Help can they do this...?

Marc25

Hi having a bit of trouble with A&L.

I wasn't sure what had happened until numerous emails with a&L and statement checking!

see below....

I have a current account with them and have a debit card.

4th feb paid for travel card £171.00 using my debit card - (plently of money in account to cover it.)

12th feb checked account and notice i have £190 in account (didn't put two and two together!!) spent money thinking everything must have been paid by now.

then 14th feb i find myself overdrawn £171.

now i know i should have checked before taking the money but i was unaware of the following process >>

you pay for an item (travel card in my case)
if the company whom you paid for the item doesn't take the money within 7 days it gets put back into your account available to withdraw

After finally getting the process explained to me after numerous emails backward and forwards I debated this process but was told this is the way it is.

harsh and not fair but thats the system so be it!
I emailed them to say i will pay £171 in on payday this month 31st march.

Now A&L have charged me £5 per day totalling £160 they have told me i must pay this by the 8th.
there is no way i can afford this ... i actually can't really afford the £171 but will have too!

What can i do?

The way i see it:

Pay £171 31st march
then balance £0
8th april minus £160
then if i pay that next payday 30th april i will have incurred more charges!!!!

Help please!

Marc

dunstonh

if the company whom you paid for the item doesn't take the money within 7 days it gets put back into your account available to withdraw

That isnt what happens.

At point of sale, the transaction "may" put an earmark against your account for 3-5 days but your balance remains the same. The earmark will expire whether the transaction has come off the account or not. The retailer can take months to send the transaction in.

harsh and not fair but thats the system so be it!

Its very fair. You are responsible for what is in your account. If you are running it that close to zero then you must have realised you were drawing funds you didnt have.

Now A&L have charged me £5 per day totalling £160 they have told me i must pay this by the 8th.
there is no way i can afford this ... i actually can't really afford the £171 but will have too!

A&L charge £5 a day in accordance with their terms and conditions which were altered to reflect the bank charges court case. It is deemed currently that this is a much fairer system and is something the banks believe that can not be challenged successfully in court.

I'm afraid that you are the one responsible for your spending habits. not the bank.

Marc25

dunstonh wrote: »

That isnt what happens.

At point of sale, the transaction "may" put an earmark against your account for 3-5 days but your balance remains the same. The earmark will expire whether the transaction has come off the account or not. The retailer can take months to send the transaction in.


can i withdraw money that i dont have then>?
So i could go to the cashpoint now and withdraw 200 pounds then
yes!?
NO!


I'm afraid that you are the one responsible for your spending habits. not the bank.

You have misinterpreted my post!
I am not blaming the bank nor seeking pity from anyone.
just explaining the details of my own mistake/lack of understanding thus making me overdrawn.

all i asked was is there any suggestions anyone had on how i can avoid getting more changes if i can't pay the full amount plus charges by the 8th.

FOR EXAMPLE:
speak to them and make a payment plan...
submit a written income/outgoings spreadsheet with how much you can afford to pay back each month.

thats all just advice on how to recify the situation with out robbing peter to pay paul.

thanks:T

frugallass

The online statements are terribly out of date and cannot really be relied upon - I used to be with first direct and within an hour of withdrawing cash from a machine it showed on the account, alliance and leicester's can take at least a day for transactions to show

also, see my recent new thread regarding their statements !

dunstonh

The online statements are terribly out of date

Account balances reflect the balance of the account at close of business the night before. Only the few "online" banks where transactions happen there and then will update as they go along. Some banks may also show an available balance in addition to the actual balance. This takes into account uncleared funds or earmarks that may exist. Some banks have a hybrid system where some transactions take place straight away but others occur overnight in batches.