Changing the way banks work

beelywoker

Martin,

I just wondered (with all the good work you've done in the past changing policies) if you ever plan to lobby to get banks acting fairer towards customers?

I have just been charged £8 for having a standing order bounce.

I set up a standing order for (Saturday) 29th September for £100 to go from Co-op to Barclays. I had another standing order of £550 coming out of Barclays on (Monday) 1st.

The £550 bounced because they said the £550 came out first thing on Monday. However the £100 doesn't get put into the bank on 29th because it's a Saturday, therefore was put into the account on the Monday ... after the £550 was taken out.

Basically they said if I wanted to pay a standing order on the Monday, I should of had cleared funds in my account on the Friday, as they don't work on Saturdays (although they happily take money out on a Saturday!)

It seems the way banks work is always to take money out first, then put it in after, always working against your favour.

I know this is the way banks are, and always have been ... but wondered with the power of MSN we can get this changed, so they act for customers not again them!?!

Thanks, Sarah

Wywth

beelywoker wrote: »

Martin,

I just wondered (with all the good work you've done in the past changing policies) if you ever plan to lobby to get banks acting fairer towards customers?

I have just been charged £8 for having a standing order bounce.

I set up a standing order for (Saturday) 29th September for £100 to go from Co-op to Barclays. I had another standing order of £550 coming out of Barclays on (Monday) 1st.

The £550 bounced because they said the £550 came out first thing on Monday. However the £100 doesn't get put into the bank on 29th because it's a Saturday, therefore was put into the account on the Monday ... after the £550 was taken out.

Basically they said if I wanted to pay a standing order on the Monday, I should of had cleared funds in my account on the Friday, as they don't work on Saturdays (although they happily take money out on a Saturday!)

It seems the way banks work is always to take money out first, then put it in after, always working against your favour.

I know this is the way banks are, and always have been ... but wondered with the power of MSN we can get this changed, so they act for customers not again them!?!

Thanks, Sarah

How were Barclays to know that a payment was due in later that day from the Co-Op at the time they processed your standing order for a payment to go out on 1st Oct?

This is quite easy for you to resolve. Set up the standing order from the Co-Op to arrive at Barclays the business day before you want Barclays to pay a standing order. You can do this by changing the date of either the Co-Op or Barclays standing order as appropriate.

(Btw, I bank with Lloyds and when I withdraw cash from them using an ATM on a Saturday, it shows on my account as a transaction on the next business day, usually the Monday)

If this is your first occurrence, you could ask the bank nicely if they would refund the charge; most banks will for a 'first offence'

dunstonh

Basically they said if I wanted to pay a standing order on the Monday, I should of had cleared funds in my account on the Friday, as they don't work on Saturdays (although they happily take money out on a Saturday!)

Their response is logical and fairly standard across the board. You should have money in the account the day before. If you risk the same day then you are taking a chance if the decision to bounce is made prior to the funds actually arriving in the account.

It seems the way banks work is always to take money out first, then put it in after, always working against your favour.

The method of accounting has been that way for hundreds of years.

but wondered with the power of MSN we can get this changed, so they act for customers not again them!?!

Not sure what Microsoft will do to help you. However, as the bank has done nothing wrong and it is your own failing here that caused it, I cant see how anything can be changed. You are effectively asking the bank to have a crystal ball which tells them what may or may not arrive after a payment has gone out.

Your biggest problem is that transactions get processed at different points in the day. Not that debits are processed before credits.

jamesd

The other way to resolve this is to seek an overdraft facility large enough to cover the intraday transactions.