Direct Debit Charges, is this legal?? Please help!!

[nick_cameron]

Hello everyone, Firstly I'd like to say what a great forum, and I'd like to apologise if what I'm about to say has already been covered.. but this is really getting to me!!

 

Basically I have a direct debit setup for 2 items every month, the combined cost equating to no more then £70. The DD is set up for the 1st of ever month.

 

On 29th September (saturday) I payed in £100 cash, in an overdrawn acount, to ensure there would be sufficient funds come 1st October. The lady at Natwest said no problem, and said the money had cleared.

 

Ive now recieved a letter from Natwest saying how I will be charged for both Items as the DD bounced - despite there being sufficient funds in the account on the 29th. Their saying that there needs to be a minimum of one full working day for cash to be cleared in this situation. So not only will I have to pay charges for Natwest, but also the 2 independant companies who have been effected. Why? God only knows when there was more then enough funds to pay both items off.

 

Can anyone offer any advice as to what to do now, and how i can go about getting these charges back?

 

Really appreciate any help, thanks for your time.

 

Nick:-|

[hedgey06]

Hi Nick, and welcome on board!

 

Unfortunately, Nat West do this on a very regular basis - they'll say that the funds are cleared but they're actually not.

 

In the first instance, I'd be inclined to contact them by phone (backed up by a letter - send recorded delivery) explaining how disappointed you are that you was firmly told by one of their employees that the cash had cleared. This may work if it's the first time that this has happened on your account and you may be lucky enough to have the charges 'cancelled' as a gesture of goodwill. You'll need to stick to your guns though - and have evidence ready to show your good banking history.

 

If it doesn't work though, I'm afraid your only option is to pursue them using the CAG process of prelim, LBA and then N1 at court. But have a good read of the site FAQ's before you attempt this - and click on the link for Nat West Claimants in my signature for some info and advice on reclaiming from Nat West.

 

Best of luck, and keep us posted. x

[nick_cameron]

Thanks Hedgey I'l get on and try and do that!

 

Its just so frustrating how these companies treat customers, especially having used them for years!!

 

Oh well, thanks again for your help ;-)

[Micky the Hippo]

to my hazy recollection cash should be available immediately

 

unless perhaps it's paid in late in the day, perhaps

 

I'd get someone there to explain it all clearly, DDs sometimes start to act earlier than you think, I've had some educational explainations from banks about how cheques and DDs 'really' work

 

at the end of such a conversation while you sound somewhere between amazed and shocked and grateful for their time, a goodwill refund is often the outcome 'this once'

[BobbaFett]

they say one working day, yet most banking systems, assuming it is all in house, with the same bank, is REAL TIME BANKING. meaning, immediate transfer's of money. I have never really understood why you had to wait in the first place.

[gizmo111]

AFAIK when you pay cash in on a weekday it is cleared immediately, the 29 was a Saturday and Natwest would already have paid that DD for the 1st which was a Monday - you will see the updates on online banking on a sat morning. The cash would have had to be paid in on the 28 to clear before the DD was taken.

However none of the above means that the charges are lawful.

[Micky the Hippo]

doh

 

learn me to read proper

[sallysas]

I would have crossed my fingers paying in on a Saturday but don't banks check for incoming monies first at the start of each banking day? Just a thought..............

[Micky the Hippo]

I know for a fact that Smile at least check for debits for the day ahead of credits from the day before

 

anyway as a previous poster has said, DDs often go out early if they fall on a weekend