debit and when.

bev309

Mikeyorks wrote: »

You can make it bold as much as you like ..... but I'm afraid you're still wrong. DDs go via BACs ...... and BACS has every weekend off ..... so it can't go anywhere until the Monday. It's pre-processed either in the Fri night Batch or during Sunday ...... and leaves in the early hours of Mon morning. Hence the Mon date on the transaction.

How can I be wrong if I have actually seen the money come off my available balance on the Saturday?
It may state that the payment date is the Monday, but the amount is taken from the available balance on the Saturday, so even if BACs has the 'weekend off' the money still isn't in my account.

noh

bev309 wrote: »

How can I be wrong if I have actually seen the money come off my available balance on the Saturday?
It may state that the payment date is the Monday, but the amount is taken from the available balance on the Saturday, so even if BACs has the 'weekend off' the money still isn't in my account.

The amount comes off your available balance on the Saturday.
The money remains in your account until Monday when it is transferred to the payee.

bev309

noh wrote: »

No
The money leaves the account on the date stated.
Saturday and Sunday are not working days no payments are made on those days (except those made using faster payments).

Well then something must be wrong here then, as the money did leave my account on the Saturday - I'm not saying the money was paid to the company it was owed to on that date, but the amount was certainly taken from my available balance. I can't see why you insist on telling me it doesn't when it clearly does - as confirmed by other posters?

Posted before reading Noh's last post BTW.

bev309

noh wrote: »

The amount comes off your available balance on the Saturday.
The money remains in your account until Monday when it is transferred to the payee.

Yes that is the point we are trying to make money is not available to spend - I think perhaps we have got wires crossed somewhere:)

Oh & just to add - when it happened to me it was on my old step account, so available balance & actual balance show as one & the same once the money has been 'put aside' shall we say?

glider3560

bev309 wrote: »

Yes that is the point we are trying to make money is not available to spend - I think perhaps we have got wires crossed somewhere:)

But if you spent the money and then the DD left your account Monday, you would be overdrawn. So how does it make any different that it leaves your account on Saturday? Surely this is beneficial as it gives you an early warning?

noh

bev309 wrote: »

Yes that is the point we are trying to make money is not available to spend - I think perhaps we have got wires crossed somewhere:)

Oh & just to add - when it happened to me it was on my old step account, so available balance & actual balance show as one & the same once the money has been 'put aside' shall we say?

No wires crossed here.
I know the money is not available to spend.
I know that it leaves your account on the Monday check your statements to confirm this.

As pointed out by glider3560 above this is to your benefit as it stops you spending it and potentially being charged.

miss_missy

bev309 wrote: »

How can I be wrong if I have actually seen the money come off my available balance on the Saturday?
It may state that the payment date is the Monday, but the amount is taken from the available balance on the Saturday, so even if BACs has the 'weekend off' the money still isn't in my account.

hi
i think everyone has now understood each others messages i do love how dd can cause so much confusion

just to add bev the money is still in your account you cant spend it, but its still there earning interest until it goes out on the monday

Mikeyorks

bev309 wrote: »

Well then something must be wrong here then, as the money did leave my account on the Saturday - I'm not saying the money was paid to the company it was owed to on that date, but the amount was certainly taken from my available balance. I can't see why you insist on telling me it doesn't when it clearly does - as confirmed by other posters?

It's no different to you authorising a Debit Card transaction. The money is removed from 'available' ...... but doesn't actually leave your account until the real debit is taken .... normally 24/48hrs later!
In the case of the DD ..... it's removed from available ..... but not actually removed from your account until the next working day ..... in this case the Monday. The DD is the clearer to understand .... as the transaction is dated the Monday!
In both the DC and DD cases ...... you continue to earn interest until the real debit takes place.