Bank Charge Query

SniperMonkey

Hi,

I have a query regarding overdrafts.

I purposely set my account up with no overdraft, dont want one ever.

Sometimes when I don't have the money in I get letters saying i've gone into an unarranged overdraft, I understand the concept of this. They also say that they've paid the bill etc.

Now what happens when, after x amount of days, i've not been able to put the money in to cover it and they set it as unpaid.

Surely if it's an unarranged overdraft, the bill should be paid and I owe money for the overdraft.

But now, if i don't have the funds, i owe money for the unarranged overdraft and then money for the bill not being paid because there is no money in the bank.

How is there no money when you've given me an overdraft to cover it...?

I only ask because I woke up today to £100 charges. £72 unarranged overdraft charges and £24 unpaid direct debit charges.
Doesn't the overdraft stop you from incurring the DD charges?

grumbler

SniperMonkey wrote: »

I purposely set my account up with no overdraft, dont want one ever.

If you don't want one ever, then don't slip into the unarranged overdraft that you keep doing. Otherwise you do want to have the arranged one to save on charges and the interest.

Sometimes when I don't have the money in I get letters saying i've gone into an unarranged overdraft, I understand the concept of this. They also say that they've paid the bill etc.

Now what happens when, after x amount of days, i've not been able to put the money in to cover it and they set it as unpaid.

Do you mean that the money gets debited first and then credited back later? I don't think this is possible.

Surely if it's an unarranged overdraft, the bill should be paid and I owe money for the overdraft.

Generally, it's up to the bank either to process the transaction or to reject it. In both cases they charge you either for 'unpaid item' of for getting overdrawn.

How is there no money when you've given me an overdraft to cover it...?

The only money that they've given you is arranged overdraft. Unarranged overdraft isn't 'given' and is at the bank's discretion.

I only ask because I woke up today to £100 charges. £72 unarranged overdraft charges and £24 unpaid direct debit charges.
Doesn't the overdraft stop you from incurring the DD charges?

For each transaction it's either 'unpaid DD charge' or 'unarranged overdraft charge'. However, if they reject a DD and charge you for 'unpaid DD' , and this charge makes you overdrawn, they can charge 'unarranged overdraft fee' as well.

jonesMUFCforever

The free banking concept is very simple - keep your account in credit at all times - no excuses ''sorry money was late'' ''I forgot about that d/d or that s/o or the money I spent in Tesco last week'' etc etc.


If you have a £1 in your account and spend 99p - result happy customer.
If you have £1 in your account and spend £1.01 - result unhappy customer but very happy bank.


If you think this concept is wrong then everybody will pay for their bank accounts in the future.

PeacefulWaters

jonesMUFCforever wrote: »

The free banking concept is very simple - keep your account in credit at all times - no excuses ''sorry money was late'' ''I forgot about that d/d or that s/o or the money I spent in Tesco last week'' etc etc.


If you have a £1 in your account and spend 99p - result happy customer.
If you have £1 in your account and spend £1.01 - result unhappy customer but very happy bank.

Life could be so simple for so many people.

GingerFurball_2

The number of people I encounter who don't want overdrafts but who then proceed to rack up masses of charges for minor indiscretions is mind boggling.

SuperHan

SniperMonkey wrote: »

I purposely set my account up with no overdraft, dont want one ever.

What a silly, silly attitude.

If you don't want one, then don't use one!

I have one for emergencies, it's enough to cover all my bills for one month. I have never gone in to it, but if I do, I have no unarranged fees or bounced DD fees, just the smaller overdraft charges.

I honestly don't understand the thought process of some people!