Unathorised overdraft created

B

Bow tie

Registered User
Messages
88
A delayed transaction has caused an account to go into unauthorised overdraft with associated fees and rates.

Bank tell me there was no way to stop this, is that correct, should the transaction have not been rejected due to insufficient funds?
They mentioned it can happen if there is a delay in the transaction due to coverage, and there would have to be some funds, but then it can still go through and into the unauthorised overdraft situation.
Especially for younger or vulnerable customers, it doesn’t feel right that this can happen? Additionally, if the delay is in Bank processes where they dont stop the value going into minus figures, it feels like unauthorised access to overdraft!

I am having trouble finding out how to block this situation from happening with the bank, does anyone know how or done this before? Thank you.
 
Most people have the opposite complaint. "The bank ruined my reputation by bouncing a cheque/payment which would have put me into and overdraft of only €500"

Bow tie said:
I am having trouble finding out how to block this situation from happening with the bank, does anyone know how or done this before?
Click to expand...

Yes, keep track of your payments and make sure that you have enough money to meet them as they are presented?

If you don't expect to have enough money, go online and stop the payment before it is presented.
 
This is completely sensible and normal advise for most adults.

Less so for younger people getting used to transactions and money management, or vulnerable/ older people.
 
But it's probably more important for younger people to understand this?

I would say that older people are more careful.

Depending on what you mean by "vulnerable" , it may be necessary to limit their banking facilities.
 
Brendan Burgess said:
"The bank ruined my reputation by bouncing a cheque/payment . . .
Click to expand...
This. Banks are very reluctant to dishonour a customer's payment instruction because of the reputational damage to the customer.
Brendan Burgess said:
keep track of your payments and make sure that you have enough money to meet them as they are presented?
Click to expand...
Plus there's plan B — negotiate and get approval for a modest overdraft, but don't avail of it. Then, if a credit to your account is delayed and a debit takes you into overdraft, it's an authorised overdraft which only attracts the standard overdraft rate and no penalties.
 
Bow tie said:
I am having trouble finding out how to block this situation from happening with the bank, does anyone know how or done this before?
Click to expand...
Many or most current accounts have an option to notify you if your balance falls below some specified minimum amount which you may be able to set as an appropriate buffer to mitigate (but not eliminate) the chances of going overdrawn in such circumstances. E.g. my PTSB current account has this feature and I set the minimum balance to €500.

 
Its BOI and doesnt seem to be anything like that.
They have text alerts which didnt seem to have worked in this case, despite notifications on phone on and phone number correctly in app.
Similar to Brendans point we really need to sit them down and have another conversation about financial responsibilities for accounts, cards, paypal, gaming and the plethora of online ways things can go wrong.

I would still think you should have the option to have a transaction bounce and deal with those consequences, rather than go into unauthorised overdraft with associated charges for the bank.
 
You must log in or register to reply here.
Back
Top