Under 18's Bank account has become overdrawn.

Kershaw.D

Hey,
I went shopping the other day I had about €1500 in my account and I got a little carried away with myself and spent €1750 on my Visa debit card now my account has become overdrawn, but I thought that an under 18's account can not become overdrawn and I'm only gone 16.Its an adapt account with Ulster Bank. My parents have no problem paying it back but I just didnt think that it could happen.
Should this have happened

jimoc

You can't get an overdraft on an account under 18 however it can go into unauthorised overdraft, as you've just found out.

the reason is because laser transactions are not consolidated until the end of the day, therefore the bank has to honour all the transactions you've made during that day.

Kershaw.D

This wasnt made by laser it was a visa debit

stepbar

Kershaw.D wrote: »

This wasnt made by laser it was a visa debit

It's "effectively" the same thing.

**Timbuk2**

Laser and Visa Debit work the same way. It forced your account into an unauthorised overdraft. I'm not sure whether they would charge interest to an under-18 account, but make sure it is paid off as soon as possible, just in case!

In future, you should always know what's in your account and never spend more than this. Don't think that the transaction won't go through if you don't have suffiicient funds - they will often go through but put your account in the red (especially those transactions which aren't processed in real time). If your account gets overdrawn, you can get hit with nasty fees (usually something like 14% if it isn't an approved overdraft).

Kershaw.D

And is there anyway that I can have it so as it cant even go into unauthorized overdraft. As I know that I will just end up doing it again.

Toots

No. The only way to avoid an unauthorised overdraft again is to simply be more careful with your spending. If you feel that you can't control the amount you spend then my recommendation would be to get rid of the Visa Debit card and get yourself a standard ATM card instead.

rainbowtrout

Kershaw.D wrote: »

And is there anyway that I can have it so as it cant even go into unauthorized overdraft. As I know that I will just end up doing it again.

I'd be more worried about the fact that you spent €1750 and you're only 16 and 'it's ok because my parents will pay it back' You should be taking responsibility for this. If you can't do that, get rid of the card and just have a regular ATM card.

Kershaw.D

I'm always loosing money so thats the reason I need the card, does that mean that no I cant stop it from going into unauthorized overdraft.
And whats wrong with me spending my money?

Kershaw.D

Sorry didnt read the post above the one above me

Gordon

If it's anything like visa debit in UK - they can take a few days to come off your account. You've got to know where your available balance is at all the time. Available balance will show a drop in amount when the debit transaction goes through, not the day you make the transaction. In UK it can take 3-4 working days, sometimes longer, to show up on your actual statement and out of your available balance via visa debit.

You will get different reasonings from different people, but I think it's to do with visa holding/clearing the amounts, plus maybe when the batch totals in the shops are done, not sure tbh. Some shops can take a while for transactions to go through. Sometimes this is called 'earmarked' funds.

Kershaw, it's a hard lesson to learn (always check the contract/t&cs/small print, sorry to say that!) but if you keep your accounts in good stead you may then in future be able to get an overdraft to give you that extra leeway, and maybe some of it interest free, who knows!

Are the unplanned overdraft charges hefty?

Kershaw.D

On the ulsterbank website( http://www.ulsterbank.ie/roi/personal/daily-banking/current-accounts/young-people-accounts/adapt.ashx ) it says "Overdraft or credit facilities are not available - neither you nor your parents need worry about you spending money you don't have in your account."
So they did say that I cant spend money thats not in my account

Gordon

Kershaw.D wrote: »

On the ulsterbank website( http://www.ulsterbank.ie/roi/personal/daily-banking/current-accounts/young-people-accounts/adapt.ashx ) it says "Overdraft or credit facilities are not available - neither you nor your parents need worry about you spending money you don't have in your account."
So they did say that I cant spend money thats not in my account

It'd be nice if they linked to the exact terms and conditions as that wording is a bit ambiguous.

Kershaw.D

It appears that they are using the same t&c's for all of there accounts,
But that couldn't be right

rainbowtrout

Kershaw.D wrote: »

It appears that they are using the same t&c's for all of there accounts,
But that couldn't be right

But as has been stated a few times, it can take a few days for transactions to appear on your accounts and the bank will honour the transaction, as it was approved when your card was put through the machine in each of those shops. The transaction approved message that comes up on the machines tells the shop that they will get paid for the transaction. So the bank honours it and the only way of doing that is by going into overdraft on your account.

You can spend your money in whatever way you choose but it would seem to me that if you are able to spend 1750 in one day and not keep a running total as you go and go well over the amount you had available to you, that you're not particularly responsible with money. I know little or no 16 year olds with access to that kind of money. You also said that you lose money (I assume regularly) so you need a card. People don't continuously lose money when they can't afford to. If you need an money get an ATM card, when you have to go the ATM machine you might think more about how you are not going to lose the money, how much you are spending and you won't be able to go into overdraft.

You seem to be more concerned with the fact that you have an overdraft when you're underage rather than why you went into overdraft in the first place.

Kershaw.D

Well, I am more concerned about why I was allowed go into into overdraft than the fact that I did, as for small amounts like the 250 I dont really mind paying the bank but Im worried about If I go a lot over the limit.

Im pretty sure that most of you just think that Im being stupid but that has never happened to me with my laser card as it was rejected the 2 times(that I can remember) when I ran out of money, although I was embarrassed Id just rather not be able to spend money I dont have

Gordon

Kershaw.D wrote: »

Well, I am more concerned about why I was allowed go into into overdraft than the fact that I did, as for small amounts like the 250 I dont really mind paying the bank but Im worried about If I go a lot over the limit.

Well the 250 isn't yours, it's the banks, so naturally you shouldn't mind, that should go without saying. If you are worried about going a lot over the limit, be prepared to be embarrassed, or always check your available balance at an ATM. But call your bank to find out exactly how the card works as they should be answering your questions in detail really!

Im pretty sure that most of you just think that Im being stupid but that has never happened to me with my laser card as it was rejected the 2 times(that I can remember) when I ran out of money, although I was embarrassed Id just rather not be able to spend money I dont have

Your laser card got rejected in the past, but your debit never did yeah?

Kershaw.D

Gordon wrote: »

Well the 250 isn't yours, it's the banks, so naturally you shouldn't mind, that should go without saying. If you are worried about going a lot over the limit, be prepared to be embarrassed, or always check your available balance at an ATM. But call your bank to find out exactly how the card works as they should be answering your questions in detail really!

If you believed that they would stop you from having no money, why were you embarrassed the first time? Did it not make you think that you had no money left, so should stop purchasing?

I did stop buying stuff when it was rejected the 1st time but then later(another day) I had money on it and ran out again.

The reason that I dont always know how much I have is because my parents put money in my account for me every week and sometimes its delayed or something so I dont have the money that I should,
It doesnt matter now anyways Im just going to drop into the bank tomorrow to pay them and ask them all of these questions.

rainbowtrout

Kershaw.D wrote: »

Well, I am more concerned about why I was allowed go into into overdraft than the fact that I did, as for small amounts like the 250 I dont really mind paying the bank but Im worried about If I go a lot over the limit.

Im pretty sure that most of you just think that Im being stupid but that has never happened to me with my laser card as it was rejected the 2 times(that I can remember) when I ran out of money, although I was embarrassed Id just rather not be able to spend money I dont have

I don't mean to harp on at you, but I would be concerned. Maybe you are quite well off or have very generous parents, or work in a part time job and make a fair amount of money that you have that much money to spend as a 16 year old. You're lucky. When I was 16, granted it was 15 years ago, I had a fiver a week and that was it.

I'd just be worried at the fact that you see 250 as a small amount of money that you don't mind paying back - it's not like you're doing the bank a favour, you are in debt to them. You have to pay them back, or rather your parents will be by the sound of it. For me 250 is not a small amount of money, it would pay for at least 5 good nights out or my broadband/landline/mobile phone/electricity bills and petrol for a month.

And while everyone has been in a shop at some stage and realised they don't have the money to pay for something, or gone to the ATM and found it wouldn't give them any money, I'd just be worried at the fact that you seem so blasé about it and are unaware of what is in your bank account, that your laser card has been rejected on more than one occasion.

Kershaw.D

Both times that I was rejected was because my mum forgot to put my money in. So I should have had money in it. Other than that this is the only time that I have went overboard.

And I have contacted the bank apparently I was on top of my spending as I was charged an extra 322 by Arnotts, which is already in the process of being refunded.

And I dont exactly think that 250 is a small amount just that its not a very large amount.

And I do agree with you about saying that I have too much money, as I know what its like to be from a working class person as we were until about a year ago. So I was just like you when you were a teen well not €5 about €50 a week, But I could go back to that without any problem.

And I know that you also probably think that I just go out and waist my money. But I don't I also spend it on my friends and I give €100 every time I get money from my mum to a charity usually Childline or Irish cancer Society(My grandad died from cancer)

Thanks for your help.

Toots

It'd probably be a good idea for you to set up a savings account of some sort and put some of your money away every month. You'll find it comes in handy when you're in college, or going on a 6th year holiday, or when you want to buy your first car.

Kershaw.D

Yea, I am I have already applied for a Credit Union Account

rainbowtrout

It might also be an idea to set up online banking/phone banking if you don't already have it. At least then you can check your balance before you go shopping so you know what you can spend.

Fair play to you for the charity donations. Not many teenagers would do it.

Kershaw.D

I have applied for the phone/internet banking but Im still waiting.
As I have only turned 16 and Ulster Bank dont allow you to use it until your 16.
So it should be ready soon.

Not that Ill be able to use it since Iv just noticed that Iv lost the card. Does anyone know how long it takes for me to get a new card. And can I collect my new pin from the Branch as it will take ages if I cant?