Taking Standing Order before date

[natalie]

I had set up a Standing Order for my rent to go out today (14th). Yesterday I transferred money into the account (from a savings account with the same bank so it is immediately available) to make sure it was covered.

 

However, the funds for the rent had already been removed from the account, they have bounced the Standing Order and have charged me for it.

 

I'm fuming, the reason I pay by Standing Order is so that I control the payment date. My landlady has no problem with this so how can the bank pay it before the payment date?

[Guest wino]

I would be straight on to the bank asking them the question. That is just not right.

[kurvaface]

I thought that the money goes on the day of the standing order. Some banks have a very peculiar "ear marking" system that seems to take the money before it's due to go - lloyds for example.

[natalie]

Well that's what I thought, but the amount of the standing order is back in my account (online banking) and when I rang them to find out what was going on, I was told it had bounced and they had charged me.

 

They couldnt answer why it had gone early (thats the way the system works, its automated) but any requests to refund charges must be made to the appropriate dept in writin.

[kurvaface]

That is bananas.

 

When we left Lloyds, they let our personal account go 4 pence overdrawn after making a payment we instructed them not to make because we were making it from our new bank. Over the following month, without us realising it they applied £230 worth of charges to the account.

 

They refused to shift them..............

 

Until I went into the branch and kicked up a proper stink in front of other customers....well funny innit.

 

How much are they saying they will charge?

[nunnyrose]

I may be wrong but I thought that 1 of the differences between s/o and d/d was the day it's be paid.

If a d/d falls on a bank holiday or weekend it's made the working day before its due, with a s/o its the working day after ? I've just checked with a few of the banks websites and this seems to be the case.

[craigers]

nunnyrose, i think you are perhaps a bit mixed up?

 

if a direct debit is due on a bank holiday, then it will be taken the next available working day. it is never taken before.

 

i'm not so sure about standing orders. all i know is that with my SOs due on the last day of the month, when it is a weekend/bank holiday will be taken the first working day before it is due.

 

most banks do seem to ring fence funds in accounts for these payments, which reduces the available balance, but the payment isn't actually processed.

[royboy68]

The weekend thing is irrelevant as the 14Th was a Monday. Surely as the banks keep telling us regarding other payments, when you make a request they will decide on that day if they will honour it. As the op had the money transfered before the day and the request was for that day then its the bank that has made the mistake and all funds should be automatically returned to the ops account. Lets go one further and say that as they have removed money on a certain day without a request then how about a £35 fee from the bank to the op.

[yourbank]

I had set up a Standing Order for my rent to go out today (14th). Yesterday I transferred money into the account (from a savings account with the same bank so it is immediately available) to make sure it was covered.

 

However, the funds for the rent had already been removed from the account, they have bounced the Standing Order and have charged me for it.

 

I'm fuming, the reason I pay by Standing Order is so that I control the payment date. My landlady has no problem with this so how can the bank pay it before the payment date?

 

Natalie the weekend does have an effect on payments and transferring money into the account over the weekend means you have to get the bank to override any automated decision based on funds from the previous WORKING day ie monday to Friday. I know it SHOULDN'T matter but it DOES unfortunately.

[natalie]

If that was the case I would understand, but the payment date was a Monday, they took the money out on the Sunday.

 

Still no word back regarding refunding the charges.

[locutus]

"Track Record" Any reason for this nonsense? You need a rename to "Broken Record"?

Edited December 19, 2009 by locutus
NOT withdrawn :p

[yourbank]

If that was the case I would understand, but the payment date was a Monday, they took the money out on the Sunday.

 

Still no word back regarding refunding the charges.

 

What was the normal date of the Standing Order? I have seen occasions when the payment has shown as going out early but was in fact the right date. Furthermore, different banks update their systems at different points over the weekend so that Saturday to Monday payments will show as going out(RBS Group accounts ie natwest/rbs would show on the Saturday, A&L I believe update overnight saturday, LloydsTSB update Sunday night and others may update prior to the mondy).

[natalie]

The payment date was the 14th (Monday) I made the transfer on 13th (Sunday) at about 3pm, and the payment had already gone out and been bounced!