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  1. #1
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    Question Direct Debit Question

    I am just wondering if any of you guys know how the Direct Debit system works because I have this dilemma:
    Tomorrow I am supposed to have £200 withdrawn from my bank account (Student NatWest account) by Direct Debit but I only have £150 in the account currently. Does it work the same as PayPal Direct Debit where you have a few days before the money is actually withdrawn from your account or is it instant? Because if its instant I have no overdraft on this account so will then be overdrawn which will be a problem. The money is supposed to go to www.h-l.co.uk for a few funds.

    I was planning to put in some more money today but just missed the bank, I thought it closed at 5pm but it was actually 4:30pm.

    I did have a search online but couldn't come up with any answers because I wasn't quite sure what to search for.
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  2. #2
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    It takes anywhere from 3-7 days for small balance transfers. It sounds like the transaction will likely overdraw your account.

  3. #3
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    I hope it takes 2-7 days so then I can go in tomorrow and add in the £250 I was planning to hand in today. Also is it the same in the UK as the US?
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  4. #4
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    Is this the first transaction via Direct Debit? If not, can you go back and check on the other day and see what happened?

  5. #5
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    Quote Originally Posted by Corey Bryant View Post
    Is this the first transaction via Direct Debit? If not, can you go back and check on the other day and see what happened?
    Unfortunately this is the first transaction.
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  6. #6
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    Chances are, it is probably very similar (if not the same) if it is going through the same system. In the US, it is ACH, governed by NACHA.

  7. #7
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    So can anyone confirm that it is 3-7 days in the UK because if it isn't I would have to phone up the H-L people and try to explain the situation so the can postpone the withdrawl but they said that I need to give 14 days notice before changing the Direct Debit options.
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  8. #8
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    if they cant withdraw the money of your account, I'm pretty sure they either contact you or try again the next day?

  9. #9
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    Quote Originally Posted by amygdela View Post
    if they cant withdraw the money of your account, I'm pretty sure they either contact you or try again the next day?
    That was what I was hoping but once when I used PayPal I didnt have enough money in my account,Needed £4 but I was £0.20 short, and NatWest put my £40 in the negatives and bounced the payment so I dont want anything like that happening again.
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  10. #10
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    You should always leave $5,000 more of what you need in your bank account to avoid overdraft charges.

    Peace,
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  11. #11
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    $5,000 more than is needed! Are you kidding? I keep pretty much every penny I have in my savings account and then only move it to my current account when needed. Why miss out on interest!
    Steve

  12. #12
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    Quote Originally Posted by azizny View Post
    You should always leave $5,000 more of what you need in your bank account to avoid overdraft charges.

    Peace,
    Unfortunately I am a student so I don't quite have $5,000 around to put in unfortunately (Stupid University Fees)
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  13. #13
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    You have no overdraft protection. They will fail to debit the account. If it's done as a typical ach debit you'll incure the same fee (from the bank) that any bounced check will incur.

    So the 150 will still be there, minus whatever fees.

    That's if its a typical setup. Some banks will allow you to go overdrawn and they'll approve the debit anyway. but most don't.

    And no, it's nothing like a paypal transfer. The debit will hit your account tomorrow.
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  14. #14
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    Quote Originally Posted by Vortex-Steve View Post
    $5,000 more than is needed! Are you kidding? I keep pretty much every penny I have in my savings account and then only move it to my current account when needed. Why miss out on interest!
    I'm the same way. I setup a zero base budget, so I can account for every expense. At the end of the month, anything left in the checking's get put into the savings account. And then it get's refilled again as I get paid. If someone takes out more than they're supposed to, they'll pay the charges ... though I do have my credit card linked as over draft protection.

  15. #15
    Fastnoc hit the keyword. Consider it the same as a check you might have out.

  16. #16
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    Well I guess I will learn this lesson the hard way. But on the letter they sent me there wording was "£200 or or immediately after the 7th day of each month with effect from 7th August 2007" I just hope that "immediately after" means the 8th
    Also Im going to the bank first thing to deposit the money and hope for the best.
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  17. #17
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    In experience, "£200 on or immediately after the 7th day of each month with effect from 7th August 2007", means that they process they payment on the 7th, and it depends on the specific bank as to when it actually leaves your account.

    Unfortunately, it sounds as if you will most likely incur a charge either for an unauthorised overdraft, bounced DD, or as with most banks, both.

  18. #18
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    Just been to the bank and the first thing the Lady at the counter said was "you just missed it" so I have now incurred a fee of £40 but as far as I can tell the Direct Debit has gone through it seems according to my Mini Statement but ill have a look tomorrow.

    I guess that I learned my lesson the hard way £40 is a mornings work for me so I better get working
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