A&L charge- Allowed?

sloughflint

I've just checked my statement and have been charged £25.
I can only assume it's for paying a large cheque ( over £4k). Wanting to maximise interest earnt, I left the funds in the online saver until the exact day the cheque was due as the current account offers negligible interest on funds over £2500. The account has never been overdrawn.
Surely this can't be right. Have sent a secure message but if any of you guys can shed light first on what's happened, I'd be grateful.
If the charge is correct, I've wiped half the refer a friend money in one go. Not happy.

oldfella

money needs to be in the account the day before it is withdrawn by cheque or direct debit

Mike

sloughflint

Thanks.
Completely different to Nationwide or Lloyds then. I'll revert back to them when the year is up. Still I suppose I'm still £25 up thanks to the £50 refer a friend and the regular saver was worth having.
Hope no-one else gets caught out like me.

Voyager2002

Telephone them, ask for an explanation, and politely dispute the charge. Since this is a 'fist offence' and after all the money was with them all the time, and was in your account on the day the chque was due, they may well be lenient to you.

YorkshireBoy

sloughflint wrote:

Completely different to Nationwide or Lloyds then.

Er, no!...

From the Nationwide online payments & transfers area...

Cash credits (including ATM deposits) and transfers to cover an outgoing cheque or Direct Debit must be made before midnight on the working day before the payment is due. If the payment is due on a Monday, the transfer must be made by 9.00 p.m. on Sunday.

I'll revert back to them when the year is up.

I think you'll find they're all the same. Unless you have transferred funds (internally) the day before, or you have a 'direct credit' coming in on the day, and you do not have a sufficiently large enough overdraft to cover the outgoing payment - you will be charged.

DawnW

If you ring and explain that you made a mistake etc, that you had never been charged previously, they will most likely refund the charge as a 'gesture of goodwill' (they did for me). I investigated when I did a similar thing, and most banks' t&cs do seem to be similar on this one. I put it down to experience, shan't make the mistake again - but they did refund the charge! Fair enough, really.

sloughflint

They did remove the charge.
I could have sworn that I haven't had this with my other two accounts but it's in black and white in post no 5.

YorkshireBoy

sloughflint wrote:

They did remove the charge.
I could have sworn that I haven't had this with my other two accounts but it's in black and white in post no 5.

Hi sloughflint,

What confuses a lot of people is that as long as the outgoing payment doesn't take them over their overdraft limit, then they can 'cover it' with their overdraft until a cash or other deposit, ie internal transfer, is made the same day.

The net result is that when they do the 'round up' at the end of the day, you will be in credit (although your statement may show an overdrawn status 'technically' occurred due to the order they post the transactions).

Well done on getting the charge refunded.