MSE News: Payment failed on payday? Banks to give customers more time to avoid charge

"Seven high street giants have agreed to put payments through later in the day if they are rejected first time..."
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Payment failed on payday? Banks to give customers more time to avoid charges

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  • jonesMUFCforeverjonesMUFCforever Forumite
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    ........But in my opinion it is still a better idea for payments out of your account to be scheduled a few days AFTER payday.

    If there is a mistake with your wages it will not matter how many times a bank tries to put debits through - the money will not be there.
  • pqrdefpqrdef Forumite
    4.6K Posts
    I thought the banks were already doing this. Even the Co-op.

    But how does it work exactly? Suppose I've maxed out my overdraft limit and a DD comes in, and the bank is prepared to pay it as an unauthorised overdraft. Do they

    A pay it and charge
    B pay it, but not charge if the money arrives later in the day
    C wait until later, then pay it anyway?
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • JuicyJesusJuicyJesus Forumite
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    Option B, sort of. All that's changing is the banks involved are doing a second check later in the day to see if funds have been paid in. If they were going to pay it anyway, nothing will change but there will be no charge; if they were going to return it they'll pay it instead. Meanwhile, don't pay anything in and it'll either get paid or returned as before.

    The finer points of this, obviously, depend on the individual bank concerned, but that's a rough overview.
    urs sinserly,
    ~~joosy jeezus~~
  • RafterRafter Forumite
    3.8K Posts
    Ultimately this seems to be just legislating for common sense and ethical behaviour.....

    A bank will not be taking any credit risk or incurring any interest charges if, on the same day a customer receives money into their account sufficient to cover any outgoings.

    Customers need to be reasonable that a deposit arriving at 11pm is unreasonable, but banks need to wake up and smell the coffee that earning £200m a year in fees for providing no service and taking no risk is unacceptable!

    R.
    Smile :), it makes people wonder what you have been up to.
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