IRISH BANKING

Manikin

Just looked at a closed thread "Best Bank" and thought my experience might be of interest. I was with AIB, and every month a standing order paid off my credit card in full. Until the AIB failed to pay €3900 to MBNA. I had broken the rules - I would have been €2 (two) overdrawn. Did the bank tell me? What do you think. The first I knew of it was a demand from MBNA. Cost to me - about €80. I did get a phone call saying "Sorry, what a pity, and thanks for letting us know"!
I am now with Halifax - inconvenient as they have very few branches - so Internet is the only option, but I have a free small overdraft allowance (never used) and I get interest on a monthly basis.

I wonder if something like this has happened to anyone else since it happened to me, about two years ago.

tSubh Dearg

Moved from Classical forum. Think this is probably a better place for the thread.

Toots

Manikin wrote: »

Just looked at a closed thread "Best Bank" and thought my experience might be of interest. I was with AIB, and every month a standing order paid off my credit card in full. Until the AIB failed to pay €3900 to MBNA. I had broken the rules - I would have been €2 (two) overdrawn. Did the bank tell me? What do you think. The first I knew of it was a demand from MBNA. Cost to me - about €80. I did get a phone call saying "Sorry, what a pity, and thanks for letting us know"!
I am now with Halifax - inconvenient as they have very few branches - so Internet is the only option, but I have a free small overdraft allowance (never used) and I get interest on a monthly basis.

I wonder if something like this has happened to anyone else since it happened to me, about two years ago.

Probably has. Unfortunately if you go overdrawn (yes even a small amount like €2) without a sanctioned overdraft, the bank is under no obligation to pay your direct debits, or standing orders, or cheques etc. To say AIB failed to pay it is a tad unfair, as the onus is on the customer to ensure they have adequate funds in their account to meet their outgoings. Has happened to me once or twice, and although it's annoying, it was totally my own fault. I set most of my DDs and standing orders to go out on the day I get paid so there's money there. One's that I can't choose the date for, I set reminders in my phone for the days they're due so I can make sure there's money in my account.

Manikin

I am aware of the legalities, but I would expect a bank sensitive to what customers think of it to at least have had the courtesy to let me know so that I could have dealt with the situation. We are talking about two weeks here. And AIB were (are?) charging €25 for the possibility of a small (€100??) overdraft. With the Halifax it is free, although I don't know if they are geared up to inform me should a similar situation arise.

LauranceB

Manikin wrote: »

Just looked at a closed thread "Best Bank" and thought my experience might be of interest. I was with AIB, and every month a standing order paid off my credit card in full. Until the AIB failed to pay €3900 to MBNA. I had broken the rules - I would have been €2 (two) overdrawn. Did the bank tell me? What do you think. The first I knew of it was a demand from MBNA. Cost to me - about €80. I did get a phone call saying "Sorry, what a pity, and thanks for letting us know"!
I am now with Halifax - inconvenient as they have very few branches - so Internet is the only option, but I have a free small overdraft allowance (never used) and I get interest on a monthly basis.

I wonder if something like this has happened to anyone else since it happened to me, about two years ago.

Yes this has happened to me too but with Halifax. They bounced a couple of very small cheques on me lately because I had went over my overdraft, by pittance. My own fault I know but my current account is always kept in working order and I've never failed to regularly lodge money so I thought they could have let me know.

Toots

In my experience, they'll only contact you if say you're overdrawn and a very large cheque (like 10k or more maybe) is presented on your account. They will often give a call in this situation to see are you aware the cheque is there, and to discuss it with you. For smaller amounts, they're just automatically bounced by the computer system AFAIK.

homer911

NIB has a facility where if honouring a direct debit would put you overdrawn on a particular morning, they give you up to close of business that day to lodge cash or transfer funds from another account.

If you sign up to the service you get an email or SMS message when this happens

100gSoma

had a similar issue with BOI in the past. A simple phone call could have saved 90euro fo charges had they informed me. Argued my case and didn't end up payign the charges. but still, not nice that they leave these things. I suppose its revenue generation. If they were proactive in informing customers incurring charges, then they would lose a lot of money.