Direct debit help

biz89

I've recently been charged for not having a payment ready for a direct debit.

The Insurance companies handler charged me £30 for not having the funds in my account at the time they asked for it 00:01 on the day it was due. At the start of business that same day I deposited the money to cover the DD. As it wasn't there at the time they asked for it, but was there on the day they asked for it, are they allowed to charge?

My bank were also going to charge me but after a phone call waived it for me but this other company wont. Please help. Thanks.

meer53

The best way to avoid this happening again is to make sure that you have the money in the account the working day before the DD is due to be taken. Because the money wasn't there then they will be allowed to charge you, at least the bank have cancelled their charge.

fluffnutter

I was always of the belief that each day's credits were applied to an account before each day's debits. Therefore, provided you paid in money (which clears immediately, e.g. cash) that day then you'd be covered. Many people still work on this assumption.

I've a feeling that digital, 24 banking has done away with all that and companies requesting money at (as in your example) 00:01 will withdraw it at that time. I think this is crap. Get your bank to reimburse you. It's their rubbish poorly advertised processing orders that have screwed you.

pimento

fluffnutter wrote: »

I was always of the belief that each day's credits were applied to an account before each day's debits. Therefore, provided you paid in money (which clears immediately, e.g. cash) that day then you'd be covered. Many people still work on this assumption.

This is not the case and is the reason I left Smile and moved to First Direct.

Smile were taking my mortgage payment out on the 15th and I wa spaid on the 15th but they were taking the mortgage first, then applying my salary meaning that often, it cost me £25 because I had gone over my overdraft limit.

Embarrassingly, it took me a few months to twig and when I questioned it they couldn't have cared less. So I moved my account (and changed my mortgage payment date to the 16th).

bris

I have sympathy with the op here. I always though you had until the end of banking hours for the money to be in, it has worked this way for me on a few occassions.

biz89

Thank you all for your help and advice, you're very kind.

Frustrated 123 hmmmm name seems to fit the attitude. Let me give you some free advice pal. Treat others as you would want them to treat you. Happy Christmas

unholyangel

fluffnutter wrote: »

I was always of the belief that each day's credits were applied to an account before each day's debits. Therefore, provided you paid in money (which clears immediately, e.g. cash) that day then you'd be covered. Many people still work on this assumption.

I've a feeling that digital, 24 banking has done away with all that and companies requesting money at (as in your example) 00:01 will withdraw it at that time. I think this is crap. Get your bank to reimburse you. It's their rubbish poorly advertised processing orders that have screwed you.

Perhaps just down to the individuals bank in question?

I know my bank operates like that. Providing the money is deposited before the close of business, they wont charge and the payment will be made.