Direct Debit Ring Fencing

Aitch_G

Hi,


Can anyone advise regarding a problem I'm having with my bank ring fencing funds for direct debits that aren't due for several days?
It happened on the bank holiday a couple of weeks ago and then again this weekend. I've had DDs due on the Monday (or Tuesday as it was on the bank hol) and they've taken them from my account on the Fri/Sat leaving me with no money over the weekend. I should say I know I have funds going into the account on the Monday to cover them.
When I called them today they said that as of a Friday at 6pm it then counts as the next banking day ie. Monday and there's nothing they can do about it.
My only option is apparently to change the dates the DDs are due, but as I pointed out I can't be changing my DD dates every month trying to avoid them falling on Mondays!
They did offer me a temporary credit into my account to give me cash until Monday, but that's surely not the point?
If I have an email from, say BT, saying the funds will be taken 'on or shortly after' a certain date, does the bank have a right to take this from my account 2-3 days before?
Any info gratefully received!

stclair

Firstly which bank are you referring to?

YorkshireBoy

The money hasn't been taken yet. It's simply been 'ring-fenced' as you have said. You will still continue to earn credit interest on it (if your account pays it) or save debit interest on it (if you're overdrawn). In other words, it's only affecting your available balance, not your balance.

Normally debits due out on a Monday are offset by credits due in the same day. So...

Which bank is it?

From where are the funds coming from on Monday? Because if they were coming via BACS Direct Credit I'd expect them to be showing now.

10pence

Aitch_G wrote: »

Hi,


Can anyone advise regarding a problem I'm having with my bank ring fencing funds for direct debits that aren't due for several days?
It happened on the bank holiday a couple of weeks ago and then again this weekend. I've had DDs due on the Monday (or Tuesday as it was on the bank hol) and they've taken them from my account on the Fri/Sat leaving me with no money over the weekend. I should say I know I have funds going into the account on the Monday to cover them.
When I called them today they said that as of a Friday at 6pm it then counts as the next banking day ie. Monday and there's nothing they can do about it.
My only option is apparently to change the dates the DDs are due, but as I pointed out I can't be changing my DD dates every month trying to avoid them falling on Mondays!
They did offer me a temporary credit into my account to give me cash until Monday, but that's surely not the point?
If I have an email from, say BT, saying the funds will be taken 'on or shortly after' a certain date, does the bank have a right to take this from my account 2-3 days before?
Any info gratefully received!

Bank and the type of account could be useful - such as basic, 'normal' current.

If you have had issues in the past, such as bounced direct debits (DD) then I could understand the bank 'ring fencing' cleared funds to cover them.

What funds did you having going in, as banks don't see all types of credits into an account?

Could you clarify the 'temporary credit', does this mean an overdraft facility?

stclair

I think the OP is a customer of either RBS or NatWest.

In this case they will offer you a temporary credit now so you ain't left without funds over the weekend.

https://supportcentre.natwest.com/app/answers/detail/a_id/2305/~/it-is-the-weekend,-why-do-i-have-less-money-than-i-should-have%3F

This is changing soon though so any debits or credits due on Monday will actually happen on the Monday rather than the Saturday before as at present.

Aitch_G

I'm with RBS, it's a Basic Account and I have no overdraft facility.
The funds going in on the Monday are being deposited over the counter.
I'm not too worried about interest, just my available balance, which they are making unavailable by ring fencing it days before they're due. I haven't had any problems with unpaid DDs that have led to them doing this, it is apparently just the way their system works.
I have however been with other banks in the past and don't recall this ever happening.
I'm calling it temporary credit, there was a proper term she used, but basically they're put the equivalent of the DDs into my account which I'll repay on Monday. It's not an overdraft as such and there's no charge for it.

10pence

If I've understood that link, the temporary credit is just allowing access the the 'ring fenced' funds, placing the responsibility on the customer to repay funds to cover payment(s).

Really hope Nat West are writing to customers informing them of the change to process as this will no doubt lead to complaints.


Regarding the deposit the banks can't see that and you cannot guarantee it being paid into your account on that day or in time to cover the out-going payments.

stclair

10pence wrote: »

If I've understood that link, the temporary credit is just allowing access the the 'ring fenced' funds, placing the responsibility on the customer to repay funds to cover payment(s).

Really hope Nat West are writing to customers informing them of the change to process as this will no doubt lead to complaints.


Regarding the deposit the banks can't see that and you cannot guarantee it being paid into your account on that day or in time to cover the out-going payments.

It's funny how no one ever complains when they get a credit on a Saturday rather than a Monday ��

They won't inform anyone as that's how it should be anyway.

brewerdave

I've got a strange one with my NatWest account this weekend. A DD is shown for Monday's date thus reducing my available balance - but was already showing as available in the linked savings account yesterday !!
Last night the money appeared to be in two places at once !!

Aitch_G

10pence wrote: »

If I've understood that link, the temporary credit is just allowing access the the 'ring fenced' funds, placing the responsibility on the customer to repay funds to cover payment(s).

Really hope Nat West are writing to customers informing them of the change to process as this will no doubt lead to complaints.


Regarding the deposit the banks can't see that and you cannot guarantee it being paid into your account on that day or in time to cover the out-going payments.

I guess they can't know or guarantee the deposit's coming but I think as St Clair knew exactly which banks this happens with it is an issue for customers, which hopefully they seem to be addressing and the fact they offer a way to get you by until the DD is actually due, they know it's not strictly right to let this happen.
If it were due on a Thursday any ring fencing that's maybe in place earlier doesn't show on your account, at least in my experience it hasn't, it's simply because it's the weekend.

stclair

Aitch_G wrote: »

I guess they can't know or guarantee the deposit's coming but I think as St Clair knew exactly which banks this happens with it is an issue for customers, which hopefully they seem to be addressing and the fact they offer a way to get you by until the DD is actually due, they know it's not strictly right to let this happen.
If it were due on a Thursday any ring fencing that's maybe in place earlier doesn't show on your account, at least in my experience it hasn't, it's simply because it's the weekend.

This situation only happens because the system on a Saturday thinks it's Monday.