Banking rant - Direct debits and the weekend

[Rooter]

So, i log onto my bank this morning to see it overdrawn.. That's odd i think. Then i see my bank have taken 18 direct debits out! All due on the 1st (Monday) the same day i get paid.

Anyone else have this problem? is it legal for them to do this? I was given a load of pre-scripted rubbish about something called "Weekend provisioning" which i googled to no effect. So they can basically take my money early, but they wont give me my money early and am now skint for the weekend.

 

[Rooter]

No I know they are in the wrong! they just called me back, very apologetic credited my account with a temporary credit of the full amount of the direct debits and gave me 75quid compensation!!??!

 

[Spartacus]

One of the problems with DD. Permission to take yer cash when they like.

They must be feeling the pinch.

 

[Hobbit]

Had the same argument with my bank in the past, and won each time. Eventually, I moved all my DD's back a few days away from pay day = sorted.

 

[Spartacus]

They should never take your hard earned on weekend day as when paying in a cheque they don't count weekend days as clearing days.

Glad you got sorted as you can't mess with a man's money!

 

[SaintHacker]

No I know they are in the wrong! they just called me back, very apologetic credited my account with a temporary credit of the full amount of the direct debits and gave me 75quid compensation!!??!

Really?!? What bank was this? Might have to do it as mine have done the same. Its not a problem as its only used as a bill account so my spending money is elsewhere but I didn't realise they weren't allowed to do it.

 

[Norrin Radd]

i have suffered the same in the past ,gave the bank a right ear bashing and like you was reimbursed ,but with no compensation ,[a little too much ear bashing ]like Hobbit i then moved my DD payment day .

 

[chrisd]

No I know they are in the wrong! they just called me back, very apologetic credited my account with a temporary credit of the full amount of the direct debits and gave me 75quid compensation!!??!

I bet they take the £75 back in charges for extra work done on your behalf. :whoo:

 

[PhilTheFragger]

I am an ex Barclays Manager, (left in 1996, so dont blame me

Part of the problem is that the banks now totally rely on computers to balance all the accounts

In the good old days, the Loans clerk at your branch would get a print out on Monday morning, showing which accounts were going to go overdrawn that day if everything that was in the system was paid, they actually had until 12 noon the following day to bounce a chq or DDR , but you would have someone look at your account, look at when your salary was due and then either contact you, pay the items or bounce or transfer from another of your accounts to cover the debt.

The important thing is that you had computerized information, but a human decision.
I would look at Rooters account, see he has a pay credit due that day and tick it off for no further action. because I knew most of my customers at MY branch


Now everything is computerized, at head office level, your branch havn't got a clue about who you are, Funds HAVE to be in your account to cover payments before they are due .

Now on a Monday the computer decides to pay or bounce at about 1.30 AM, that is before the start of the working day, so you could go to the counter at 9.30 am pay in a load of cash and it would make no difference as the computer has already bounced your direct debit earlier in the day.

that is why on all my accounts, I have had a £1000 overdraft facility put on just in case

Also their super stupid computers cannot take into account funds held on connected accounts, so I could have a zillion pounds in one account, but if the other goes over it will bounce first and ask questions later.

Progress ?
Certainly less staff = more Bank profits

This weekend provisioning is nothing new, it is basically the computer looking at what is going out on Monday , taking it off your balance and seeing if it is within your agreed facility/balance. salary Credits are applied a bit later, but the idea is to give the bank a picture of the worst position your account would be in if nothing else happened. In this instance i'm not sure if one company cocked up and sent multiple DDR's through or whether the Bank messed up

Simply they dont trust you and as its very costly for them to pursue you for a debt, they wont let you go overdrawn or over your agreed limit.

 

[delc]

One of my senior golfing friends used to be a Banker, but now he claims that he is a retired Estate Agent, so that he gets less hatred and abuse!

 

[GreiginFife]

While the banks were part of the financial crash in 2008 I think people get a bit carried away in the villification of the entire banking system with a broad brush as being heinous.

Ok they arent lilly white, but what people seem to either not acknowledge or have no knowledge of is the now highest ever level of regulation that is exerted externally. The FCA and PRA were brought in to replace the FSA and to be tough, a government move to seem like they were out to get the bad guys. Bad guys being the banks, any bank, in this situ.
Phil's 1996 example of bank loan clerks harks to an era that in todays climate is unsustainable. Humans arent always the answer.

Anyway, to Rooters point, the weekend provisons were put in place to prevent ever more scenarios of Monday DDs failing due to insufficent funds over weekends.
Its exactly that though, a provision and should just be a reduction in available balance but not the physical balance. Each bank must give the option for the funds to be made available again immediately should you request.

The DD Guarantee clearly states that funds will be requested "on or after" a specified date. Not before.

Banks arent perfect people but the amount of red tape and regulation that runs across them from both domestic and foreign regulators shouls not be ignored.
Much of the regs are "to protect the customer" but actually dont make sense in practicality.

 

[Foxholer]

I am an ex Barclays Manager, (left in 1996, so dont blame me

Part of the problem is that the banks now totally rely on computers to balance all the accounts

In the good old days, the Loans clerk at your branch would get a print out on Monday morning, showing which accounts were going to go overdrawn that day if everything that was in the system was paid, they actually had until 12 noon the following day to bounce a chq or DDR , but you would have someone look at your account, look at when your salary was due and then either contact you, pay the items or bounce or transfer from another of your accounts to cover the debt.

The important thing is that you had computerized information, but a human decision.
I would look at Rooters account, see he has a pay credit due that day and tick it off for no further action. because I knew most of my customers at MY branch


Now everything is computerized, at head office level, your branch havn't got a clue about who you are, Funds HAVE to be in your account to cover payments before they are due .

Now on a Monday the computer decides to pay or bounce at about 1.30 AM, that is before the start of the working day, so you could go to the counter at 9.30 am pay in a load of cash and it would make no difference as the computer has already bounced your direct debit earlier in the day.

that is why on all my accounts, I have had a £1000 overdraft facility put on just in case

Also their super stupid computers cannot take into account funds held on connected accounts, so I could have a zillion pounds in one account, but if the other goes over it will bounce first and ask questions later.

Progress ?
Certainly less staff = more Bank profits

This weekend provisioning is nothing new, it is basically the computer looking at what is going out on Monday , taking it off your balance and seeing if it is within your agreed facility/balance. salary Credits are applied a bit later, but the idea is to give the bank a picture of the worst position your account would be in if nothing else happened. In this instance i'm not sure if one company cocked up and sent multiple DDR's through or whether the Bank messed up

Simply they dont trust you and as its very costly for them to pursue you for a debt, they wont let you go overdrawn or over your agreed limit.

Phil. You are correct to imply that computers only 'make decisions' based on the data they are programmed to consider.

However, it's the idiots designing the system who prevent/ignore the effect of any next day scheduled deposit that are the REAL cause of the problem you allude to. It's actually very simple to duplicate/incorporate the manual process you outline into the computerised system.

It's also quite possible that, while supposedly incorporated, there has been a scheduling glitch such as the payroll info not being received at the right time or, perhaps more likely on the face of it, the DD run being processed too early.

Remember that computers rarely make mistakes, as they are merely doing what they are programmed to do. Humans, on the other hand, are quite prone to mistake-making! Blaming the computer has been a classic cop-out for decades!

Fortunately, the fact that this year is a leap-year, the same think scenario should not occur in (the normally 4 week) February - at least hopefully!

@OP Pleased you got your access to funds back - and with, what appears to be reasonable generous, compensation! Given the size of that compensation, I doubt whether the problem was widespread!

 

[chrisd]

Philthefragger- ex Bank Manager, football referee, moderator!!

Anything else to confess to before we burn you at the stake?

 

[PhilTheFragger]

Philthefragger- ex Bank Manager, football referee, moderator!!

Anything else to confess to before we burn you at the stake?

Me a footy Ref? don't know where you got that one from, you have been seriously misinformed and this is a serious libel !!

There are somethings even I won't do

 

[Blue in Munich]

Philthefragger- ex Bank Manager, football referee, moderator!!

Anything else to confess to before we burn you at the stake?

Me a footy Ref? don't know where you got that one from, you have been seriously misinformed and this is a serious libel !!

There are somethings even I won't do

Oh that's not the worst of it Phil; he's confused you with Homer, who is a qualified ref. I'm just not sure who should be more offended, you or Homer………

 

[PhilTheFragger]

Oh that's not the worst of it Phil; he's confused you with Homer, who is a qualified ref. I'm just not sure who should be more offended, you or Homer………

You can't be offended when someone as old as Chris makes a genuine mistake, you just smile sweetly and spoon him some more complan and wipe the dribble away.

 

[Blue in Munich]

You can't be offended when someone as old as Chris makes a genuine mistake, you just smile sweetly and spoon him some more complan and wipe the dribble away.

:roflMSL :rofl: :cheers:

 

[Pin-seeker]

You can't be offended when someone as old as Chris makes a genuine mistake, you just smile sweetly and spoon him some more complan and wipe the dribble away.

:rofl:
Bless him.

 

[SaintHacker]

You should complain about that Chris, make him give himself an infraction!

 

[SwingsitlikeHogan]

I have found in the past a real pain when your DDs due on say the Monday make you overdrawn on the Saturday - and even although you were going to do a bank transfer of funds on Sunday for first thing Monday morning - you can't withdraw any cash on the Saturday