Direct debit and debit card payments from my account

[Frankieola]

Can a bank authorise a debit card purchase or direct debit for a higher amount that is left in my account and then charge me for going overdrawn? I've just had a company put through a debit card purchase (against my wishes at that time) for £405 but I only had £380 left in my account. My bank authorised this and then charged me the usual £12 fee. I dont see why i should be charged if they authorised it, I think they should have rejected it as there was insufficient funds!!! Any opinions or answerrs out there? Thanks!

[jackthehat]

Yes, I think that they should have rejected it.
And then charged you £ 30 for them having to bounce a transaction set in motion by you.

[milly143]

You requested your bank honour a payment to a company. Whether the company asked for the money when you wanted them too or not is your issue with them, not the banks.

In my opinion, the shouldn't allow the payment to go through without sufficient funds and no agreed extra lending but as Jack says, if they bounce a payment you will only end up being charged for that too.

[Red_John]

They didn't authorise it, you did, they where just carrying out the transaction. They eaither put it through and charge whatever the fee is for going over the limit, or they bounce it charging even more.

How was the debit card puchase against your wishes? Can you elaborate.

[rowanwitch]

If you had previously informed them giving the specified period of notice that you did not want the transaction to go through then you can argue the case... the notice period is often longer than you'd think 14 days or longer in some cases so if you only told them a couple of days before you will probably find you can do nothing

[youngmafbog]

Do you have an authorized overdraft facility? If you do then they will certainly honour the transaction you initiated. If not it is rather odd.

[milly143]

I don't think it's that unusual. I don't have any overdraft but on a couple of occasions a purchase has put my account in arrears. The bank honour the payment even though that leaves you overdrawn and then charge you. It's only ever been very small amounts in my case but there might be a limit as to how much they will let it go over.

[factor-fiction]

I don't know what you mean by: "against my wishes at the time".

[twix123]

Many banks will pay a cheque or Debit Card transaction for an amount up to about £100 over the available balance without rejecting it. If you changed your mind about the goods or service your first point of redress would be against the retailer or service provider. Had your bank refused payment, why should the other party pay fees for a 'bounced' payment because you changed your mind?

If you look at it the other way, would you have been happy if the bank had refused payment for an item you wanted and you had debt collectors knocking at your door?

[AliFlump]

My friend has just been charged for going overdrawn after the bank cashed a check on 23rd march which was post dated for 30th march after which she knew her wage would be in. Bank said it's not their job to check the date when they cash it

[squarebear]

And rightly so AliFlump. Post dated cheques do not have to be honoured by the banks.

[moeky99]

As far as I can remember from my banking days, if you make a card purchase in a shop that is authorised, but then later your account doesn't have enough cash to cover the amount, you will go overdrawn as there is no way to "stop" you having the purchase (ie you've taken the goods home).

If it's for services (gas, c-tax, whatever), as long as the company have your debit card details all payments made will be seen as being authorised by you (exactly the same way they would be in a shop). The only way the bank won't pay is if the card is not linked to the account anymore, like when you've lost it or had it stolen. You could ask the bank to refund you the charges, but in actual fact they don't have to. Sorry :(

[boxtops]

A direct debit is your authority to the bank to pay the item, so the bank will accept it - and yes, they can then charge you for being overdrawn. You need to check your bank's terms and conditions - my bank would charge me MORE for rejecting a claim for payment than they do for going overdrawn.