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Mortgage debited early - can my bank charge an overdraft fee?

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  • 02-08-2011 8:29pm
    #1
    fricatus
    Registered Users Posts: 5,081 ✭✭✭


    Hi all, I wonder if you can help.

    I've a current account with PTSB and mortgage with Ulster Bank. The mortgage goes out on the first of every month, and I normally fund that account from another PTSB current account a couple of days before.

    This month, I logged on to Open24 so as to transfer the money on 31/07. However the mortgage payment had already been deducted and the account was in debit - although the date on the transaction was 02/08.

    I transferred the money right then anyway and made up the shortfall, plus quite a bit more. Today I see a referral fee being charged for an unauthorised overdraft, which is really taking the p155, given that I funded the account the day before the usual mortgage date and two days before the actual transaction date.

    Any advice?


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    #2
    rameire
    Registered Users Posts: 4,153 ✭✭✭rameire


    you need to be careful when weekend and bank holidays are around.
    you would need to have the money in the account the previous working day before the direct debit.
    you say you moved the money on the 31st, that was sunday, in reality the money you moved would not really be available for use until wednesday 3rd.
    you should have moved the money to the account last thursday so it would be in the account on friday and ready for use on tuesday the 2nd.

    🌞 3.8kwp, 🌞 Split 2.28S, 1.52E. 🌞 Clonee, Dub.🌞



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    #3
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Not really your banks fault. Your mortgage provided requested payment on the direct debit and your bank cannot refuse. If sufficient funds were not available they could have refused it but often the charges for an unauthorised o/d are lower than the charge they would have put if they refused it so your bank let it through in good faith it would be rectified by you. Nothing you can really blame your bank on.

    DD's which fall on a weekend or public holiday are generally taken the previous business day so best just keeping an eye on it in future.


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