willman Posted September 7, 2011 Share Posted September 7, 2011 I mean honestly what can be done - not what do people assume can be done. Scenario of a close friend. £350 o/draft facility on bank account. This months salary was short one weeks pay,this meant insufficient funds to pay all direct debits from the account immediately. The bank - bounced 3 small direct debits,by small i mean close too or below the £15 fee they charge for bouncing them,as they would have gone over his o/d limit. However they paid a large loan repayment sum(larger than his overdraft) which was payable to themselves. He has 2 more d/d due to be taken out on the 22nd.All the other payments were taken on the 2nd. So they paid the biggest first which exceeded his o/d then refused the others.The combined smaller d'ds would have left him with money in the account for the rest of the month. The crux here is -potentially 5 x £15 for bouncing and £6 a day for exceeding his overdraft limit(this will equate to £121) OR 1 x£15 for bouncing the loan repayment and no overdraft fees incurred. He would then have paid 2 x loan repayments at month end. I've urged him to complain,he rang the branch and was told it was a "computerised" decision on which to pay and they weren't willing to change anything. Link to comment Share on other sites More sharing options...
Obelix Posted September 7, 2011 Share Posted September 7, 2011 The bank acted properly in so far that they are charging. I'd certainly be complaining like anything about stiffing him for the charges that way. Now you say that he was short one weeks pay - is that an error by the employer or is there another reason? If it's a mistake then the employer is in breach of contract and they should make good the bank charges. Link to comment Share on other sites More sharing options...
willman Posted September 7, 2011 Author Share Posted September 7, 2011 The short wage was not anyones fault - just a change in jobs and pay dates. He doesn't really have an issue with the charges,they are what they are, but should they pay a large amount to themselves,which exceeded his od facility? After all his limit is either £350 or it's more,surely they can't have it all ways. Link to comment Share on other sites More sharing options...
truman Posted September 7, 2011 Share Posted September 7, 2011 The short wage was not anyones fault - just a change in jobs and pay dates. He doesn't really have an issue with the charges,they are what they are, but should they pay a large amount to themselves,which exceeded his od facility? After all his limit is either £350 or it's more,surely they can't have it all ways. Is there anything in the T and C's that say how payments will be taken out? If I were the bank I'd take my money out first wouldn't you? If he knew he was going to be short a week then his best bet would have been to talk to the bank and explain the situation...be pro-active....he may have been able to come to some agreement with them then.. Link to comment Share on other sites More sharing options...
willman Posted September 7, 2011 Author Share Posted September 7, 2011 Is there anything in the T and C's that say how payments will be taken out? If I were the bank I'd take my money out first wouldn't you? No. But the t&c's state that the deductions are at their discretion. So how can they decide to make him exceed his o/d by £84 and then tell him that they won't pay others or he needs to credit his account. I could understand exceeding his limit by a couple of quid to make a payment. But this has really stiffed him financially this month. He tried to cancel his direct debit for the loan payment when he knew but he was told he needed 3 days between cancelling and date of the mandate,which he didn't have. Paid 31st,deductions made 2nd. Link to comment Share on other sites More sharing options...
Bulgarian Posted September 7, 2011 Share Posted September 7, 2011 Banks are there to make money, not be your friend, they will screw you over at every opertunity if it makes them a few quid. Link to comment Share on other sites More sharing options...
truman Posted September 7, 2011 Share Posted September 7, 2011 No. But the t&c's state that the deductions are at their discretion. So how can they decide to make him exceed his o/d by £84 and then tell him that they won't pay others or he needs to credit his account. I could understand exceeding his limit by a couple of quid to make a payment. But this has really stiffed him financially this month. He tried to cancel his direct debit for the loan payment when he knew but he was told he needed 3 days between cancelling and date of the mandate,which he didn't have. Paid 31st,deductions made 2nd. We all know what banks are like that's why he should have spoken to them earlier..I'm assuming he knew he was moving jobs in advance..? Link to comment Share on other sites More sharing options...
big_g Posted September 7, 2011 Share Posted September 7, 2011 How much did the large payment breach his overdraft by? Or, was it that the £15 bank charges put him over his limit? Link to comment Share on other sites More sharing options...
willman Posted September 7, 2011 Author Share Posted September 7, 2011 We all know what banks are like that's why he should have spoken to them earlier..I'm assuming he knew he was moving jobs in advance..? Your probably right. He just can't understand how they decide to allow £84 over his limit as they're paying themselves but not £89 when his d/d for his water rates comes out. I'm sure he'll just have to move banks when he's sorted himself out. Link to comment Share on other sites More sharing options...
Bulgarian Posted September 7, 2011 Share Posted September 7, 2011 There is no reason to charge for any of these things, computer A asks computer B for money, computer B says there isn't any, end of the transaction, where has the cost been incurred ? Is the charge to compensate the computers for the inconveniance ? Link to comment Share on other sites More sharing options...
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