Being charged when transfering money to cover dd

piperh

Sorry for the ambiguous title but i didn't know how to phrase it :rolleyes:

Talking to a friend who works for Santander in the UK the other day and i mentioned that my bank charges me if i transfer money to cover dd on the day they come out of my account and she said this is an illegal practise. So for example if i remember at 1am that my insurance comes out that day and i get up at 8am and transfer money to cover it from my other account (same bank) then my dd is paid but i'm also charged a fee from my bank because the money wasn't there at midnight when the dd hits my account. Does anybody know if my friend is right or does this not apply to Ireland, She seems to think its european law so should.

And if she is right how do i go about questioning this with bank?

lexa

I don't think there any specific rules that cover this under the European payment services directive or clearing rules. However it would not be considered good practice to apply a referral fee in the circumstances that you refer to. I know most banks don't. Who do you bank with?It might be worth complaining to your bank directly and they might refund you. You should mention the following: Requirement to base referral fees on close of day account balance “One bank applied a referral fee based on whether sufficient funds were in the current account at the time of presentation of the debit item, as opposed to whether the account was over limit at close of business, as is industry practice. It was determined that this was not in customers’ best interests, as in some cases customers would lodge money to the current account during the business day and the account would not be over limit at close of business, but yet the referral fee would still be applied. The bank concerned has been directed to apply the referral fee based on the close of business position of the current account.” This is taken from a Central Bank press release:http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankInspectionIdentifiesUnfairPracticesinCurrentAccountCharges.aspx

piperh

Thank you Lexa, I bank with Permanent TSB. My account has never been overdrawn at the end of business as i've always transfered money the same day. If i hadn't and incurred referal charges i'd consider it my own fault and to be honest i did with these charges as i should have transfered it the day before:o It seems a bit rich charging me €15 when they knew the money would be there.

lexa

Yeh your situation seems to be exactly what the press release refers to. It was probably more a systems issue on the part of the bank. It’s definitely worth raising a complaint with PTSB. I’d be surprised if they didn’t offer you a refund