Direct debit question

[Mr_J_Bravo]

Hi

 

I've got a payment coming out of my account on the 1st of the month.There's not enough cash in my account to pay it,however,on the 1st there's an incoming payment due in my account that would cover the outgoing amount.Will I be ok?I'm worried that the outgoing payment may be requested before the incoming money comes into my account resulting in a charge.

 

 

Many Thanks

[xfox3x]

My bank does all the debits and credits at 0200 hrs. Don't know if all banks are the same though. Might be worth a phone call to ask them to delay the payment until the credit has been accepted.

[sTaGeWaLkEr]

AFAIK if the D/D isn't collected on the first application, they apply again on the same day. I think you should be ok as long as the payment definitely goes in on the 1st.

[rubydazzler]

HSBC will cover payments out, provided you're back in credit by close of business the same day. No bounced cheques, ddms or charges. So if you're with them, you should be ok.

[kimberley123]

Id give your bank a call just to double check.

[staninoodle]

do all your direct debits by standing order,that way YOU control the amount taken out,not the payee

sorted!

[Hairyloon]

I used to bank with Abbey National.

The way they did it was:

Process biggest outgoing transaction -> Insufficient funds. -> Add Charges.

Process next largest outgoing transaction -> All funds already taken by first transaction. -> add charges

Continue processing all outgoing transactions.

THEN refund the transactions for which there were insufficient funds.

THEN process the incoming funds which would have covered the outgoing transactions.

And oh dear. All these charges have taken the account overdrawn. Best slap on an unauthorised overdraft fee as well.

 

Don't expect your bank to be reasonable.

[matsalleh]

I used to have an account with Loyds.

I was working in Bahrein at the time and only used this account to pay some insurance.I used to transfer just enough to cover these payments the day before.One month there was a delay somewhere and the money was not transferred until 2 days later.About a week later I received a letter stating I was 1s3d overdrawn(1964!) but he had put a 1s6d stamp on it.I sent a reply stating that in all this time this was the first time this had happened and was not my fault.I also said that if had put the stamp money in my account I would be 3d in credit.He sent another letter (1s6d stamp) saying they would not do that again.I then cancelled my account.

[Mr_J_Bravo]

Thanks to you all for your replies.Im with Santander,my accounts just been transferred to them from Alliance and Leicester. I'll give them a call.Hopefully they arent like your bank Hairyloon!!

Stainnoodle,your tip has been taken on board!a lot more flexible that way.

[Grandad.Malky]

My bank does all the debits and credits at 0200 hrs. Don't know if all banks are the same though. Might be worth a phone call to ask them to delay the payment until the credit has been accepted.

 

I am with TSB and in a similar situation I was told the books must balance at the close of business, will the incoming payment clear straight away seems to be the problem for the OP.