overdrawn because dd taken before due date

maypole

I arranged for money to be transferred by dd from my current account to a bradford and bingley esaver account on Monday 11th December.

Today, 10th December, I was going to transfer money from an online account into my current account to cover the dd. It is an immediate transaction as it is within the same bank. HOWEVER, when I went to do this, the dd had already been done and my account is overdrawn by a very substantial amount. I immediately transferred the money into my current account to correct this. I emailed Bradford and Bingley to inform them of this situation.

Why would they take the money a day early? I have now got a DR on my account that I have never had before!

dunstonh

Monday transactions often appear on Sunday as they show first thing in the morning. Saturday and Sunday are not working days but on a Sunday you can see some automated payments that are going to go through on Monday.

Nothing to be concerned about. However, next time you should make sure the funds are in place before the transaction.

maypole

Thanks for your replies, I logged into the bank today to put the funds in place! I didn't know the practice at weekends! I am worried now, that they will charge me for being overdrawn even though I put the funds inplace almost immediately after. Of course I will dispute it if they do.

Who is responsible, the bank taking the dd or the bank where the funds are coming from?

gt94sss2

You don't say which bank it is, but some also state in their T&C that you have to have sufficient cleared funds in your account the working day before any payment is due to come out.

Regards
Sunil

tom188

gt94sss2 wrote:

You don't say which bank it is, but some also state in their T&C that you have to have sufficient cleared funds in your account the working day before any payment is due to come out.

Regards
Sunil

A-L for example

Fait_accompli

I know this may not help you now, but just for future reference; always always always have the funds in your account the working day (i.e. before about 6pm) before funds are due to debit your account. Even if the cash is in the same bank it matters that it's in different accounts. This will avoid the hassle of charges, or the worry of being charged.

maypole

I was transferring from LLOYDS TSB to Bradford and bingley.

Because it was a substantial amount, £43,000, I didn't want to take it from the TSB online saver to put in the TSB current account until today Sunday 10 I assumed that would be soon enough as the transaction date was set for 11th December. Ah well, I will know better next time. However I will dispute any charge incurred.

Thanks everyone

maypole

Problem solved, the bank is not going to charge me for being overdrawn as it was not my fault and I put funds into the account immediately/

MarkyMarkD

maypole wrote:

Problem solved, the bank is not going to charge me for being overdrawn as it was not my fault and I put funds into the account immediately/

It was your fault and you are lucky in not being charged. You should have had the money in the account by close of business on Friday, as other posts have already indicated.

Lloyds TSB's current account charges page states:

Please make sure you have enough cleared money in your account at the close of business to cover any payments you have made (or cheques you have written) for the next day. We pay some cheques the same day as they are paid in.

This is a common condition for all (or almost all) banks.

maypole

Ok I accept responsibility. It will never happen again

Thank you all

dunstonh

Back in my banking days when i did lending, in this situation, the account holder would appear on a potential overdrawn list and you would typically give them until late in the day to get money in.

At times when the processing was behind, the transaction that had been paid in wasnt on the system when the last check was made and sometimes items were bounced as the decision had to be made in time and processed. I am sure things are more efficient nowadays but then you also have less people doing all the jobs and being as careful as they once were.

Its just not worth the risk.