direct debit going out before wages paid

vicki_b

hi i have a direct debit coming out on friday for pet insurance but have no money in bank BUT i get paid on friday, can the bank take the direct debit OUT before i get paid leaving me overdrawn?

Carl31

overdrafts are charged by the day in general, so as you get paid and it goes out the same day, you wont be overdrawn

YorkshireBoy

Depends who you bank with. Some require cleared funds at close of business the previous bank working day.

If you're paid the same date each month why not shift the DD back a few days?

YorkshireBoy

Carl31 wrote: »

so as you get paid and it goes out the same day, you wont be overdrawn

That would be a very dangerous assumption. See post #3.

stclair

Carl31 wrote: »

overdrafts are charged by the day in general, so as you get paid and it goes out the same day, you wont be overdrawn

That is the case for Natwest and RBS however this policy does not apply to all banks.

Some banks require you to have cleared funds available the day before.

noh

vicki_b wrote: »

hi i have a direct debit coming out on friday for pet insurance but have no money in bank BUT i get paid on friday, can the bank take the direct debit OUT before i get paid leaving me overdrawn?

If you have an arranged overdraft facility then yes they will.
If you do not have an arranged overdraft then they are likely to treat it as an informal overdraft request which they will either allow or deny and depending on who you bank with, and the account you have, there may be a charge for doing so.

tagq2

Natwest recently sent me a long booklet containing their T&Cs, usage advice, charges. The "Helping you get the most" sub-booklet is fairly informative. Page 43 warns about DDs coming out the working day before they're due. Rules may vary for your bank.

Since you don't want an insurance DD returned unpaid, as it could affect your animal's cover (I've had that fun when one month they didn't collect - I chased the insurer to take my money as they were an otherwise excellent provider, paying out regularly for subcutaneous fluid therapy for CRF!), it's worth seeing if you can arrange an overdraft or put some cash in before Friday. Check whether your account comes with a small interest-free overdraft on request - e.g. my Natwest Current Plus offers a £100 buffer but you have to ask for it.

stclair

tagq2 wrote: »

Natwest recently sent me a long booklet containing their T&Cs, usage advice, charges. The "Helping you get the most" sub-booklet is fairly informative. Page 43 warns about DDs coming out the working day before they're due. Rules may vary for your bank.

Since you don't want an insurance DD returned unpaid, as it could affect your animal's cover (I've had that fun when one month they didn't collect - I chased the insurer to take my money as they were an otherwise excellent provider, paying out regularly for subcutaneous fluid therapy for CRF!), it's worth seeing if you can arrange an overdraft or put some cash in before Friday. Check whether your account comes with a small interest-free overdraft on request - e.g. my Natwest Current Plus offers a £100 buffer but you have to ask for it.

They tell you that but it isnt the case you have until 2.30pm on the day the DD debits your account to put your account into credit with cleared funds this has always been the case. Unless the DD debits the account on a Saturday then you have until Monday 2.30pm to pay the cleared funds into the account.

That was the purpose of introducing Act Now Alerts.

http://www.natwest.com/personal/online-banking/g1/alerts/act-now-alerts.ashx