Bank ignoring the extra day in Feb

MarkyMarkD

Natty68 wrote: »

It should go out on the 1st of the next month if there is no 31st It won't be sent out earlier if it is SO. DD are a different matter entirely..I'm sure they are a law onto themselves..lol

No, DDs aren't "a law unto themselves". What happens with DDs depends what you agreed/were told when the DD was set up.

The obvious alternatives are collection on the next working day (as applies to SOs) or collection on the PRECEDING working day, which makes sense if the payment is due BY a particular date in each month.

Natty68

MarkyMarkD wrote: »

No, DDs aren't "a law unto themselves". What happens with DDs depends what you agreed/were told when the DD was set up.

The obvious alternatives are collection on the next working day (as applies to SOs) or collection on the PRECEDING working day, which makes sense if the payment is due BY a particular date in each month.

I was making a joke when I said DD's are a law unto themselves.. I do know what happens to DD's and SO's as my husband is a bank manager.

I was explaining to Jalexa what happened to SO's.

stclair

I had a sranding order set up on my account to leave on the 31st March however to date its still not left my account. I shall presume the standing order will not leave account now until 2 April.

Indigo72

Further to the original post, I have funds going into my Nationwide account on the last day of the month and my mortgage coming out on the 1st day of the next. At the end of March both these days fell on a weekend, which meant that both transactions only appeared in the account on 2 April (the first business day). Since Nationwide apply direct debits and standing orders first, there were not sufficient funds when the mortgage payment was taken off even though the ingoing funds applied later that day were sufficient. A pure timing issue, but the bank will apply a charge for this. Would/should the bank refund the charges?

MarkyMarkD

Would they? Maybe.

Should they? No. You are required to have funds in your account by the close of business on the working day before any payment is scheduled to leave your account. You didn't do so, as the funds didn't arrive until the SAME working day as the payment was scheduled to leave.

So, in short, you shouldn't schedule payments to leave on the first working day of the month if schedule payments to be received on the last calendar day.