Bank charged me in error and won't repay it

Roguester

Hi, I have a Barclays bank account.

At the start of the year, I went over the overdraft limit for my bank account and was charged for doing so. The statement, however, showed that I had not gone over the limit, because the payment I had made to a supermarket, did not appear on the statement until two days after I had made it. However, the bank said that because it was a 'guaranteed transaction' at the time I made the payment, there was a charge for it because at the time it was made, there was not enough money in my account.

Last month, I made two payments online. At the time of the payment, my account was within its limit and did not go over its overdraft limit. However, two days afterwards, some interest and account fees pushed my account over its limit. Then the online payments I had made showed on the statement the next day. The bank has said that because those payments went out after the account fees etc. I would be charged a guaranteed transation fee for them.

I said to the bank that this contradicts what they had previously told me and that it cannot be both the date on which a payment is made and the payment it appears on the statement that causes fees to be charged - how am I supposed to manage my money then? They told me that I knew in advance that fees were going out two days after I made those online payments and so they have to count the payments as having been made after the fees (which they weren't). Arguing with them that they were made on a previous working day had no effect.

Any ideas on what is correct, and if they are wrong, what should I do?

jalexa

Roguester wrote: »

Any ideas on what is correct, and if they are wrong, what should I do?

What is correct is whatever the account terms and conditions says on charges not the story the statement tells or what individual members of staff say. Hold them, if necessary by the Complaints process, to what the T&Cs say.

This is just speculation because I have not read the T&Cs but I would not be surprised if charges were levied on "available balance" which is different to statement balance.

dixon-bainbridge

As said above, check your T&Cs.

If you don't go over your limit though you will not get charged. So the first thing I would do is try to sort your finances out.

jonesMUFCforever

OP - did you have any uncleared effects on your account at any time?
ie cheques you paid in but not cleared - this might have made it look as if you did not exceed your limit when you did.

Roguester

I made two payments made on a Friday when my account was within its limit. These payments did not cause my account to go over its limit. The next Tuesday, the bank added account fees and interest. This pushed the account over its limit. The bank statement then showed the payments I had made on the Friday as occurring on the same day as the fees went out, but the bank listed them after the account fees and interest and therefore charged a 'guaranteed transaction' fee on each of them.

This contradicted a guaranteed transaction charge levied in January, in which the bank told me that they had charged me because the date on which I made the payment was when the charge was accrued, although when it showed on the statement two days after that, the account was within its limit again.

There were no other outstanding payments.

I think they cannot have it both ways - it is either one or the other.

opinions4u

Did you pay in after 3.30pm on the Friday?

MPH80

Your problem is the nature of the transactions being made.

Your supermarket payment was presumably made as a customer present transaction. This is performed as what is known as 'auth and settle'. This guarantees the payment at the time of card presentation. A further settlement file is then sent to the bank in batch a day or so later (2 days in your case).

The online payments are normally performed in 2 stages. Firstly as a 'pre auth' where the bank account is tested. Depending on the retailer online this may be for as little as £1. Once the order is dispatched, then the 'auth and settle' call will be made - this is the point of the 'guaranteed transaction' as you've been putting it (and the settlement file will be sent later).

So yes - the bank can have it both ways.

M.