I didnt't know this. Do you?

[kazdoc]

A couple of weeks ago I recieved a bank charge as a DD came out of my account 3 days early. I waited for the bank to open and then paid the appropriate funds in, thus not making me overdrawn, but I still got charged:mad:

 

Lady on phone was quite rude and did not explain things very well, so I went into the bank and spoke to a lovely lady who explained things much better, but what she said surprised me.

 

In a nutshell; It all changed approx 5 months ago. If you have a DD coming out, then the funds need to be in your account the day before. You can no longer pay them in on said day as I have always done. Whereas before, if the funds were not there at first presentation (usually about 5am), they would then be represented at about 4pm, giving the customer time to pay them in. This is no longer the case and the DDs are now presented only once, early in the morning, so if the funds are not there then that will always incur a bank charge.

 

Goodness, knows why they changed this, its a real inconvenience!

 

She also said that if a company tells you that a DD is to come out on a certain day, then it must come out on that day. If they present it early and this causes you a penalty, then that compnay are responsible for that and you must take it up with them.

 

So I guess my new thread will be entitled "Kazdoc V Medway Council"

 

Has anyone tried to claim like this before? Or am I barking up the wrong tree?

[gni03349]

I havent tried it, no, but what you were told is correct in that if a company states they will take a pyment on a certain day, then they cant just change it to suit themselves, unless they tell you in writing. The ambiguity lies when they say "on or around ". They could argue that 3 days before is about that date.

 

It's why I hate DD's... they take what they want, when they want, and leave the customer to do all the chasing afterwards if there is a mistake, without the slightest regard for their circumstances.

 

It would be worth checking your DD paperwork to see if it says the dreaded "on or about". I would complain as loud as you can though to the council to get your charges refunded (and even contact your local councillor).

[JonCris]

If anyone seeks an earlier than agreed payment of a debit without at least asking you 1st then they breach the DD guarantee & are liable for any losses you may suffer as a result

 

This goes on a lot. Some even attempt to take more than one payment on the same day & when it goes wrong try to blame the client

 

This sort of behaviour is one of the best reasons to not give outsiders access to your bank account which is effectively what you do when you authorise a DD

[Bookworm]

I'd also say that the lady who told you things changed 5 months ago is talking out of her lovely backside, as every single bank I have been with ALWAYS have had it in their T&Cs that cleared funds must be in the account before the end of the previous working day. Furthermore, it is well known that transactions are processed at about 1-2 am (hence the previous working day part) and I have never heard of them being done a second time in the day, I have to say. :-?

[JonCris]

I have BW in fact I have evidence, via the customers statements, in at least one case that a bank allowed the SAME DD to be presented 3 times in one day thereby incurring 3 separate penalty charges totalling £101 & this didn't happen just once but on a number of occasions throughout the year

 

It was so bad the victim went from being £4 overdrawn to £700 in 14 days as the charges for more & more unpaid DD's accumulated to the extent that by the time he realised what what was happening he was unable to stem the flow.

 

The only reason he found out when he did was when a creditor wrote telling him they hadn't been paid.

 

As for the bank nothing! which is of course is why they changed their T's & C's allowing them to do this. not sending letters telling customers of their unpaid DD's

Edited May 12, 2008 by JonCris

[Bookworm]

[JonCris]

My exact reaction BW & such disbelieve that I had a bank insider have a look & he confirmed my understanding that indeed they had permitted the same DD to be presented 3 times on 1 day on a number of occasions incurring 3 separate penalty fees each time

[kazdoc]

Something has defintely changed. To give an example:

My sofa loan comes out 3 weeks after payday, so I cant always guarantee that the funds will be sitting there waiting every month! Usually if I know that there is going to be a problem, then I just pay the £50 in on the day (always the 11th). By close of business, the DD will show up on my internet banking whereas there will be nothing until the funds are in. I have never incurred a penalty for doing this until now.

[queen74]

wow you all seem very well informed on this process,please help me!

[kennythecelt]

Hi Queen

 

we will soon get you up to speed.

 

Just start your own thread using the button at the bottom of the page.

 

Tell us what has happened, how we can help.

[kazdoc]

Yes, Queen. I used to be clueless too!

Just read, read, read.

People will help you more if you help yourself and try to learn. I was up to speed within a week.

[qwerty101]

It used to be that Direct Debits had 2 runs, 1 in the morning and 1 in the afternoon. Approx around last June/July that stopped.

 

The official rule is suffucient cleared funds need to be available in the account the day before any dd/so comes out.

 

Direct debits leave the Halifax between 3-5am, debits before credits

[kazdoc]

Qwerty101:

 

Is this just a Halifax thing or does it apply to all banks do you know?

 

Today I opened a new current account with a different bank. Halifax account will be closed within the month:mad:

[sillygirl1]

It applies to Nat West, they like you to have the money in the account the day before - they never did quite manage to explain how they 'allowed' one customer to take a DD out 14 days early just before Xmas one year and leave me with no money - I got that lot back pronto thought as I threatened to take the person responsible in the bank and in the other company to court.... they said I couldn't and I said I could prove theft had happened... that an unnamed person had taken money out of an account before the legally due date.