Direct Debits taken day early

Z_O_L

Hello all


I've noticed that my Direct Debits were taken out on the evening of the 14th rather than the early hours of the 15th. Now I've searched and seen some threads on this which seem to say that if its a non working day they sometimes reduce your available balance on the Sunday and then reduce your bank balance on the Monday? Well the 14th was a Wednesday and the 15th a Thursday. They've also lowered both my available balance and bank balance the day before they're due to (it's not like they reduced the available a few hours before midnight and left the money in there, they physically reduced my bank balance early). I've looked at my direct debit details from each of the companies they're for (Council Tax, Gas & Electric, Water and Insurance) and they all state my direct debit day is the 15th. On my bank account it stated that the direct debits came out on the 15th (each transaction is dated the 15th). However it was still the evening of the 14th December when I was looking at my bank (which showed the transactions and my lowered balance).


So are the banks allowed to do this? If so what are the rules?


Thank you

paragon909

Z_O_L wrote: »

Hello all


I've noticed that my Direct Debits were taken out on the evening of the 14th rather than the early hours of the 15th. Now I've searched and seen some threads on this which seem to say that if its a non working day they sometimes reduce your available balance on the Sunday and then reduce your bank balance on the Monday? Well the 14th was a Wednesday and the 15th a Thursday. They've also lowered both my available balance and bank balance the day before they're due to (it's not like they reduced the available a few hours before midnight and left the money in there, they physically reduced my bank balance early). I've looked at my direct debit details from each of the companies they're for (Council Tax, Gas & Electric, Water and Insurance) and they all state my direct debit day is the 15th. On my bank account it stated that the direct debits came out on the 15th (each transaction is dated the 15th). However it was still the evening of the 14th December when I was looking at my bank (which showed the transactions and my lowered balance).


So are the banks allowed to do this? If so what are the rules?


Thank you

All banks have different processing times.... What difference does it make, They were going to get paid anyway. It's now the 15th. Some banks like Santander process bacs and direct debits before midnight.

Z_O_L

Well if they take the payments the day before and I haven't managed to transfer money between my accounts to cover the direct debits, won't they charge me?

Placitasgirl

No, your DD's were processed through your account during "overnight processing" and were dated for the correct day. You'll find that this process happens somewhere between 10pm and midnight on weekdays (except Fridays) at many banks. Credits such as Bank Giro Credits (BGC) which are often used to pay salaries also arrive in your account during overnight processing, but I'm sure you wouldn't have started a thread if you thought you'd been paid a day early!

There was no problem with your DD's as they were claimed correctly, processed late on 14th and dated on your account for 15th.

mwarby

Many (most?) Banks will give you till midday or early afternoon, to sort failed direct debits and standing orders without being charged. Might be worth checking your notification settings to ensure you get notifications of low balance or failed transactions, to make sure you can sort such things without charges

PeacefulWaters

If you're cutting it that fine I'd suggest changing DD dates if you can.

Shakin_Steve

Barclays used to reduce the balance on a Saturday for dd's due on Monday. Probably quite helpful to those who like a weekend splurge.
They don't do it any more.

Z_O_L

Placitasgirl wrote: »

No, your DD's were processed through your account during "overnight processing" and were dated for the correct day. You'll find that this process happens somewhere between 10pm and midnight on weekdays (except Fridays) at many banks. Credits such as Bank Giro Credits (BGC) which are often used to pay salaries also arrive in your account during overnight processing, but I'm sure you wouldn't have started a thread if you thought you'd been paid a day early!

There was no problem with your DD's as they were claimed correctly, processed late on 14th and dated on your account for 15th.

So they can take direct debits on the 14th even though I've asked for it to be the 15th? They were dated for the 15th but physically took them before. I thought that sort of thing wasn't allowed?

No I definitely wouldn't make a thread about being paid a day early as I'm self employed and get paid the majority of the time by cheque. For me being paid means: invoice the client, wait 30 days, start to look for the postman, wait another few days, receive the post, try and time going to the bank with another trip into town, queue up at the bank, pay the cheque in, hope they don't mess anything up, go home, wait a week whilst the bank pretends it's doing something with my money, if nothings gone wrong in that list then finally get paid.

Not sure I've been paid a day early in my life. But if I were employed and paid a day early. I'm not sure I would care about fractions of a pence in extra interest. Or being able to online shop a few hours before midnight. If my direct debits come out a day early I could be fined £100. No?

Ballard

To answer your question as to whether banks are allowed to do it you early, it is the originator (e.g. Council) who determine when the debit is taken rather than the bank.

Whenever a direct debit is due, your bank will be debited and the originator credited. Your bank will then debit your account if a valid agreement and sufficient funds are in place or request a refund from the remitter.

Z_O_L

mwarby wrote: »

Many (most?) Banks will give you till midday or early afternoon, to sort failed direct debits and standing orders without being charged. Might be worth checking your notification settings to ensure you get notifications of low balance or failed transactions, to make sure you can sort such things without charges

Oh ok so if they took my direct debits at 10pm the day before and I went overdrawn they'd let me transfer money between accounts the next day? No charges? No marks on the credit file? There's not much point having a low balance notification as it's a low balance full stop. Plus throughout the year there's various card payment renewals that come out on random days so I like to login on the evening of the 14th to make sure I can physically see I can pay the direct debits. If not I transfer money. What doesn't work is when I login on the evening of the 14th and find my direct debits have already been paid before its even the 15th

Z_O_L

PeacefulWaters wrote: »

If you're cutting it that fine I'd suggest changing DD dates if you can.

There's no pay day for me, so nothing to cut close. DD dates are all 15th middle of the month.