Can AIB do this?

breadmonkey

I have Student Plus account with AIB. I took out a student loan at the beginning of last summer which I have not paid back in full yet.

Here's the situation: I had approx €450 left to pay off in the loan account and I had a balance of approx €250 in my current account. I agreed to pay off €263 (or something very close to that) for x number of months.

I went to the ATM the other day to find that I am now €13 overdrawn. I assume they took the €263 out of my account.

My question is this: Since I don't have an overdraft facility in my current account, are AIB entitled to take more money than is in there in the first place and, presumably, charge me interest on the €13?

JohnCleary

breadmonkey wrote:

I have Student Plus account with AIB. I took out a student loan at the beginning of last summer which I have not paid back in full yet.

Here's the situation: I had approx €450 left to pay off in the loan account and I had a balance of approx €250 in my current account. I agreed to pay off €263 (or something very close to that) for x number of months.

I went to the ATM the other day to find that I am now €13 overdrawn. I assume they took the €263 out of my account.

My question is this: Since I don't have an overdraft facility in my current account, are AIB entitled to take more money than is in there in the first place and, presumably, charge me interest on the €13?

I thought I was unable to over-draw on my BOI 2rd level account, went to check my balance the other day, and woah... was about 50euro overdrawn. It was over-drawn with a laser card though....

kc66

I had a student plus account and as far as I remember there was a pre-approved overdraft facility. So I dont think you have to request an overdraft.

Pythia

Yes they can. This happened to me before. I was on holidays and took out the equivalent of 300e from an ATM. Turns out I only had about 100e in my account so I then had an overdraft of about 200e which I discovered when I got back. I was pretty pissed off, I wouldn't have spent the money if I knew I didn't have it.
I have a BOI student account with no overdraft facililty.
I rang up the bank and they said that if you have some money in your account, a payment out will normally be accepted.

dudara

You can go into overdraft with a laser card, loan repayments etc. It won't happen for any other direct debits however.

Sarsfield

breadmonkey wrote:

I have Student Plus account with AIB. I took out a student loan at the beginning of last summer which I have not paid back in full yet.

Here's the situation: I had approx €450 left to pay off in the loan account and I had a balance of approx €250 in my current account. I agreed to pay off €263 (or something very close to that) for x number of months.

I went to the ATM the other day to find that I am now €13 overdrawn. I assume they took the €263 out of my account.

My question is this: Since I don't have an overdraft facility in my current account, are AIB entitled to take more money than is in there in the first place and, presumably, charge me interest on the €13?

They may have done you a favour. The charge for going into overdraft without authorisation may well be lower than the charge for a failed DD payment. And less injurious to your credit rating!

rainbow kirby

I got overdrawn just before Christmas from my Student Plus account... my standing order for my student loan payment comes out the day I get paid, but there was a computer screwup at head office which meant I got paid 3 days late. Afaik there wasn't any charge.

Greenhorse

yep people they usually do this.

I worked in BOI for bout 6 years. The majority of people appreciate a direct debit of e252 (think thats what you said) being honored when only e13 short. expecially when the dishonor fee could be more than that.

Dont take it too hard. Just check your a/c balance on line every once and a while. If your on boards.ie sure you can log into your bank a/c aswell and check everything is shipship

Rgds,

Niall

.

Laguna

breadmonkey wrote:

I have Student Plus account with AIB. I took out a student loan at the beginning of last summer which I have not paid back in full yet.

Here's the situation: I had approx €450 left to pay off in the loan account and I had a balance of approx €250 in my current account. I agreed to pay off €263 (or something very close to that) for x number of months.

I went to the ATM the other day to find that I am now €13 overdrawn. I assume they took the €263 out of my account.

My question is this: Since I don't have an overdraft facility in my current account, are AIB entitled to take more money than is in there in the first place and, presumably, charge me interest on the €13?

Yes, proving that student loans are like having a (pure black) Guinness ****e... we've all had one at some stage and regret it deeply..

vector

I've had an unauthoised overdraft on my AIB "cashsave" account, in the amount of the Govt ATM card stamp duty, which I wasn't expecting (and incidentally disagree with). Anyhow no fees were charged by AIB, which was nice.

gerrycollins

if you signed a piece of paper agreeing to pay "x" amount weekly/monthly then you will pay it no matter how much you go overdrawn but they may be nice and not charge you for the short overdraft facility they allowed you its all legal plus its like the gov stamp duty you have to pay it no matter what your finincial situatuion is,if it put you further into debt well then tough

Savman

breadmonkey wrote:

I have Student Plus account with AIB. I took out a student loan at the beginning of last summer which I have not paid back in full yet.

Here's the situation: I had approx €450 left to pay off in the loan account and I had a balance of approx €250 in my current account. I agreed to pay off €263 (or something very close to that) for x number of months.

I went to the ATM the other day to find that I am now €13 overdrawn. I assume they took the €263 out of my account.

My question is this: Since I don't have an overdraft facility in my current account, are AIB entitled to take more money than is in there in the first place and, presumably, charge me interest on the €13?

Simple answer, yes.