From: ian.tomes@gmail.com
Newsgroups: uk.finance
Subject: Re: Do banks credit before they debit or the other way round?
Date: 19 Feb 2007 15:42:41 -0800
   posting-account=gTalSQ0AAAClKf7DPaFkfrkl-PWIXinG

On 19 Feb, 21:03, John Boyle  wrote:
> In message , Peter Saxton
>  writes
>
> >I bank at Lloyds TSB and I have a few accounts and one I use for
> >direct debits, etc. I would transfer money in every few days but I'd
> >never been sure how much was needed so I started to check every
> >morning. I was told that I had to have the money in the account by the
> >end of the day. Once I was busy in the morning and I didn't check the
> >account until the afternoon and I saw that they'd rejected a direct
> >debit (for about =A320!) and charged me =A330 as well! When I complained
> >they said that now the "computer" looked at the account at 11 am and
> >rejected direct debits then. They refunded the charges but now I have
> >to make sure I check earlier - otherwise I have to complain and check
> >for their refund which takes about a month!
>
> Yes, I understand some banks are taking the cowards way out and doing
> what you describe. Despicable.
> --
> John Boyle

Its a bit swings and roundabouts really, we make our pay/dont pay
decisions in the range 03:00-07:00 in my experience, but in terms fees/
interest dont consider the position until the end of the day. So as
long as a 'bills account' has a formal overdraft (or an informal
overdraft request is agreed) to cover all the potential DD/SOs etc,
then the decisions will be to pay, but it wouldnt matter if it wasnt
until up to 23:59 when funds were placed to the account for overdraft
arrangement fees and interest calculation purposes.

Ian