A question about direct debit

Gackt

Gackt

Gackt

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Before I explain, I'll get down to the question: Can a company who I have a direct debit with, to take out money monthly, take funds from an overdraft?

My problem is thus:

I'm in my second year at Uni, yay, and I ended up going deep into my overdraft before getting my student loan (cost over £150+ to get my stuff up here, and I had to pay £100+ for an exam resit I should never have done) - plus some other stuff I had to take care of.

That left me with little or not cash - but the loan + grant came in, giving me a little bit of money to live on.

The company I'm renting my abode from (who have yet performed the repairs/maintenance on the house they've said they should do (fuses haven't been checked for 6 years :/)) are taking £249 p/m from me.

They, however, took twice the rent out in October, leaving me incredibly short. I could have called, as some of my housemates were in a similar situation, but I had enough money to continue without calling and simply not pay the month at the end of contract.

I'm now in a position where I'm overdrawn and thus have no funds in my bank except a lovely negative figure. (I've been reduced to eating supernoodles as dinner...haven't reduced myself to eating Tesco's 8p Noodle Supplement yet) and am kinda worried about December's money.

If they kick up a stink, I'll just ask them to use the money they, against contract, took out in October. But I was wondering if they could take out the money from my bank despite it being overdrawn?

Any help would be appreciated. :(
 
if you have the funds to pay it, it will be taken, regardless of whether it is your own cash or an overdraft.
if you are overdrawn over your overdraft, then payment will not be taken, but you will be charged by both the bank and the company requesting the money. not good!
 
Morba said:
if you have the funds to pay it, it will be taken, regardless of whether it is your own cash or an overdraft.
if you are overdrawn over your overdraft, then payment will not be taken, but you will be charged by both the bank and the company requesting the money. not good!
Click to expand...

If it's just taken out of my standard overdraft, then 'everything should be alright' as I have a £1800 overdraft at a low interest rate...phew.

:o
 
Do you mean an authorised overdraft, or unauthorised? A direct debit should bounce if it will take you into an unauthorised overdraft, however you can incur charges for this (I believe from both parties), so sometimes the bank may allow it to go through.

If you mean from an authorised overdraft, then as far as anyone but you is concerned, it's all available balance, otherwise how do you think anyone would ever get into their overdraft? ;)
 
Vixen said:
Do you mean an authorised overdraft, or unauthorised? A direct debit should bounce if it will take you into an unauthorised overdraft, however you can incur charges for this (I believe from both parties), so sometimes the bank may allow it to go through.

If you mean from an authorised overdraft, then as far as anyone but you is concerned, it's all available balance, otherwise how do you think anyone would ever get into their overdraft? ;)
Click to expand...

By authorised, you mean one the bank has specifically given me (as in my contract/whatever) and an unauthorised being one where I happen to purchase beyond my actual funds and where the bank has not stated that I have an overdraft?

Well, my card gets bounced everytime I try to use it to purchase goods online when I'm in my overdraft...so I assumed the same would apply here.

It seems like I have a lot to learn. :o
 
=C0ld c4Th0d3= said:
If it's just taken out of my standard overdraft, then 'everything should be alright' as I have a £1800 overdraft at a low interest rate...phew.

:o
Click to expand...


u have an overdraft with an interest rate? you're a student! exploit the banks, they all offer interest free student overdrafts, halifax the most, but thn again you have to be with halifax. if u use trains get a natwest student account.
 
The request for the funds will be made to your account, it the funds are there (including your overdraft) the money will be taken. If the funds are not available then the requested amount will not be paid but you will incur bank charges.
 
Also to add it should go through however you will prob end up with charges from the bank and the housing people
 
Thanks for clearing it all up folks. It's a weight off my mind now.

Er, actually there's no interest, lol, my mistake. I'm with HSBC. The World's Local Bank. :rolleyes:
 
elitetrick said:
u have an overdraft with an interest rate? you're a student! exploit the banks, they all offer interest free student overdrafts, halifax the most, but thn again you have to be with halifax. if u use trains get a natwest student account.
Click to expand...

Yep. I've got a £2750 one, interest free for 5 years :)
 
I've always cursed not being able to purchase online with my overdraft - but if I had a £2750 overdraft I'd be on OcUK purchasing everything :x
 
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