Returned Direct Debits & Standing Orders

[billy_79]

I've been caught out a couple of times by direct debits and standing orders leaving my account when there have been insufficient funds (mainly to Barclaycard). Because of this, they have then been returned as unpaid. However, on each occasion I have realised and immediately made a deposit into my account the same day by faster payments (usually first thing in the morning on the day concerned, and the deposit shows almost instantly in online banking).

 

But it seems that this is too late and the payment is still returned. I have phoned up each time, again on the day, and asked if they can reapply the DD, but apparently they cannot, so each time I've reapplied the payment by other means (faster payments). But I still get charged by both parties for the reversed dd. This seems a bit harsh, is there anything I can do to not get charged in this situation?

 

Looks like I've fallen foul of this again today - I transferred money in at 1am, but the DD had already left my account, taking me £3 beyond my limit. No sign of it being returned yet...

[slick132]

Hi Billy,

 

When you run your a/c so close to it's limit, you're likely to get caught out by this timing scenario now and then.

 

If this was a one-off, you could get Barclays to waive the default fee once, maybe even twice in a year. Any more than that and they'll hit you with a charge every time.

 

There's nothing you can do about it apart from keep a closer eye on your a/c balance.

 

There is some good news however if Barclaycard or any other credit card have charged you a penalty for late pay'ts, missed pay'ts, unpaid DD's or over-limit fees, you can reclaim the full amount of the charge. Read other threads here about the subject and you'll see how others get their charges back with compound interest on top (from BC but not necessarily other CCard issuers).

 

Edited June 11, 2012 by slick132
typo

[billy_79]

Thanks for your comments. I don't usually run my account close to the limit, there's usually plenty in there to clear payment, but I've had some huge CC bills the last couple of months, and I've been a bit slow to transfer funds in to cover the DD. I've had my Barclays current account for 15 years and never had a bounced payment or charge until last month, but they certainly weren't budging when I phoned up to ask if I was going to incurr a charge.

 

One of them was to Barclaycard, who then charged me two more lots of £8 one for the returned DD, and another for late payment - even though I phoned up and made payment immediately, still on the due date. (They later said that they wouldn't be charging me the late payment fee, still waiting to see if they take it anyway). So I guess I could try and recover the Barclaycard charge, but it's a lot of chasing for £8!

 

It looks like this time I caught it just in time as they payment hasn't been returned (yet). They must take DDs at mignight on the date they are due, and return unpaid ones before 9am, so you don't get any chance to make things right on the day. Guess they've got to fund Bob Diamond's bonus somehow!

[slick132]

That's odd ! I thought the BC penalty fees were £12 a hit, which is the max set by the OFT for such fees.

 

BC will normally refund all penalty fees if you write requesting this. It's only when you seek compound interest on top that they'll be obstructive, until you take court action against them.

 

But the bank charges are the higher ones and you will not get these back unless it's a one-off.

 

Monitor the a/c as best you can, to avoid paying them the penalty charges.

 

[billy_79]

My mistake, the BC fee is £12 and the Barclays fees are £8 each (I opted out of their 'reserve' facility).

[slick132]

OK, that makes sense now.