Lloyds charges for standing order payment not made.

Milarky

Can someone please link to the charging Lloyds uses for making a standing order when there are insufficient funds etc. I've briefly looked but I couldn't find the relevant document on their site.

In particular they didn't make regular payment on morning of 2nd due to the lack of a balance and no overdraft in place to cover. I spotted this, so added the funds and made a (manual) bill payment instead to the original destination later that morning. Lloyds then made a 'second' attempt at the standing order, but only on the following day, 3rd. The funds were sufficient this time. Notwithstanding that the required payment had been made in the meantime, wouldn't you expect them to not make a second attempt without first checking or to do so later on the scheduled date? This is why I want to refer to the terms and charges, because they are asking for £10 even though no payment was made promptly, and I'm not sure how any service was even attempted on 2nd.

(Thnx)

dr_adidas01

Its all in the rates and fees on the site, I think its £10.

http://www.lloydstsb.com/assets/media/pdfs/banking_charges_brochure.pdf

Milarky

dr_adidas01 wrote: »

Its all in the rates and fees on the site, I think its £10.

http://www.lloydstsb.com/assets/media/pdfs/banking_charges_brochure.pdf

Yes, it is £10. The issue is then about whether they also agree (as some banks now appear to) to attempt to represent the payment at any later point in the day? They actually held over the 'second' payment attempt for fully 24 hours.

Yet the account was 'in funds' by 2 or 3am anyway on Monday from an incoming standing order meant to cross this outgoing payment. Yes, I know that it's then '50-50' whether 'Bank A' gets the money before or after it separately attempts to send to 'Bank B' [note that this account was underfunded by an oversight and normally carries a sufficient balance at all times] but Lloyds also seems to pre-empt the am timing of other banks by sending its payments before midnight on a Sunday.

jonesMUFCforever

It is £10 they will then try again for up to 28 days to pay the standing order. You only get charged for non payment the once.
If it was me and funds were tight I would pay by faster payment and cancel the standing order - no charges for unpaids and you stay in control of payments.

pmduk

Have a look at the T&Cs for the account you have, many will specify when funds have to be in place for a DD to be taken. I believe there's a reference in the editorial pages which I'll try to find.

I've added the link, unfortunately it's a "woolly" article with few specifics.

Milarky

pmduk wrote: »

Have a look at the T&Cs for the account you have, many will specify when funds have to be in place for a DD to be taken. I believe there's a reference in the editorial pages which I'll try to find.

I've added the link, unfortunately it's a "woolly" article with few specifics.

It was not a DD but a Standing Order - they have control of those. The fact that there wasn't any payment made when I checked on Monday gave no clue to what would happen (the representation) the next day. From the statement, therefore there is no 'evidence' that they did anything (unlike a DD called and shown as returned.) Checking past order of payments the SO always go before monies received from the other side. Can't check this against the other bank (Nationwide) though since they reorder transactions (credits before debits) whatever the actual order was.

Joe_Bloggs

@Milarky

From the statement, therefore there is no 'evidence' that they did anything

If there is no evidence in your case then perhaps a Subject Access Request application is warranted. If that fails consider the United Nations as an arbiter. There is always the G20 as a fall-back arena.

Since Lloyd's Banking group is partially state owned, I suggest the populous should recognise Milarky's generosity in this matter of banking philanthropy.

J_B.

marlewuk

lloyds require the funds must be in the day before as the standing order is processed in the early hours of the due date via faster payment.
unfortunately like youve mentioned - it wont show on the account like a dd if it gets returned.
standing orders are set to your preferences - which you can amend as you choose as you are in control.
as mentioned in a previous post - maybe manual transfers would be better

YorkshireBoy

Seems to be 'standard procedure', according to a Lloyds spokesman here...

Lloyds Banking Group already applies a same-day retry process across its Lloyds TSB, Halifax and Bank of Scotland retail brands for direct debits, while a second attempt to take a standing order payment is currently made the next day, a spokesman said.

http://www.telegraph.co.uk/finance/personalfinance/10106500/Banks-to-retry-bounced-payments.html

...although as a customer I'd expect to be made aware of this.

Assume you're raising a complaint and hoping for a goodwill payment?


Some other useful info here, but it relates to 're-try' systems in general (mainly card payments and DDs)...

http://www.google.co.uk/#q=lloyds+standing+order+second+attempt

Milarky

Excellent as usual YB. Collect another star!

From the FCA: press release 7th June 2013

The new approach has been adopted by Barclays, The Co-operative, HSBC, Nationwide, RBS Group, Santander and National Australia Group (which owns Clydesdale and Yorkshire banks) and will improve the experience of everyday banking for millions of consumers.

Lloyds Banking Group currently operates a same day retry process on many of its transactions, but is updating its systems to ensure it is used for all transactions. Until this occurs customers will be able to claim a refund for related late payment charges..

Standing Order payments mentioned as part of the same voluntary agreement, so that's the line to adopt.