Loan payment made on the 1st, credited to loan balance on 14th - is this legal?

Pigwideon

For a Santander loan, we make the monthly payment on the 1st of the month, from a Santander bank account. However on the statement, it credits on the 14th, seemingly incurring two extra weeks of interest every month.  When asked, Santander have some vague answer about it ‘taking a while to transfer’ sometimes, which feels like nonsense when it’s within the same bank.  Is this reasonable? Any advice appreciated!

[Deleted User]

It's legal.

It seems a lengthy period, but it depends on how you're making the payment and obviously allowing time for them to allocate it to your account, depending on the way you're paying and the holding account that it goes into. 

Pigwideon

Thanks for your reply! Payment is made by direct debit and as I said goes from one Santander account to another. If it’s legal, is there any burden on the bank for the time period to be ‘reasonable’?

nyermen

What does your loan agreement say about payment processing times?
I can't compare directly, but for HSBC from my current account to my mortgage, it is credited immediately.

Thrugelmir

Is the transaction back dated to the 1st though? 

Pigwideon

nyermen said:

What does your loan agreement say about payment processing times?
I can't compare directly, but for HSBC from my current account to my mortgage, it is credited immediately.

Thanks, I’ll check, it hadn’t occurred to me there might be some specific term around the processing time.

Pigwideon

Thrugelmir said:

Is the transaction back dated to the 1st though? 

1st level support can’t seem to tell us, so I think we’ll have to raise a formal request to find out. They were supposed to be sending a statement over a week ago but we’re still waiting 🙄