Pending payments causing account overdrawn

LGMS

Hi, I really hope it's all working out for you today.

Shopping as a (very) small business (there's only two of us) we had this happen with Asda on three occasions, one time pushing us into the red. Santander waived the fee in relation to the error but we basically just had to wait for the 5 working day period to pass before we could access our money again.

We now no longer shop with Asda as it's too unreliable in this regard and we can't feasibly keep doubling the amount in this account just in case it should happen again. And anyway Tesco never has this problem.

I would agree with krisdorey that for the long term keeping two or more accounts is important to avoid this sort a thing - dodge a bullet so to speak.

Personally I keep several accounts - for payments due in, for billing, for purchasing on line, for rent and for savings. This keeps the money where I want it and as far out of harms way as far as is humanly possible (when you must use a banking facility.)

Granted it can be a fuss to set up initially - forms to fill in to redirect ChB for instance - and requires a bit more internal management - transferring between accounts, setting up payments etc (I do most of my banking online btw as I live in the countryside miles from any branch.)

If you can put yourself up to it, it's mucho worthwhile as I'm in control of my money and I'm much more aware of my spending, which is always a good thing

molerat

This seems to be a recurring problem with Asda home shopping, there has been numerous similar threads.

The moral of the story is that if you run your account close to the edge and do not have spare funds of at least twice the value of the shop available for a week do not home shop at Asda.

The problem the OP has is that the bank can not release the funds without the OK from Asda as they are the ones that have requested them and in theory Asda could collect on that retention. It is poor management by Asda and OP should vote with their feet.

Aquamania

molerat wrote: »

...The moral of the story is that if you run your account close to the edge and do not have spare funds of at least twice the value of the shop available for a week do not home shop at Asda.
...
It is poor management by Asda and OP should vote with their feet.

Although, of course, if the individual is as short of cash as you suggest, that person probably can't afford the luxury of shopping at other, more expensive supermarkets

dazzer1467

Aquamania wrote: »

Although, of course, if the individual is as short of cash as you suggest, that person probably can't afford the luxury of shopping at other, more expensive supermarkets

Thanks for the advice

Most of the time i am stuck because we although have 2 supermarkets where i live and 1 of them isnt a "superstore" so doesnt have much choice in the way of frozen things and the other is 45 minute walk away and i dont drive so once taxi's etc are worked in it doesnt work out any cheaper than having Asda deliver to our door,If i could afford to leave 2 amounts of "shopping" money in then i would but it looks like i will have to do as others (and change them a tiny bit) have suggested and have 1 account just for the shopping and transfer into the account the amount of the shop and nothing more,Then any other "pending" payments wont impact on other bills and i can allow the pending payment to drop off naturally.

once again thanks for the advice.

dazzer1467

Quick update - Literally just got off the phone to Asda,they sent the fax to Santander to drop the pending charges,Santander have released the payment,After a 52 minute phone call to Asda I talked/shouted my way to £10 off my next Asda shop,It will be the last time I use them and i will ensure there is only enough money in the account to cover the amount of the shopping (with a little bit extra for any offers that end between me placing it and "delivery" day)

Thank you to everyone who gave advice.

johns1952

I'm also having difficulty. I have a Nationwide account. When looking at the account online, I noticed that my available balance was £800 less than I thought it should be. I phoned Nationwide and asked why. I was told it was because I had made a purchase with Argos and they had reserved payment. However the transaction with Argos had already gone through my account and had been deducted from the actual balance. Apparently this reserve stays for 7 days. My concern is that if I had not had sufficient funds in my account, I would have incurred overdraft charges even though in reality there were sufficient funs in my account. Nationwide do not deny that I would have incurred charges. Very unfair!!!

grumbler

I don't think that you incur charges unless the transaction appears in the statement and affects the real (not available) balance.

That said, you can have your card declined if the available balance goes too far into the red.

jonesMUFCforever

johns1952 wrote: »

I'm also having difficulty. I have a Nationwide account. When looking at the account online, I noticed that my available balance was £800 less than I thought it should be. I phoned Nationwide and asked why. I was told it was because I had made a purchase with Argos and they had reserved payment. However the transaction with Argos had already gone through my account and had been deducted from the actual balance. Apparently this reserve stays for 7 days. My concern is that if I had not had sufficient funds in my account, I would have incurred overdraft charges even though in reality there were sufficient funs in my account. Nationwide do not deny that I would have incurred charges. Very unfair!!!

Use a credit card for any large transactions over £100 for S75 protection and if you pay off in full a free loan of up to 56 days.

anoncol

jonesMUFCforever wrote: »

Use a credit card for any large transactions over £100 for S75 protection and if you pay off in full a free loan of up to 56 days.

Which makes current account flow a lot easier to track.