THE BANK is overdrawn NOT ME, how can I claim?

Luckno7

First off lets review how banking works:
Banks want to borrow money off you to invest, to do so they offer interest to man in the street to deposit their savings with them. If you want to let the bank borrow your money you charge them interest.

It's just the reverse of you borrowing money from the bank.

(However this has been forgotten and people think they have to put money in the bank to earn interest, if we want more interest don't deposit your money in the bank, if they want to borrow it ask them for more interest...you own the money not them, you are the banker!)

Anyway the crux of the matter:

I run an online business taking card payments of the net. The card handler batch processes the payments at 02.00 the following day eg: Monday 00.00-23.59 transactions are processed at 02.00 Tuesday. The money leaves the payee and is should be deposited in my account, not the banks. The payment was made to me, the fact that I have my account with a bank into which the money is deposited simply means I have agreed to loan it to the bank. Now at that point the money is mine, and I have lent it to the bank, however it doesn't appear on my balance for another 3 days. If I wanted to withdraw this money within that 3 days the bank has essentially defaulted on it's loan. When I opened the account the terms were I could call in the loan at any time as it's an instant access account.

If I did try to spend that money and took my account overdrawn to the value of the payments they have defaulted on you bet your !!!! they would charge me every fee they could plus interest...when I reality they owe me!

dmg24

Are you saying that your bank has a three day clearing period?

Luckno7

dmg24 wrote: »

Are you saying that your bank has a three day clearing period?

Yes and that it's very wrong. If I want to be able to call in my loan in full at any time I should be able to, if the bank hasn't got the money to repay me that's an issue.

A clearning period for electronic transferes, did you ever here such BS. The card handler can transfere a whole day's payments within hours, that money is then mine, if i don't want to loan it to the bank I should be able to withdraw it immediatly not have to wait 3 days.

Imagine telling the bank they have to wait 3 days for you to get money from your pocket and walk it to the bank to repay a loan you had. You'd be liable for all kinds of charges.

bigstevex

Yup, its called a clearing period!

bigstevex

Have they signed an agreement for your loan?

Luckno7

bigstevex wrote: »

Have they signed an agreement for your loan?

Yes it's an instant access current account, therefore any money I loan them should be accessable to me immediatly.

Luckno7

Think about it, if your credit card comes out of your bank by direct debit, it comes out immediatly, how comes your direct debits in take 3 days?

So say you have an overlap, the bank owes you money from 3 days ago which you wish to with draw to make a payment you call in your loan the bank, but they haven't got the money they owe you available....

masonic

So let me get this straight: there is nothing in the T&Cs of your account to say that funds take a certain amount of time to clear and become available for withdrawal?

Luckno7

masonic wrote: »

So let me get this straight: there is nothing in the T&Cs of your account to say that funds take a certain amount of time to clear and become available for withdrawal?

Nope not that I can find other than for paper cheques.

What legal justification does a bank have to withold your money from you for any period other than "deposit" accounts.

This concept of a clearing period is insane, it's just become the status quo that no one has challanged since the old days.

masonic

If your card handler can confirm that the funds were received by the bank on the same day the transfer was initiated (Direct Credit/CHAPS), then you could have a case. Otherwise it's your card handler that is at fault for using a payment system (BACS) whereby the funds do not reach the destination account in a timely manner, if their T&Cs state otherwise.

Luckno7

masonic wrote: »

If your card handler can confirm that the funds were received by the bank on the same day the transfer was initiated (Direct Credit/CHAPS), then you could have a case. Otherwise it's your card handler that is at fault for using a payment system (BACS) whereby the funds do not reach the destination account in a timely manner, if their T&Cs state otherwise.

Thanks for the advice, however if the payment leaves the card handler and the money is mine (I believe I have title of ownership) who's possesion is it in? If my bank has it and is refusing to release it to me surely they are in violation?

Infact my bank must be holding it as part of the whole scam is to deprive me of any interest accrued to me, it is therefor my money on loan to the bank and they are refusing to repay that loan on demand.