Bank makes me overdrawn?!

callum9999

Sammie007 wrote: »

Why be rude? Is it necessary? I'm more insulted it's from a man u fan too...

You have to expect that from this board. We "know best", and some people take great pleasure in rubbing that fact in people's faces.

If you have proof that the direct debit was taken in error then you can tell the bank to reverse the payment (normally you don't need any proof to request it - but you'd be much safer given the long period of time that's elapsed if you do now). The Direct Debit guarantee and website doesn't seem to put any time limit on when you can reverse an incorrect DD that I can see, but that doesn't definitely mean there isn't one.

If you'd sorted this out sooner then the bank would have reversed it and refunded any bank charges that you were charged. Theoretically I don't see why that can't be backdated 6 months, but in practise it's going to be a tough sell and there may be a stated time limit somewhere I haven't seen. If no-one here knows then you'd be best of getting some specialist advice from somewhere like the Citizens Advice Bureau.

masonic

Sammie007 wrote: »

Wow. Well,I thought I may have got some nice answers. Not sure about the jackanory remark. My insurance was supposed to take the direct debit out on the 15th of the month,as we changed it because I'd got made redundant the month before, but took it out on the first of the month. They did me no favours whatsoever. I'd have rather paid a £15 charge. My insurance offered me a free month as a gesture of goodwill. And being jobless and benefit less,it's very hard to pay it off. I'm sure we did one month but still got charged. But I'm unsure on why they can take me over my limit in the first instance.

If you have confirmation that the change was actioned and that there was enough time before the next payment for the change to have taken effect, then you could have made a claim under the direct debit guarantee if the payment was taken incorrectly on the 1st. That probably would have resulted in any charges from the reversed direct debit being waived as well. But it's a bit late now...

As for the unauthorised overdraft, as the bank has told you, this is how your account works and it is part of the T&Cs you agreed.

Dobbiebill has provided you with several suggestions of how you could try to resolve this situation. Coming to some mutually agreeable arrangement with the bank will be your best way out of this.

masonic

callum9999 wrote: »

Theoretically I don't see why that can't be backdated 6 months, but in practise it's going to be a tough sell and there may be a stated time limit somewhere I haven't seen. If no-one here knows then you'd be best of getting some specialist advice from somewhere like the Citizens Advice Bureau.

There definitely isn't a time limit on direct debit indemnity claims, but I'd think the likelihood of all of the subsequent bank charges being waived now is quite slim.

Ballard

masonic wrote: »

There definitely isn't a time limit on direct debit indemnity claims, but I'd think the likelihood of all of the subsequent bank charges being waived now is quite slim.

I don't see why they shouldn't be reversed. Isn't the dd guarantee that you wouldn't be out of pocket in the event of an error?

YorkshireBoy

masonic wrote: »

There definitely isn't a time limit on direct debit indemnity claims, but I'd think the likelihood of all of the subsequent bank charges being waived now is quite slim.

The Payment Services Regulations would seem to offer a means of redress?...

http://www.legislation.gov.uk/uksi/2009/209/pdfs/uksi_20090209_en.pdf

See Reg 61 (and others referred to within).

masonic

Ballard wrote: »

I don't see why they shouldn't be reversed. Isn't the dd guarantee that you wouldn't be out of pocket in the event of an error?

My thinking was that there actually isn't anything specific in the DD guarantee, but 6 months is ample opportunity to spot the mistake and inform the bank, so it would come down to a 'reasonableness' test... had it not been for the Payment Services Regulations pointed out by Yorkshire Boy above.

callum9999

Seems like it's possibly good news then. Though when you go back to the bank with this new argument you need to be a hell of a lot clearer than you have been on here!

- Specifically state that the direct debit was taken incorrectly.
- Specifically state that the company that took the direct debit acknowledges this.
- Specifically state that you want the direct debit reversed and your account put back in the state it would have been had the direct debit never been taken. If they refuse then bring up the regulation mentioned above and the direct debit guarantee (though given the complicated nature of your case they probably won't give you an answer either way before they investigate it properly). If they ask why you've waited so long then be honest and say you were unaware of your rights until now.

Don't waffle about anything else! The more you talk the more chance of confusion from the other side.

Also bear in mind that you're still liable to pay for the insurance. Assuming you're still driving on that insurance you'll presumably need to make sure it's paid immediately - there may also be some issues about it being a late payment, though as they've seemingly acknowledged it's their error they should be reasonable about it (either way it's going to be a lot less than the £80 a month overdraft charges you seem to be racking up!).

callum9999

masonic wrote: »

My thinking was that there actually isn't anything specific in the DD guarantee, but 6 months is ample opportunity to spot the mistake and inform the bank, so it would come down to a 'reasonableness' test... had it not been for the Payment Services Regulations pointed out by Yorkshire Boy above.

I'd personally argue that it's reasonable for the OP to not know about this right. It's not as if they flat out ignored it - they seem to have been arguing with the bank about this for a while, just asking for the wrong thing (goodwill based leniency when they needed actual redress).

masonic

callum9999 wrote: »

I'd personally argue that it's reasonable for the OP to not know about this right. It's not as if they flat out ignored it - they seem to have been arguing with the bank about this for a while, just asking for the wrong thing (goodwill based leniency when they needed actual redress).

It's a bit academic now, but the bank really ought to have picked up on this if it was brought up by the OP. "My direct debit went out on the wrong date" or similar, should result in a conversation about the guarantee whether or not the customer is aware of their rights.

joe134

banks will make you overdrawn on purpose.
I had this 30 years ago, and it still persists.
If you pay in say, £1k on any day by SO and then have an SO for paying out £1k the same day, they will always take the SO out first, before putting your £1k in at midnight, therefore making you overdrawn .They never pay in, then take out at midnight, always the other way round.
Always stagger paying in,first and paying out, I learned that years ago, at my cost.
To prove the point;when I noticed the charges on my A/c , years ago,and confronting them,they admitted it was bank policy;
I had no arranged overdraft at all, still don't, unless it's their usual £50 free one.
I actually went to the bank and paid in money over the counter, first, then went outside and withdrew the same amount, at the wall,leaving a zero balance?( I thought) BUT, the money withdrawn, was first on the A/c, throwing me in the RED, for seconds,incurring charges.I got them refunded.
Like a lot on here, I have multiple A/cs and set up SO's to feed A/cs, but always stagger them, by 24 hours, UNLESS I have the money in the A/c to cover the amount withdrawn,( which I always do), which allows me to set them all up on the same day.
PS, OP, don't take things personal on here, it's just part of the banter:)