Standing Order gone out early?

dreamdreamer

Can anyone advise me on what the hell has gone on below and where I stand? I'll try and keep this simple and short!

I have a standing order set up for the 1st of each month, to move £300 of my wage from my current account to my regular savings account, both with First Direct. My April 1st payment came out a day early and typically, this was the one month I didn't have the money in my account on the 31st to cover it due to some shuffling for the end of the financial year. Subsequently I went £55 overdrawn for approximately 24hrs when I have no overdraft facility on the account (by choice).

I wouldn't be fussed, FD certainly dont seem to be and haven't applied any charges etc, except that they've reported to my credit report that I'm £55 into an unauthorised overdraft :mad:, which isn't good as we're attempting to get a mortgage later this year.

I simply cannot work out why they've taken the payment early when the 1st was a working day. Do I have grounds for a complaint here and if so what is the likelihood of them amending my credit record? Should I do this by phone or in writing?

If I can't get it removed will this mark affect our mortgage application or is it considered a minor thing? We have otherwise 'clean' credit records.

Thanks for any advice,

Dreamer

gt94sss2

Call First Direct and ask them why it went early. Assuming it was an error, they should ask for any adverse data reported to the credit agencies be removed and it won't affect your mortgage application.

Regards
Sunil

Mr_Goodkat

Are you certain the standing order is set as a monthly instruction to go out on the 1st and not set as either the 30th/31st or at an interval other than monthly say every four weeks?


I have multiple current accounts with different banks / building societies and never known a standing order go out early it is either pushed on the day or the next banking day if the date falls at a weekend / bank holiday.


I suspect it is a set up error that you have now only noticed due to having no money in your account when it was sent?


If it is the banks error then raise a complaint and insist they remove the data from the CRA's.


Out of interest why have you chosen not to have an OD with FD? The £250 interest free OD is surely worth having?

dreamdreamer

I did call. It was set up wrong, for the 31st (by them), and they can't retrospectively change credit reporting apparently. Time for a strongly worded letter I feel.

I chose not have the overdraft because when I set up the account I was clearing down debt and didn't want the temptation of the overdraft when I was having to live so frugally. I might well take it out now, lesson learned!

YorkshireBoy

dreamdreamer wrote: »

I might well take it out now, lesson learned!

You may find they'll charge you (£25?) for a formal O/D request, because you made an informal request on the 31st March, ie within the last 6 months.


Either way, I'd be making a formal complaint on their poor admin.

Mr_Goodkat

dreamdreamer wrote: »

I did call. It was set up wrong, for the 31st (by them), and they can't retrospectively change credit reporting apparently. Time for a strongly worded letter I feel.

I chose not have the overdraft because when I set up the account I was clearing down debt and didn't want the temptation of the overdraft when I was having to live so frugally. I might well take it out now, lesson learned!

If they have admitted they set up the standing order for the wrong date and have therefore caused this issue then I am sure a strongly worded letter will get this resolved.


Data with the credit reference agencies can be updated so don't let them fob you off.


Understand your reasoning for no OD previously, may be worth you having one now or build up your own in credit reserve (although at 0% with FD that money could be put to better use elsewhere).

dreamdreamer

To be honest I usually sit with about a £500 'float' in my 1st account (ie. this much is left before payday) it was purely that I was doing some account shuffling that week for the end of the financial year that the balance was down at £250. I might take out the overdraft anyway though, just in case.

FD have said the date of account opening is the 31st and that's why they took it on that date, but my internet banking still says next payment is due on the 1st May, similarly it said next payment due on 1st April last month. So I think they may be fobbing me off. Anyway I'll write a letter with an FSA threat and I'm sure we'll reach a resolution!

YorkshireBoy

dreamdreamer wrote: »

Anyway I'll write a letter with an FSA threat and I'm sure we'll reach a resolution!

The FSA won't be interested (I don't think they even exist now, after being split into the FCA and PRA?). So perhaps better to "threaten" them with the FOS instead.

dreamdreamer

Oops haha good spot!

Aquamania

dreamdreamer wrote: »

Can anyone advise me on what the hell has gone on below and where I stand? I'll try and keep this simple and short!

I have a standing order set up for the 1st of each month, to move £300 of my wage from my current account to my regular savings account, both with First Direct. My April 1st payment came out a day early and typically, this was the one month I didn't have the money in my account on the 31st to cover it due to some shuffling for the end of the financial year. Subsequently I went £55 overdrawn for approximately 24hrs when I have no overdraft facility on the account (by choice).

I wouldn't be fussed, FD certainly dont seem to be and haven't applied any charges etc, except that they've reported to my credit report that I'm £55 into an unauthorised overdraft :mad:, which isn't good as we're attempting to get a mortgage later this year.

I simply cannot work out why they've taken the payment early when the 1st was a working day. Do I have grounds for a complaint here and if so what is the likelihood of them amending my credit record? Should I do this by phone or in writing?

If I can't get it removed will this mark affect our mortgage application or is it considered a minor thing? We have otherwise 'clean' credit records.

Thanks for any advice,

Dreamer

I know I am going to sound a bit like a cracked record on this, but the same advice holds:

If you ever see any transaction on your account you did not authoise, contact your bank as soon as possible.

You didn't authorise the payment that left on 31st, so inform the bank.

Your account should be returned to the position it would have been in had the erroneous transaction not have occurred.
Any adverse information passed to the CRA's as a direct result of this error should also be removed.
Chances are you should also get a small goodwill festure for their error, and the trouble and expense they have subsequently caused you.

Presumably the payment you authorised on 1st April did not leave your account either. So complaint number 2, as the opposite holds also.
i.e. if you do not see a transaction you did authorise on your account, then you should report that to the bank too ... but give that a few days from the date of intended transaction just in case it's still being processed

Aquamania

dreamdreamer wrote: »

To be honest I usually sit with about a £500 'float' in my 1st account (ie. this much is left before payday) it was purely that I was doing some account shuffling that week for the end of the financial year that the balance was down at £250. I might take out the overdraft anyway though, just in case.

FD have said the date of account opening is the 31st and that's why they took it on that date, but my internet banking still says next payment is due on the 1st May, similarly it said next payment due on 1st April last month. So I think they may be fobbing me off. Anyway I'll write a letter with an FSA threat and I'm sure we'll reach a resolution!

And my Mother In Law's Birthday is on the 18th, but I don't know what either has to do with the standing order you imply you set up to be paid on the 1st of each month. :huh:

Going by their reasoning, I guess there will be no payment going out this month as 31st April does not exist :cool: