Direct Debits taken day early

Z_O_L

Ballard wrote: »

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.

I get that the banks don't decide when, but I've agreed with all the originators (council, gas, electric, water and insurance) that they take it on the 15th. The bank took them all at the same time on the 14th. That's the banks decision to take it early not the originators. Not really sure what you mean.

Ballard

Z_O_L wrote: »

I get that the banks don't decide when, but I've agreed with all the originators (council, gas, electric, water and insurance) that they take it on the 15th. The bank took them all at the same time on the 14th. That's the banks decision to take it early not the originators. Not really sure what you mean.

Your bank merely acts when the funds are taken from their account. Your bank does not decide when the process is initiated. If the funds are taken early then your beef is with the originator.

EarthBoy

Z_O_L wrote: »

So are the banks allowed to do this?

Yes.

Z_O_L wrote: »

If so what are the rules?

There aren't any rules, only different banks' processes. If the DDs were dated as 15th on your statement, then they were paid on the correct day. If you were looking online on 14th and saw the following day's payments, it just means that the bank had run the processing early. That's just how some banks work.

PeacefulWaters

When you look at your online banking today, what date is showing next to the transactions?

Shakin_Steve

I really can't see what the problem is here. On your online statement, the dd's were dated on the 15th, so that's the date the bank says they were taken, not the 14th.
Barclays list all the transactions for one day at the end of that day, but they list the debits first and the credits afterwards. So, assuming we start with a zero balance. I know that £300 is going out that day, so I transfer ££400 the night before. My balance immediately shows +£400, but at the close of business next day, it shows £300 debits making the running balance £300 overdrawn, then £400 credit making +£100.
They don't charge me for this, it's just their accounting method.

Z_O_L

Ballard wrote: »

Your bank merely acts when the funds are taken from their account. Your bank does not decide when the process is initiated. If the funds are taken early then your beef is with the originator.

To make sure I'm understanding you correctly.


So its nothing to do with the bank and all 4 of the originators took the payments the day before? If you're correct does that mean everyone else on here is talking nonsense? It sounds like what you're saying is different to everyone else?

Z_O_L

EarthBoy wrote: »

Yes.



There aren't any rules, only different banks' processes. If the DDs were dated as 15th on your statement, then they were paid on the correct day. If you were looking online on 14th and saw the following day's payments, it just means that the bank had run the processing early. That's just how some banks work.

Well they weren't paid on the correct day though were they? They were dated the 15th but they removed the money from my account on the 14th.

Z_O_L

Shakin_Steve wrote: »

I really can't see what the problem is here. On your online statement, the dd's were dated on the 15th, so that's the date the bank says they were taken, not the 14th.

It still doesn't make sense. They were taken on the 14th. Just because it was dated the 15th doesn't mean it was.

Shakin_Steve wrote: »

Barclays list all the transactions for one day at the end of that day, but they list the debits first and the credits afterwards. So, assuming we start with a zero balance. I know that £300 is going out that day, so I transfer ££400 the night before. My balance immediately shows +£400, but at the close of business next day, it shows £300 debits making the running balance £300 overdrawn, then £400 credit making +£100.
They don't charge me for this, it's just their accounting method.

So if you have £300 coming out on the 15th you transfer £400 in on the 13th but they still show you as going overdrawn but don't charge you?

Ballard

Z_O_L wrote: »

To make sure I'm understanding you correctly.


So its nothing to do with the bank and all 4 of the originators took the payments the day before? If you're correct does that mean everyone else on here is talking nonsense? It sounds like what you're saying is different to everyone else?

I have given you a timeline of the process. To clarify - what happens is that the originators bank will debit your bank in bulk and send a file listing all of the direct debits that make up that amount. Your bank will then use that file to decide whether to debit you or request a refund.

It may be that your bank has processed the file late at night rather than in the early hours. Whether they have debited you value 14th or 15th and what they would do if that put you overdrawn are not known to me.

I can sort of see your frustration but you'll have to contact your bank for the answer that you are looking for. It would be good if you could then post their response.

Shakin_Steve

Z_O_L wrote: »

It still doesn't make sense. They were taken on the 14th. Just because it was dated the 15th doesn't mean it was.



So if you have £300 coming out on the 15th you transfer £400 in on the 13th but they still show you as going overdrawn but don't charge you?

No, I said the night before, so although the credit shows on my running balance, it's not actually credited till the next working day. So when your running balance was showing the dd's had been taken, the transaction didn't take place until the next working day.
When you read up on any transaction, it says........blah, blah, blah....unless you make the payment after 4:30, when it will count as the next working day.