Bank took standing order late

NFH

Mikeyorks wrote: »

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.

No, that doesn't explain the problem the OP experienced. If it was batched overnight, then that "overnight" period would be from close of business on Friday 30th December until start of business on Tuesday 3rd January. The payment should have been made on and with a value date of Tuesday 3rd January. Nothing said so far in this thread accounts for why Lloyds delayed the payment until Wednesday 4th January.

Mikeyorks

Lloyds / Halifax don't preprocess payments due over a weekend / Bank Holiday. Just as, in the same way, they don't give you advance credit for BACS Direct Credits due to be credited on the first working day after the break.

So it does indeed fully explain the problem

NFH

Mikeyorks wrote: »

Lloyds / Halifax don't preprocess payments due over a weekend / Bank Holiday. Just as, in the same way, they don't give you advance credit for BACS Direct Credits due to be credited on the first working day after the break.

So it does indeed fully explain the problem

No, it doesn't. Why didn't they make the payment on 3rd January? This was the first banking day after the scheduled payment date of 1st January?

jamesd

PeterDee, glad you got a good resolution from the bank.

I do think that you're cutting the timings a bit fine though - even though they were just sufficient, it's good to allow a bit more safety margin because we can have this sequence:

1st on Saturday
2nd Sunday
3rd Bank Holiday for 1st
4th the day the money goes in from a pay SO on the 30th or 31st.
5th the first day DDs can use the money from the 4th

I use the 7th because that's adding a couple of days for me to be able to fix any glitches. I do have an SO set up from my pay the day that's due to come in, covered by an overdraft facility in case there's a glitch with that arrival.

You might also want to see whether you can get an overdraft facility on the bill payment account that's sufficient to cover all of the bills to buy you a bit more safety margin.

If you haven't done it yet you may also want to ask the bank to contact the intended recipients of the DD to let them know that it was a bank error and ask them to reflect that in their reporting to credit reference agencies. Else you may have some late payment markers left on your credit report(s).

NFH

jamesd wrote: »

You might also want to see whether you can get an overdraft facility on the bill payment account that's sufficient to cover all of the bills to buy you a bit more safety margin.

Similarly to the OP, I have a separate accounts for direct debits, just to prevent DD payees from having access to main accounts, and I deliberately told my bank to remove any overdraft facility on it. If my bank had failed to pay a standing order into my direct debits account, I would be furious. The OP has every right to complain to Lloyds for not following his instructions and to ask for consequential losses to be reimbursed.

YorkshireBoy

NFH wrote: »

Why didn't they make the payment on 3rd January? This was the first banking day after the scheduled payment date of 1st January?

They may argue the new 'Payment Services Directive' actually allows them to make it the next day, ie D+1?

Mikeyorks

NFH wrote: »

No, it doesn't. Why didn't they make the payment on 3rd January? This was the first banking day after the scheduled payment date of 1st January?

Because - for the 2nd time - SOs are processed overnight. So they clearly - (again for the 2nd time) unlike Sundays - did not mount a night shift on the night of the Bank Holiday.

stclair

As Monday was a bank holiday would the payment not have been processed overnight on Tuesday to debit the account on Wednesday.

Mikeyorks

stclair wrote: »

As Monday was a bank holiday would the payment not have been processed overnight on Tuesday to debit the account on Wednesday.

Indeed that must have been the case. But as a lot of people appear to have no knowledge of how SOs work - it's difficult getting it across! Mention they go via FP - and everyone seems to assume 'immediate' version? Being unaware there are 3 distinct variants of FP.

To be fair - in this case. I am surprised Lloyds didn't process overnight on the 2nd - as they do on a Sunday. But it's clear they didn't as - from another thread - it's obvious they were catching up on some Debit Card transactions late afternoon of the 3rd.

NFH

stclair wrote: »

As Monday was a bank holiday would the payment not have been processed overnight on Tuesday to debit the account on Wednesday.

Then it was Lloyds' error, probably an error in their systems design or procedures. Lloyds should design its systems and procedures in such a way as to act correctly upon a customer's instructions.