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Overdraft Question

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  • 14-05-2012 9:50am
    #1
    abouttobebanned
    Closed Accounts Posts: 6,943 ✭✭✭


    I have 2 bank accounts at the moment, one in the Ulster Bank and one in the bank of ireland. The Ulster Bank account is the one I use mainly now. Both accounts have no overdraft facility, and none was ever requested.

    However, the BOI one is now 200 in debit because it left two direct debits come out of the account that I had asked to be cancelled. They are now demanding this 200 be paid, which of course I'll have to do. But, it's annoying, because I never requested an over draft on the account so did they have a right to pay these direct debits?


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    This is an unauthorised overdraft. Its often done were DD's are coming out and not funds to meet it, the bank will pay it out and expect to get repaid in good faith.

    You probably will get charged an overdraft facility fee for this. However this would be cheaper than the charges for two unpaid DD's on the account so financially better for you they did pay them out.

    The banks are damned if they do, damned if they dont. People give out tooth and nail about paying DD's when money not there and then others give out they didnt pay it out when money not there. Personally I would like my banks to pay a DD out if I am short funds one week.

    By having a DD mandate it is intrinsically implying that you wish to bank to pay out the funds for any payment sought from the DD mandate.


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    #3
    abouttobebanned
    Closed Accounts Posts: 6,943 ✭✭✭abouttobebanned


    I see what you're saying but I still believe that an overdraft facility like this should only be in place if the customer requests it.


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


    abouttobebanned wrote: »
    I see what you're saying but I still believe that an overdraft facility like this should only be in place if the customer requests it.

    Fair enough, talk to your bank and ask them to ensure this doesnt happen again. I wouldn't exactly blame them for anything as works out cheaper for you this way and they havent done anything wrong. This is a thing the banks will never be able to keep everyone happy on.

    You may not even get charged for it to be honest. Depends on if it is a regular occurance which doesnt sound like it is.


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    #5
    abouttobebanned
    Closed Accounts Posts: 6,943 ✭✭✭abouttobebanned


    The thing is, I've moved banks now (wasn't happy with the charges in BOI) and that DD should never have even come out. Boi will be chasing me for that money now.


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