Found out at the Asda my card was declined on Sunday a bit embarrasing but no big deal, got home internet banking showed i was £451.00 in debt.!!
Pay day was Thursday before good friday and the standing order usually comes out on the same day for the bills but was delayed for 8 days due to bank holidays, Totally my fault thought i was well off so transfered some cash to savings account.
But what bugs the heck out of me is the HSBC pay out when i have no overdraft set up and pay cash out & then can charge me £25.00 per day for when im overdrawn!!!
Luckily not been overdrawn in over 10 yrs so got away with it but no overdraft should mean no payment, they say it's on goodwill.!!
Went in today to sort out the mess and told them i want no overdraft and no payments paid if no cash in account.
Then tonight some snot nosed little pfd phones up to tell me the above and i chewed his ear off for paying out when no funds in account.
Would you want them to stop payment so you know straight away and can sort it?
Don't want overdraft hate owing anybody anything strictly not having one.
Last edited by: VxFan on Tue 17 May 11 at 01:28
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LloydsTSB have a system whereby they text you if you risk going overdrawn. I've never tried it as my primary current account isn't with them, maybe time for a move. Alternatively SMILE have a 500 pound free overdraft cushion....may be worth thinking about binning HSBC ? I had a dreadful experience with their stupid Indian based call-centre last week over a letter I received (turned out to be a dormant work related account which htey'd sent to my old address and got re-directed here), which only got sorted in the branch.
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There's not much I don't know about being in trouble with banks...
>> HSBC ... can charge me £25.00 per day for when im overdrawn!!!
>> Luckily not been overdrawn in over 10 yrs so got away with it but no overdraft should mean no payment
>> Don't want overdraft hate owing anybody anything strictly not having one.
Take the overdraft, then behave as though it doesn't exist. It will save you the stress and phone calls if it happens again.
When I worked for the Midland 20-odd years ago, they routinely allocated their responsible current account customers a "buffer" overdraft limit of several hundred pounds to cater for precisely this sort of event - I don't know if this is still the case.
It wasn't mentioned on statements or ATM balances but showed up on the internal computer network on the "available" balance: e.g. if you had £1000 in your account you would see an account balance of £1000 and an available balance of £1000 on the ATM screen but the staff would see an account balance of £1000 and an available balance of £1800 on their desktop terminals.
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First Direct offer a free overdraft facility, think it's either £250 or £500. I had need of a bigger o/d facility a few years ago when my Dad died, they set it up without hassle and I've kept it on, it's agreed yearly.
As Dave rightly says, know it's there but assume it isn't; it's a useful safety net if something like your scenario happens.
WARNING.... exceeding the overdraft limit is VERY expensive!
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It's nice to have the overdraft facility available, it can make car changeover times much easier for example.
When we bought SWM's C2 we knew we'd be running close to the wind for a couple of weeks, so arranged an extra overdraft, we didn't need it as it happens but the peace of mind is priceless.
Always found Barclays to be good for this type of thing years ago, but since changing to Halifax a few years ago, they have proved themselves equally flexible and competent*, and pay me a fiver a month for paying my income into the current account.
*apart from their call centre operative who mis-sold me (lied) some sort of security cover for my Halifax credit card, not supposed to cost anything for fully paid up balances, it does so it gathers dust.
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On the very rare occasions when this has happened to me, my local Lloyds branch has phoned me up to warn that there is a possibility of an unclosed shortfall at the end of the day, and do I need to move in some funds to stop that happening.
Overdrafts seem to be triggered by the day, not the hour.
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I have an overdraft facility. It costs nothing when not in use, so why not have one!
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>> I have an overdraft facility. It costs nothing when not in use, so why not
>> have one!
>>
And some Banks allow a free buffer of £250 or more.
:-) I think the OP is ranting at the banks when the problem was his own doing, especially as he missed Falkirk Bairn's advance warning "do not get caught by late charge fees of £12.00 etc. You have been warned!"
www.car4play.com/forum/post/index.htm?t=6031&v=f
Last edited by: John H on Tue 17 May 11 at 09:45
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, Totally my fault thought i was well off so transfered some cash to savings account.
I know i was in the wrong but what has peed me off is the bank paying out money when the account is empty of funds then they CAN charge me £25.00 per day for funds overdrawn.!!
No cash in account no funds get paid it's simple.
I hear what you have said on the safety net issue of the overdraft and for the pleasure of having it for the peace of mind, However i have survived 24+ years without one and been carefull untill this mishap i still don't want one.
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>> I know i was in the wrong but what has peed me off is the
>> bank paying out money when the account is empty of funds then they CAN charge
>> me £25.00 per day for funds overdrawn.!!
>>
>> No cash in account no funds get paid it's simple.
you do know that if the Bank refuse to pay due to lack of funds, that will attract a fee for EACH failed payment? And what about if the bank refused to pay your mortgage due to lack of funds?
They were doing you a favour, and not to earn an overdraft fee.
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Yes i know they say if you don't go overdrawn in 6 months there is no charge.
As for mortgage it's not with them, Its just a paying in account for wage and thats it i use for spends.
Stuck in my ways zero i don't like debt nor do i want a overdraft & the credit card gets only used to book holidays etc.
Im a cash man.
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>> No cash in account no funds get paid it's simple.
>>
Banks charge for that service, and you could get a bad credit record from a rejected payment.
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>> No cash in account no funds get paid it's simple.
Stick to "no cash in account don't try spending it, it's simple".
Be glad they paid it out.
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>> what has peed me off is the bank paying out money when the account is empty of funds
As Zero says, they were doing you a favour. They would have looked at the conduct of your current account, seen that there were no previous adverse transactions (and that you were in credit in another account held with them) and made the payment(s) on the basis that it was the lesser of two evils for them.
If they'd bounced payments, you would still have been charged by the bank as well as by the recipients*, plus you would run the risk of having your phone/internet/Sky/whatever suspended. You'd also have incurred a black mark against your credit record which might mean you might not qualify for a car loan/mortgage with the bank at some point in the future. Also, if all of that happened you'd be more inclined to change banks out of pique.
Martin Lewis (moneysavingexpert) constantly points out that banks exist solely to make a profit.
* I've had situations in the past where a direct debit of £23 bounced, incurring a bouncing fee of £38, plus a fee for being overdrawn that day of £25, plus a fee for being overdrawn at least once in that calendar month of £25, plus a fee from the recipient of £25 for late payment. Total cost to me £113 to not pay a £23 bill. You don't want too many of those.
Last edited by: Dave_TDCi on Tue 17 May 11 at 11:26
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I recall being very irritated by the bank (HSBC) who when presented with a cheque for £n,000 on my account, transferred the cash from my savings account in order to pay the cheque.
On another occasion when faced with a charge for £50 that took me over my agreed (free) overdraft they didn't think to transfer the cash, instead charging me £25.
The particular irritation was that the £n,000 cheque was a fraudulent cheque... and if they hadn't transferred the cash it would have bounced and not been paid. Happily they did spot the signature didn't match and called the money back (leaving it sitting in my current, not savings account).
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This business of ' bouncing ' direct debits is one reason I do not have many. Those I do have are very small, around a tenner, apart from house/contents insurance, which is with the same bank anyway.
I do have two larger, annual, DDs British Oxygen and Camping Club but I can always send them a cheque on another account if I'm short at the time.
The Halifax gave me a £500 o/d but I've never been that close to use it. It's a handy buffer, though.
I use cards a lot but never pay any interest. They're handy for a bigger purchase.
I will buy a newer slushbox diesel Vitara later in the year and I'll use a card for that....one has a £9K limit. My pal bought a £16K plumber's Bentley on a single CC last year !
Ted
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I bought my car on CC. I negotiated the price first, and then said I would pay by card
"Yes sir, there will be a 2% surcharge"
"Then there will be no sale"
I didn't pay the 2%
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I do that as well Zero - I wanted the air-miles !
Smile actually transferred money from my savings account on one transaction to stop going into overdraft - they phoned me. I used the wrong card for some reason...
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"Martin Lewis (moneysavingexpert) constantly points out that banks exist solely to make a profit."
Yes silly me, an honest Jo. I thought if a bank advertised 'your account' in a later advert with a better interest rate, you would automatically get that without doing anything. Right? So no need to go to all the bother of considering where to shift the money to.
Wrong! In reality, it took me 12 months, until after further interest payments, to discover I was stuck with the old rate! Worse, the bonus had expired. And so was Mrs busbee. Crooks.
To help add to the customer confusion, it was made clear that you could have only one of those accounts. So no opening another and transferring the money, right?
Wrong! After much effort, I discovered that with a particular Nationwide web account (Now that they have stopped using the small print --- not applicable to accounts taken out before XXX --- you could go through a process of applying for the account again and, eventually, it reached a point where it said, 'do you want to transfer the existing account monies'.
Anyone know if you can do that with accounts on other Bank websites, LLoyds, for instance?
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In trouble with the bank. - R.P.
