Help! I think I've been robbed by A&L (£25 "paid item charge") !

scarlet74

Apologies if this has already been covered elsewhere (I did check).

Alliance & Leicester have levelled a £25 "paid item charge" for letting a payment through when I allegedly didn't have the funds to cover it - but I think they are completely out of order!

Last Saturday (30 June) in paid cash in over the counter at my local branch to cover a mortgage payment that was due to come out on 1 July. I checked online when I got home just in case, and the money was shown in the available balance, although hadn't shown up on the actual statement yet. I didn't worry, as the two are usually different anyway. So as far as I knew, I could withdraw that money straight away if I wanted to.

A couple of days later I saw that a £25 "paid item charge had been levelled on my account! I checked my online statement, which now showed my money going in on 2 July (but that wasn't a problem as I was still within my overdraft limit), followed by the £25 charge (still within my limit) and then the mortgage payment (STILL within my limit).

I phoned up to complain and was told that because the payments went in and out on the same day, the payemnt out would have gone trhough first and triggered the charge - but the statement clearly shows the deposit being credited first, and at no time am I shown going over my overdrafy limit. I was also told that money paid in on a Saturday does not clear until the next working day anyway, and that it says as much on the back of all my statements. But they are wrong!

It clearly states that money paid in over the counter is available on the same day and the only mention of Saturday/next working days is in relation to cheques clearing, and deposits made at a branch cash machine. I soon had a letter from a manager who had looked at the case and still refused to refund me - oh, and I'll soon be charged another £25 for going over my overdraft limit! Accoring to my statement, I never went over my limit. Whilst i think that most bank charges are wrong in principle anyway, sureley in this case hey are absolutely, completely wrong? I honestly feel like I've been robbed!

Thanks to anyone who's read this far (!) and especially if you think you can help!

alwaysonthego_2

can you give us more details

scarlet74

Sorry - I only submitted one line at first as I already typed the whole post out twice (!) and it disappeared when I went to submit! It should be updated now.

milkydrink

Offically direct debits come out about 4am in the morning. So you need the money in the bank they day BEFORE the DD.

scarlet74

That's the thing - I paid money in on the 30th (Saturday) for a DD that was due to come out on the 1st. As it turned out, everything went through on the 2nd (Monday) - but I'm wondering (a) if my deposit should have cleared in time, and (b) whether they were right to charge me as my statement never shows me to have gone over my limit.

YorkshireBoy

scarlet74 wrote: »

It clearly states that money paid in over the counter is available on the same day...

But only for withdrawing as cash.

From your T&C's (condition 26.6)...

If You pay in cash over the counter at any Alliance & Leicester branch or through the automated system at the Post Office®, the money will normally be available so that you can withdraw it on the same day. However, You must allow at least one clear Working Day from the time We receive the cash before You use it make any payment (such as Direct Debits, standing orders, bill payments or cheques).

So, the money you paid in on Saturday couldn't be used to make your mortgage payment until Tuesday 3/7/07.

Now if you'd had an overdraft (enough to cover the payment), you would not have incurred the charge because, like you say, you never actually went overdrawn. However, because Monday's payments are processed overnight Friday/Saturday, you didn't have enough money in your account.



http://www.alliance-leicester.co.uk/currentaccounts/ec03964.pdf

scarlet74

Thanks, YB. I can't really argue with that, I suppose. The thing is they kept referring to the terms on the back of my statement, which don't go into as much detail as that - so if I take it further I'll refer to those! It still seems completely backward, as the statement itself shows that I didn't actually go over my limit. Cheers for getting back to me so quickly!

YorkshireBoy

scarlet74 wrote: »

The thing is they kept referring to the terms on the back of my statement, which don't go into as much detail as that

The person you spoke to has probably never even seen the T&C's, let alone read them!

Look on the bright side though...if they'd refused the payment they'd have charged you a £34 failed transaction charge. Further, your mortgage company would have charged you a missed payment fee and possibly marked your credit file with a late payment marker.

The fact they paid it, rather than referred it, suggests your credit rating with the bank is OK. Why not ask for a small overdraft facility to protect you from future charges like this?

dizzykane

Hi Scarlet

I'm a very new boardie, so hello!

I read your post and it has struck a huge cord with me!

I have had lots of problems with A+L and their 'paying money into your account' policy, which seems to change whoever you are speaking to! I could fill this whole board with grumbles lol.

The first problem I had a couple of months ago, was that knowing I had a DD coming off the next day, I paid money into my account to cover it the day before at a post office. The money didnt credit my account until the day after the DD, so hence a paid item charge of £25.00 and an unauthorised overdraft charge of £25.00. When I phoned to query the charges, they said to me that when you pay money in at the PO it doesnt clear that day unless you use your debit card and put your pin number in. This is nonsense, the account I was using is a joint account and I don't even know the pin number for the card! I had done this several times before and no problem, the money cleared that day.

The second issue I have was just today. I have a DD coming off my own account tomorrow and no money to cover it. I have transferred money from our joint account to mine, but aparently this will not clear until Tuesday. I called Liverpool and the girl was actually quite helpful. She mentioned that if there was a PO opened today I could pay money in and that would cover it. No problem, I found a PO in Glasgow that is opened today. I called to double check with them and the next girl I got said that even if I done that they couldn't guarantee I wouldn't be charged . I asked if today was classed as a clearing day and she said yes. So, I challenged her saying that if today was a clearing day then why will me paying in cash not clear! It seems that me paying in cash will not clear today but the DD which it says on my statement is paid tomorrow will clear tonight at 12midnight. I'm so confused!

Fortunately for me, they seem to be quite helpful today and they have cancelled the DD and set up a payment for tomorrow which will be fine I will have the money to cover it.

I am very annoyed at A+L as their policies seem to change all the time. They have absolutely killed me with charges over the past few years, and that is the reason why I'm on this site to get (hopefully) some of the charges back. A couple of years ago I moved house and had to get used to a joint account alongside my own, transferring money etc and I was not very good at it! They were regularly helping themselves to over £100 each month for paid items and overdraft charges and I think I've had enough! I understand that it is my responsibility to look after my account and make sure everything is OK, but I think that £50.00 for the pleasure of them paying a DD of £22.00 is more than daylight robbery.

Anyway, I hope this huge moan helps!

Diz
x

Dylanwing

Regardless of T&C's, this is the type of charge that is morally wrong and should not be taken. Personally I would take it further and ask them to justify, in writing, why they are not honouring the bit about cash being available on the same day.

Good luck!

dunstonh

Saturday is not a clearing day anyway so its impossible to have the money paid into your account that day. You may get it in the branch but it wont go into the accout until monday (or Tuesday, if bank holiday). Saturday and Monday are really the same day in banking terms.