Bank took standing order late

coldcazzie

CLAPTON wrote: »

always seems odd to me that so many people set up all their DDs for the first on the month rather than say 5th or so. (assuming salary goes in the last day of the previous month)

I am inclined to agree with this, the bulk of our DDs are set up to come out 2-4 days after payday, some as much as 8 days afterwards.

noh

Mine occur randomly throughout the month.
Council Tax and TV licence on the 1st the rest spread across the month.
My paydays have also changed through the years. My first job had different paydays depending on whether it was a 4 or 5 week pay period. Since then, with different jobs, it has been 12th, 24th and the last working day. Currently I don't have a full time job so paydays are irregular!

Gromitt

PeterDee wrote: »

Our best option is to do the standing order manually on the day I get paid.

Some companies who were meant to get payed at the end of December didn't get paid until the 3rd January, so DDs and SOs should never be setup at the beginning of the month. I normally use the 15th, so if something goes wrong, I always have time to transfer funds from another account to satisfy the payments (I normally get paid at the end of the month)

ALIBOBSY

Whilst the advice about direct debits being after payday etc etc are useful in the long run it doesn't help the OP now. As I read it they had a SO from one account to the current account set up for the 1st to cover direct debits due on or just after the 1st.

TBH I would expect all the banks to do what mine (rbs) does and all the dd's AND the so would show as pending on the saturday before with a payment date of the 3rd (first working day after). Why was the SO delayed an extra day?
Defo worth raising with the bank.

On a separate note we have an email alert set up so that if we are into the red so to speak we get an email and we have upto the end of the business day to transfer money in (NOT the day before as an other poster said) to avoid any bounced payments and charges.

Ali x

jennifernil

I would agree that everything set up for a particular date that was delayed by the BHs should still have happened on the same date in the end.

Was the SO from Lloyds to Lloyds? Does it normally go by FP? It seems FP can not yet be relied on in some cases.

I would be asking the bank why the SO was delayed.

But, as said, it is a good idea to leave a few days between money arriving and DDs going out. Most companies will let you alter the DD date to fit better with when you are paid.

PeterDee

My wife had a meeting at the bank, it is now resolved, they admitted that it was their fault, dont know why it went a day late, have agreed to refund any fees incurred as a result.

We are taking steps to ensure that it doesnt happen again from our perspective. This is the second time and they wouldnt admit it first time so am relieved they fessed up this time.

Thanks for the responses.

NFH

dreamypuma wrote: »

As suggested on an earlier post t he OP needs to plan their finances accordingly by having a buffer. As this may not be a affordable, maybe the OP should look at an agreed interest free over draft facility as a safety net.

Not true. The OP instructed Lloyds to pay a standing order on 1st of each month (or if a non-banking day, the next banking day). Lloyds failed to make the payment as instructed (it waited until 4th), so the OP has a valid complaint concerning the consequential losses as a result of the bank's error.

Mikeyorks

Not really correct. SOs do not work on weekends / Bank Holidays and they are Batch orientated even if they do go via FP. So relying on Lloyds to run Batch processes overnight on the Bank Holiday - for a critical payment - is rather silly. It would have been run overnight on the 3rd and credited on the 4th.

One suspects that the member of staff who admitted liability - doesn't know their processes. Or is basing it on their normal weekend processes - where they do run Batch late on a Sunday. Absolutely no guarantee they will mimic that on a BH.

SOs can't be relied upon for time critical processes. They take too much time off. Login and do it via FP - much safer.

NFH

Mikeyorks wrote: »

SOs can't be relied upon for time critical processes. They take too much time off. Login and do it via FP - much safer.

Standing orders go via FPS, but you talk about them as if they're separate.

Mikeyorks

That's because they are. If you initiate a payment online it's 'immediate' FP. If it's filed as an SO then they're batched and processed overnight - hence the problem the OP experienced.