Alliance & Leicester charging overdraft fees on pay day when the funds are available

linbin100

Has anyone had any problems with A&L charging them for withdrawing money on payday when their online banking states that the funds are available in their bank account? I was charged £5 last month for going overdrawn despite the fact that the money was in my account. It was not till I looked back a couple of days later that I saw I had been overdrawn till the next day. However at the time it showed the money I had taken out being deducted from the total of my pay!

When I contacted them they said that they advise their customers not to withdraw money on the day they get paid because sometimes the funds have not cleared! I think this is ludricous!

I could understand if the available balance was different from the actual balance and also it shouldn't let you transfer money if the funds arent available yet.

Just intrerested to find out if this has happened to anyone else, and also what they have been told by A&L?

I have had this account for 12 years and this has not happened before, does it happen with other banks?

Thanks in advance

daisy_jean

Hi!

I posted a little while ago about a similar situation - http://forums.moneysavingexpert.com/showthread.html?t=2314983&highlight=

However, I didn't get charged for this, and when I rang customer services got told as long as funds were showing as available I would be okay.

loveangel88

yep its happened to me...apparently its because you are supposed to wait til 12midday before your funds are 'cleared'....any transactions before 12 will go minus but then obviously rectify itself by end of working day...

i got charged £25 once when it happened, played hell with them and got charges back lol.
It doesnt help if you need D.Ds to go out same day as payday but hey!

Mrs_Ryan

I had this as well - they've never attempted to charge me or file late payments since I set FOS on them about it

mum26

Yes they charged me many a time for this and would not be reasoned with at all.

onlypaddy

A&L have the very annoying strategy of rearranging daily debits so that they appear before credits and take statements into overdraft.

that, coupled with their awful internet banking is why i've just high-talied it and left to go to first direct

shirtyman

onlypaddy wrote: »

A&L have the very annoying strategy of rearranging daily debits so that they appear before credits and take statements into overdraft.

that, coupled with their awful internet banking is why i've just high-talied it and left to go to first direct

onlypaddy you speak the truth!

You describe this very well. I got stung by this last month! The old debits out first before credits in. I seriously want to start keeping money in the mattress. The amount I've paid out in charges will be impossible to make back again with in-credit interest. Might as well dig a hole in the ground...

Except by not paying bills by DD you are charged a handling fee. Grrr...:eek:

blueberrypie

shirtyman wrote: »

I got stung by this last month! The old debits out first before credits in.

A&L terms & conditions say that funds for any payment must be in your account by the close of business on the previous day. That's why you see debits before credits - any credits made to your account today don't become available until tomorrow.

It's a stupid system, and it produces a conflict with Faster Payments, where the funds are supposed to be available within a couple of hours of being transferred, but it's how A&L works.