Direct Debit Problem

[Lady Python]

To cut a long story short, I lost my job through no fault of my own - company went bust.

 

I've now got a new job which I started on Monday.

Having no money except for my three tiny pensions (one was cut in half today, reducing it from £75 per month

to a measly £38 without any warning whatsoever but that's another story for another thread - and yes, I've already complained),

 

 

I had no option last week but to take the money I had set aside to cover a direct debit to use it for fuel for the car

as I have to travel a distance now to get to work (and we had to eat too).

 

The direct debit was due out on the 26th September, which was a Sunday.

I withdrew the money on the Thursday 23rd September. Strangely, this transaction has showed up like this:

 

26 Sept HANCO25SEP

 

The date above does not tie in with when I withdrew the money.

 

Now, RBS are charging me for an unauthorised overdraft at a rate of £6 per day.

I will get my first week's salary on the 10th October which means they're going to help themselves to at least £60 of that.

 

I can't afford to lose that kind of money.

I spoke with a very unhelpful young man who said they can recall the DD

- or I have to pay the bank charges and since they already refunded me bank charges (their fault not mine)

of £6 a couple of months back they can't (or won't) refund any more.

 

I don't mind paying the charge of £6 for the missed DD

but object to paying £6 per day on unauthorised overdraft charges.

There was no money in the account so they should not have paid the DD.

 

Advice please on how I can deal with this would be greatly appreciated.

 

As for having an authorised overdraft, I did ask for a small one a few years ago and got turned down.

[Bazooka Boo]

IMO, I would cancel the DD, depending on what it is actually for??

 

Then email/write to the bank regarding their bank charges, and demand a refund under 'hardship' rules.

 

If you can pay via standing order then do so, as this is something you can control, DD's are a pain in the backside and abused left right and centre.

 

Which bank is it?

[dx100uk]

BCOBS

 

 

rbs link off of that

 

 

dx

[Klandestine]

...

The direct debit was due out on the 26th September, which was a Sunday.

I withdrew the money on the Thursday 23rd September. Strangely, this transaction has showed up like this:

 

26 Sept HANCO25SEP

 

The date above does not tie in with when I withdrew the money.

...

 

Is there any chance you have made a mistake?

 

The 26th September 2014 was a Friday, not a Sunday

The 23rd September 2014 was a Tuesday not a Thursday

 

And the 25th September 2014 was a Thursday and is the date shown for the withdrawal, so that would make sense if you withdrew the money on Thursday

 

There was no money in the account so they should not have paid the DD.

 

No bank will manage your account for you like this. They are just following your payment instructions at the end of the day. And if you haven't got the funds, as long as the bank are comfortable with the risk, they will pay it.

 

As for having an authorised overdraft, I did ask for a small one a few years ago and got turned down.

 

It could be worth checking again now?

[biggeorge]

I had a problem very similar as this, Natwest.

Had a £100 overdraft and a DD came in and the bank would not pay it but charged me £6 for the failed DD.

Now this DD was only short by a few £s but was unpaid.

They then took the £6.00 failed DD charge putting me over my limit.

 

I complained that if they can put me over limit for themselves then why not when the DD came in.

 

This ended up as a 6 month argument with me going to the FOS and winning, By this time my balance was over £500 overdrawn.

Ended up with my account back to how it was and £100 compo.

 

Best way if you don't have enough funds in the account is cancel the DD.

 

Is this Natwest by any chance?

If so have you signed up to their text alert service, You should be given time to cover any over limits before end of day.

This is where Natwest failed me and charged me for 3 days at £6.00 per day before I knew anything about it.

 

George

[Lady Python]

I had a problem very similar as this, Natwest.

Had a £100 overdraft and a DD came in and the bank would not pay it but charged me £6 for the failed DD.

Now this DD was only short by a few £s but was unpaid.

They then took the £6.00 failed DD charge putting me over my limit.

 

I complained that if they can put me over limit for themselves then why not when the DD came in.

 

This ended up as a 6 month argument with me going to the FOS and winning, By this time my balance was over £500 overdrawn.

Ended up with my account back to how it was and £100 compo.

 

Best way if you don't have enough funds in the account is cancel the DD.

 

Is this Natwest by any chance?

If so have you signed up to their text alert service, You should be given time to cover any over limits before end of day.

This is where Natwest failed me and charged me for 3 days at £6.00 per day before I knew anything about it.

 

George

 

It's the Royal Bank of Scotland.

 

 

I had to make a decision quick.

 

 

Either let the DD go through or take the money out and secure a job.

 

 

No contest there - the job won.

 

 

As it happens the matter is now resolved thanks to my brother.

 

 

He lent me enough money to see me through until I get my first wage a week on Friday.

 

 

I'll still get stung for £12 at the end of the month but that's better than £60.

 

My problem apart from unexpectedly losing my job is that because I have 3 small pensions totalling £270 a month,

I only qualified for believe it or not £5 JSA.

 

 

It would have cost me more to go into town to sign on than it was worth

so apart from these pensions I had nothing else coming in.

 

 

The job I've got now isn't the best job I've ever had, office work and repetitive

but the hourly rate is quite good and they're a friendly bunch of people to work with.

Hours are perfect for me too.

On the downside I have to travel quite a distance to get there.

 

One thing I've discovered since my husband died just over 3 years ago,

widows get a raw deal in this country, especially those of us over the age of 50.

 

Anyway, thank you all for your replies

[Bazooka Boo]

Contact the bank and lodge a complaint about their bank charges, quite how being overdrawn attract £6 a day charges is beyond me, and the banks make

billions out of us fabricating interest rates etc..you never know, they may refund them, if not you can always vote with your feet and close the account.

[Klandestine]

OP, if you do decide to contact the bank again to try and get them to waive the charges please do not raise silly issues and claim that they are "fabricating interest rates".

 

You should be polite and keep in mind that you are relying on the good will of the person on the end of the phone.

 

Some additional advice from one of the posters over at MoneySavingExpert: http://forums.moneysavingexpert.com/showpost.php?p=66600495&postcount=7

 

..is beyond me...

 

Evidently.

 

You're being naive in thinking that interest rates and charges are just fabricated.

The £6 a day charge reflects the risk involved with unarranged borrowing.

[Bazooka Boo]

Evidently!

 

You know best, carry on!

[Lady Python]

Although I still feel, with no money to cover the DD in the account, they shouldn't have paid it, overall I haven't had that many problems with them. The staff in the branch (it's a small branch) are usually very friendly and helpful. Perhaps the young man I spoke with is new there, I certainly didn't recognise his name or voice. I have to go into town next week so I'll pop in and have a word with the bank manager and see what he says. Thankfully, I'm working again now (only a temp job but it's supposed to be long term, possibly becoming permanent, but hey, it's a job) so that situation shouldn't arise again, at least for a while.

[BRIGADIER2JCS]

Evidently!

You know best, carry on!

 

 

You are of course spot on Boo, the banking culture of " let's think up a charge for something and see how much we can get away with and charge interest upon " stinks and always will.

[Bazooka Boo]

Sorry, had a long day yesterday and was in a very flippant argumentative mood...

 

Perfectly reasonable LP, if this is a small local bank and your happy to continue using them then do so.

 

The cynic in me says that the reason why they allow your DD to go through when they know there are no funds in your account

to cover it, is purely so they can make a bigger profit out of you, rather than hit you with a one off charge for a failed DD, they can

charge you everyday.