Bank Charges

[charlie98u]

I signed on to online banking today and have noticed my acount is now overdrawn due to bank charges.

 

I don't disupte the charge although I think £30 is a bit steep for missing one direct debit.

 

The problem is I wasn't notified about this charge coming off. I would have left in money if I had been. The direct debit bounced in October and to be honest by now I had forgotten all about it.

 

I bank with Nationwide. Are they required to notify you when a charge is coming off? I know about the charge amounts etc as they gave me that when I opened the account. shouldn't I get a letter telling me when they will take this?

 

Also the date on the charge is yesterday but it hasn't been taken until today. I took my last £20 out of the bank yesterday so I know it wasn't on then. Does this mean they can charge me more for not being able to get to a branch and get this sorted until tomorrow?

 

 

Thanks

[buzby]

It's online banking, so no need for a letter. The fact the DD hit and had to be rejected by them remains the reason why they are profitable. IF you play your finances close to the wire, a DD is the last thing you need - you lose control over your finances and the bank and creditor charge you dearly for your lack of funds.

 

You may find they'll send you a letter next week, and it is this they'll make the £30 charge for. If the creditor taking the DD didn't advise you properly, you may be able to argue this and get it refunded - but this only works once.

 

Ditch DDs ASAP, they're simply bad news for everyone except the banks.

[flash]

Hi, You can get some banks to notify you by text or email if you are likely to go into the red.

However, I noticed recently that a strange thing happened when I had money transferred by online banking into my account the day prior to a debit card payment that I knew was coming off. I checked the balance of my account and it showed the transferred funds and a positive balance. The next day I checked my balance and the amount I had transferred the day before had suddenly been credited the next day according to the records. The debit card payment which had not shown on my balance the previous day had suddenly appeared on the previous day. The result being that the bank could charge me for being overdrawn (£18.00) and then a further £30.00 referral fee. This looks like a fraudulant act to me.

 

I intend to take this matter further. The other thing is that I have noticed my balance varying negatively when no transactions have taken place and then the funds suddenly appear a day or so later.

 

One of the annoying things about digital banking is that quite often a debit card transaction does not show up on the balance for some days whilst others are reflected in the balance available immediately.

 

Does anyone else have any similar experiences?

[buzby]

Yes, but there is a factor you overlook. When a debit card authorisation is made, the funds are earmarked but not debited. This means the card is checked that the funds are available, and the amount you could remove in cask from your account reduces, but the funds are still there. The transfer of funds will take place on the next business day, and the actual funds removed and paid to the requesting merchants account. This is the same process used by credit cards, which it copies.

[flash]

Even if funds are not available you can still purchase petrol from ASDA. So it would seem that there is not a check on the available funds at certain stores. Thus, a debit card effectively becomes a credit card. This encourages going over your limit and attracting those excessive charges.

[buzby]

There is no mandatory 'live' card check - if the connection is down or busy, a PIN validation is acceptable. The responsibility is with the consumer if they use it for a debit where no funds exist. Check my other thread on the current Chip & PIN debate on the 'yes card' anomaly. It most certainly does not turn it into a 'credit card', just a 'deferred debit'.