Direct Debits taken day early

Placitasgirl

The bank don't "take" your DD's; they are "claimed" by the "Originators, i.e. the people you're paying by DD.

The processing of payments by your bank for 15th December (as it is a weekday) takes place between 10pm and midnight (ish) and it's during this "overnight processing" that payments both into and out of your account are processed. They are dated for the correct date, i.e. 15th December, and if you woke up at 7am on 15th and the account was overdrawn you would have until later in the day to return your account to credit.

The Originator didn't claim your payments early either - the processing of payments dated 15th happened between 10pm and midnight on 14th. If it happened at that time on 15th your payments would have been dated 16th, so in your terms one have been one day late.

Shakin_Steve

Just another point to try and clarify. If I make a faster payment from Santander to Barclays at 6:30 in the evening, that will show up straight away. But it's not until the next working day that it is actually credited.

PeacefulWaters

Z_O_L wrote: »

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.

As far as the bank is concerned the transaction has taken place on the 15th.

They have an overnight processing system that starts late in the day on the 14th and usually completes by midnight or shortly after.

Just because the transaction has shown "early" doesn't mean you need to go in to panic mode.

To answer the original question you posed, yes - it's allowed. And there's absolutely no detriment to you.

jonesMUFCforever

PeacefulWaters wrote: »

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

THIS!!! I guarantee that the date against the d/d will be today and not yesterday.

Z_O_L

Placitasgirl wrote: »

The bank don't "take" your DD's; they are "claimed" by the "Originators, i.e. the people you're paying by DD.

The processing of payments by your bank for 15th December (as it is a weekday) takes place between 10pm and midnight (ish) and it's during this "overnight processing" that payments both into and out of your account are processed. They are dated for the correct date, i.e. 15th December, and if you woke up at 7am on 15th and the account was overdrawn you would have until later in the day to return your account to credit.

The Originator didn't claim your payments early either - the processing of payments dated 15th happened between 10pm and midnight on 14th. If it happened at that time on 15th your payments would have been dated 16th, so in your terms one have been one day late.

Well they may be claimed by the originators but the bank decides when to remove the funds from my bank. I wouldn't expect the bank to take the funds out a day late I just expect them to take the funds out at some point during the 24 hours that I've asked them to do so (via agreement with the originators).


If the bank sometimes takes them a few hours early (at say 10pm), but will allow me to transfer money in after 10pm to bring my account back in credit (if I've gone overdrawn because the bank took the money early), then that's fine. As long as there's no charges or black marks on my credit file I don't mind them taking direct debits early.

Z_O_L

PeacefulWaters wrote: »

As far as the bank is concerned the transaction has taken place on the 15th.

They have an overnight processing system that starts late in the day on the 14th and usually completes by midnight or shortly after.

Just because the transaction has shown "early" doesn't mean you need to go in to panic mode.

To answer the original question you posed, yes - it's allowed. And there's absolutely no detriment to you.

As long as there's no detriment to me. When I was a teenager I had errors on my account which caused monthly bank charges and ruined my credit file for 6 years. It was impossible to sort the problem and every month the bank charged me because I couldn't pay my bank charges. This happened every month for 18 months. It took me 2 years to recover financially and 6 years for my credit file to be clear (which in turn stopped me getting a mortgage for 3 years and cost me £35,000 in rent). Naturally I'm extra cautious with regards to fraud, errors and balances. I check my balance on the evening of the 14th of every month and when the bank takes all my direct debits 2 hours before I'm expecting them to I naturally worry why they've done this, how early they can do this (hours, days weeks etc) and what would happen if I intended to transfer money between accounts at 11pm but am to late because the bank took my direct debits and 10pm the day before.

Z_O_L

Shakin_Steve wrote: »

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.

Sorry when you were saying the night before, as I also do things the night before (and I'm now learning that 10pm on the 14th counts as the 15th) I thought maybe you meant you do things the night before the night before (as in the 13th). But see what you were saying now.


Seems out that the transaction wont have taken place until the next working day (e.g the 15th) as it's not just the running balance, it's the available balance and the actual balance at the top of the page. They all say that the direct debits are gone and that the money has left my account.

Ballard

Z_O_L wrote: »

Well they may be claimed by the originators but the bank decides when to remove the funds from my bank.

As I have said on two occasions, the money is taken from your bank on the day that the originator requests them. Your bank have no control on that. If they do not debit your account on that day then they are lending money to the originator.

The process is NOT that the originator requests the funds from your account. They take it from your bank. Your bank then either debit your account or asks the originator's bank to refund them.

molerat

Z_O_L wrote: »

............ and what would happen if I intended to transfer money between accounts at 11pm but am to late because the bank took my direct debits and 10pm the day before.

The "banking day" has ended and the money would not be credited until the next day, you should always have cleared funds in your account by the end of the banking day. Even paying in cash after 4pm may not be credited until the next day with many banks but, as posted somewhere above, as long as the money is credited by a certain time that day there should not be a problem. The same happens if you transfer money on a Saturday it will not be credited until Monday. I often have my TSB debit card transactions showing up on Saturday with a debit date of Monday. The safest way of working is to ensure the money is in the account by around 4pm the working day before the debit is due.

firsttimemover

I found this out (in panic mode at first) for my Santander account when I got an email on a Sunday evening saying that my account was overdrawn (up until recently I've always held a healthy balance in there but for obvious reasons I've recently transferred it out but keeping the direct debits for cashback on the Lite account).

As long as you make the payments by 4pm the next day it's fine. I had a standing order going in first thing so was all good, but it did make me worry for a while, no other banks that I bank with (Lloyds and HSBC group mainly) operate in this way so it caused a bit of a shock and panic but no harm done! I've since added an overdraft to cover everything as one of my payments didn't go out until the second round of collections later in the day which again caused undue stress that it wasn't going to go out (it actually debited after 5pm when I was on the phone to them to try and sort it out!). It will never cost me anything as the money will always be in there by 4pm but will give me a bit of peace of mind that everything will get paid in the first round of collections first thing.

I know the advice is always to ensure the money is in there a few days before but I personally know that I will always check my account on this day (it is sort-my-accounts-out day!) and can always make a faster payment if anything did go wrong.