Who is liable to pay my overdraft fees?

Everymonth I pay my credit card for £24.98. This month it was due on the 20/07/16 and I made an early payment on the 14/07/16 because I knew I would struggle with money at the end of the month. However the credit card company took another payment out on the 20/07/16 and it's put my onto an overdraft. I get charged £10 per day for those overdraft fees. They said they won't be able to refund me for another 5days. That'll be £50 overdraft. The bank said they won't pay those fees and I'm certainly not paying them as its not my fault. I made my payment, so what should I do?


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Most Helpful Guy

  • If you pay your credit card by direct debit, then the day they take money out is set and not changed. Making an extra payment is irrelevant and doesn't change that they will debit your account on the AGREED upon date, for the AGREED upon amount.

    Obviously you didn't clear your credit card debt, or they would have taken nothing. So they were within their rights to take back the portion of the debt you agreed to deliver on that date.

    If you don't want to get caught like this in the future, tell your bank that you don't want the over draft facility and that if there is no money in the account, to refuse a direct debit.

    For now, you are responsible, because you don't know how the system works.

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Most Helpful Girl

  • Well, if it's an automatic payment, then they are going to take the money out every month on that day at the same time. Even if you already made a payment to them, they can still withdraw that payment.

    Did you call them ahead of time and let them know that you were paying early? If not, then they may not be liable for the overdraft fee. I know it's a tough situation. But calling them first would have been best.

    You can still ask them to pay for the fee, as you had already made the payment. But with credit cards you can pay more than the minimum payment each month on them. So they wouldn't know right away if paying early was your intention.

    Good luck!

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What Guys Said 7

  • I'm not exactly sure of the legal implications of this situation, but I suggest you contact citizens advice and seek guidance from them! :)
    www.citizensadvice.org.uk

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  • I don't think there's a lot you can do. I presume you normally pay be standing order or direct debit. If so, your early payment is classed as an additionl payment and will not stop your dd or so being paid as normal. However, your bank really should not have paid it as it put you in the overdraft position. Banks are out to make money, though, so will do what it can to make you pay out the most.

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  • To me it sounds like the Credit Card made the error and should be liable for any costs incurred - That is my moral judgement - Realistically they will squirm like a greased pig to not pay them - Bluff say you have being instructed by your lawyer to send bill to them or else sue them for charges plus legal fees.

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  • You're responsible for it still unfortunately. I would stop the automatic payments though so your credit card company doesn't/can't do this in the future and you can pay it when you have the money. It makes it your fault because you've authorized them to take that automatic withdrawl. That's why I never sign up for those things. Maybe you can get them to refund you? Good luck.

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  • You not reliable for those fees. The credit card company is now.

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  • Seek financial advice from a financial advisor, not the internet

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  • Do you need help? ;)

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What Girls Said 1

  • Why not just withdraw the overpaid amount from your CC and put it back into your overdrawn account. ?

    Its not the banks fault if you have an autopayment or direct debit setup for a certain date dont pay anything without stopping an a/p or d/d you will end up paying twice like you have and it will leave you short of cash.

    The bank is within its rights to charge those fees at their disgression as it out of the terms of your account to be in overdraft

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