Timing of bank charges

MissSkint_2

Hi everyone.

Sorry if this has been done before, but I'm looking for advice on how to deal with my bank's timing of it's charges.

I'm a stay at home mother, my income comes in the form of a transfer from my partner's account to mine on the 1st of every month as he gets paid on 28th.

I've been stuck into my overdraft for a few months as my bank (HSBC) sees fit to apply charges on 30th of each month - which is before any money is credited to me.

This means that even as soon as my money goes in, I am already well overdrawn, and by the end of the month I am almost twice over my limit (sometimes DDs are returned unpaid, but I notice the bank honours the charges it applys for itself with no problem). Increasing my limit would not help, as that would equal my monthly income so I would still be constantly overdrawn.

I received a statement today that tells me that on 30.09.12, I can look forward to having £150 taken from an account that is £165 over my limit. Once this charge has been applied I will have less than £200 to cover everything for the whole of the month, so I'll be guaranteed to go O/D over and over again, with each month getting worse.

Looks like I'm going to have to avoid visiting the cash point for the next 6 weeks, and take the kids around to my mothers every night so they can look hungry at her....that should make the food in the freezer last a bit longer

I know it's my own fault for getting overdrawn in the first place, but do I stand any chance of the bank waiting until my account is in the black before taking out it's charges?

Thanks

lolavix

I wouldn't have thought so as they are automated. Have you called them to explain the situation? They may be able to waive an charges until the overdraft is back within the limit.

philhoward

If you don't ask them, then you'll never know? I'm guessing their charges date is set out in the T&C's of the account (somewhere) but it can't hurt asking them as unless they really are money grabbing so-and-sos, then its in their interest to help customers (we are still customers at the end of the day).

YorkshireBoy

MissSkint wrote: »

I'm a stay at home mother, my income comes in the form of a transfer from my partner's account to mine on the 1st of every month as he gets paid on 28th.

I've been stuck into my overdraft for a few months as my bank (HSBC) sees fit to apply charges on 30th of each month - which is before any money is credited to me.

Forgive me for stating the blindingly obvious, but why doesn't your partner transfer the money to you on the 28th (or 29th)?

Or aren't they aware of the extent of your problems?

EJG1982

hiya miss skint
its a horrible rut and ive been there chasing my tail with over drafts and charges. i would say the best bet is to speak to your bank, ideally your local one who holds the account, set up a meeting with an advisor. person to person is so much easier than a call center. it doesnt even need to be over the counter/kiosk thing, get a proper meeting arranged and just chat with them.

increasing your o/d might be an idea if it can be done over what you receive as this way it will prevent any 'over your overdraft charges', could be short term until your past the charges.

what about receiving cash payment on the 28th and getting it straight in your account the same day, again this could be a short term measure for couple of months until your clear of the charges?

as also mentioned by yorkshire boy bringing the payment date forward may help, some transfers show the same day, well they do on my natwest ones anyway

im sure theres help with the bank though, especially if your honest with them, at the end of the day they're doing themselves no favours charging you if you cant pay

keep us posted how you get on and good luck

innovate

MissSkint, please take the good advice from YB etc on here, then go over to the Debt Free Wannabe board and ask for their help with a review of your SOA.

You obviously have to get on top of that overdraft spiral, but I don't think you can achieve this with just a change of the date when your account it credited. You either need to get more money, or you need to spend less. The Debt Free Wannabes are an incredibly helpful bunch of people, try them.

MissSkint_2

Thanks for all your replies - some good advice here.

Yorkshire Boy - the Mr and myself are at a loss as to why we thought the few day's difference was useful. He has agreed to speak to his bank to change the transfer date. I'm sure he would have agreed to this if I'd asked sooner, but I seem to have some kind of money phobia and I get scared to mention this kind of thing to him. Don't know why I'm like that, but it's very embarrassing to have to admit it.

EJG1982 - I will be speaking to my bank to see what can be done. See my comment above regarding The Fear for an explanation of why I haven't done it sooner.

Innovate - I will give that board a look-see. And your advice re getting more money or spending less is an aim I've been striving towards all my life. But I'll keep on trying!

Thanks again x