Co-Op Basic Account - They gonna pay a reg bill and let me go overdrawn? Legal? ASAP

InsideInsurance

A CPA debit card payment can be declined by the bank if there are insufficient funds/ credit. It is a discretionary decision of the bank if they will allow you to go into an unauthorised overdraft or not.

Obviously if they give you an unauthorised overdraft there is a fee to be paid.

At the same time however if they bounce the payment then there is also a fee for you to pay to the bank but you may also have to pay the merchant for the bounced payment - so not paying can be more expensive to the customer than paying it.

Which banks do what does vary, Barclays certainly are more likely to bounce and charge you to bounce rather than Natwest which is much more likely to pay and charge you for the o/d

YorkshireBoy

david39 wrote: »

In which case, if the OP doesn't put any more money into the account, at what point does the bank actually refuse to make further payments?

Co-op have a '3 strikes and you're out' policy on their basic account.

I suspect in such a case they'll then refuse all attempts to collect the card payment, leaving the OP at the mercy of possible legal action from the supplier...culminating in a CCJ?

OP will be asking why they can't do that now?...The answer from the Co-op will be that they're trying to be sympathetic to the OP's needs this month and hope things recover for next month?

TMO

david39 wrote: »

This is an interesting point.

The concensus is that the bank have to make the payment under their terms of Continuous Payment Authority.

In which case, if the OP doesn't put any more money into the account, at what point does the bank actually refuse to make further payments?

It clearly cannot go on making more and more payments for ever, because the OP, having failed with one, is likely to fail on further ones and could reach a point where he has no ability to repay the bank itself let alone the company trying to collect.

Having already told the OP that it must make the payment and has no ability to stop it, there must be a fall-back position for the bank to actually do so, so why is it able to do so when it (the bank) needs to and not when the customer requests it?

Exactly the point I am trying to make. I have a few bills over the next few days which are due to be taken from my account. Must be a total of £500. Due to unexpected expenses I will not be able to pay them, so does it mean I will go £500 DR? and if so, how does the bank expect me to repay this sum and when by? Even though I have to be honest only granted them permission to allow payments to be taken from my account if I have funds, which I do not. So how irresponsible is this of them?

Also in their T/C for Co-Op cashminder account it states;

5. Electronic Payments out of your Account
5.1 We will make a payment out of your account if:
• you authorise us in accordance with these conditions
• there is available money in your account by way of cleared funds.

7.6 If you want to cancel a regular card payment from your account tell
us, but you must also tell the person or organisation that collects
the payment that you have cancelled it. You may not be able to
cancel any particular payment after the time of receipt of the
payment instruction.

I asked them to cancel, she refused and told me I would get a fine, however term below states I could not get fined?

8. Our Right to refuse to make a payment
• you do not have available money (by way of cleared funds or
formal overdraft) in your account at 9pm the business day before
to cover payments. We may consider any due payments made,
agreed or authorised from your account regardless of whether or
not they have yet been deducted

13. Overdraft Services
13.1 We do not offer formal overdraft services on this account but if
you request a payment where you do not have sufficient funds
available on your account and our systems allow it to be paid we
will not charge you even if the payment causes you to overdraw
your account. If we do not make the payment we can charge you an
unpaid item fee. Details can be found in our account charges leaflet.

TMO

HoneyAndLemon wrote: »

Excuse me, but we all have lives. However not all of us spend beyond our means, and then expect the bank to look after it all for us. Take some responsibility. The bank aren't there to babysit your bank account.

Actually they are there to babysit my account.

TMO

Chrisblue1962 wrote: »

I think the words "cake" and "eat it" apply here .

A Basic account means people have access to banking facilities without further credit, which includes overdraft facilities.

A overdraft facility is not a universal human right, it is a facility granted at the discretion of the bank. A basic bank account does not have an overdraft facility , therefore YOU should not have made financial commitments which you knew or know now you cannot honour / fund with the basic account.

Before I get slated for pointing out these pertinent facts, I'm on a DMP, I (not anyone else ) owe about £18,000 and I (not anyone else) is paying it back bit by bit. I sympathise with somebody who errs financially but draw the line at downright stupidity...

Therefore MY bank should REFUSE any payments I have NO funds FOR.

TMO

MonkeyMad wrote: »

Unless the advice isn't what I want to hear.

I am open to all advice, I just do not like being attacked by lonely trolls.

TMO

YorkshireBoy wrote: »

Co-op have a '3 strikes and you're out' policy on their basic account.

I suspect in such a case they'll then refuse all attempts to collect the card payment, leaving the OP at the mercy of possible legal action from the supplier...culminating in a CCJ?

OP will be asking why they can't do that now?...The answer from the Co-op will be that they're trying to be sympathetic to the OP's needs this month and hope things recover for next month?

Wow CCJ. Getting ahead are we? This is not a council tax bill I am talking about. I already have 1 strike, they OD me for around £40 last month, I guess if they pay the £190 tomorrow and the £300 on monday then that is the 3 strikes. If they do that, I hope they will take a payment plan as I cannot pay them that back all at once and I never asked them to OD me to pay that.

meer53

TMO wrote: »

Therefore MY bank should REFUSE any payments I have NO funds FOR.

You should be speaking (SHOUTING) to the company taking the money, not your bank, they're the only ones who can help you.

TMO

meer53 wrote: »

You should be speaking (SHOUTING) to the company taking the money, not your bank, they're the only ones who can help you.

I don't want to tell them right now, it will cause more issues. I will let them find out themselfs, hopefully I can get onto a repayment plan. I mean I can pay my bills, I have a job, I just needed some extra bills to pay but over next 2-3 months I can clear everything. I just wanted the co-op to be on my side and not get me in more trouble, which they will if they pay those bills and it will also get co-op to close my bank account.

TMO

Actually come to think of it, I think it would be better if it went through and co-op did an unauthorised DR on me. It would not be worse then what interest the company who I owe it to would charge me.