Debit Order Query - Date of deduction.

[Werner1975]

Just a bit of background info - Have been sequestrated since 2019. Thus, I can't/ not allowed to make and debt or go into any credit contracts like home loans, credit cards, etc.
I needed a car for work and the only option was to do a rent-to-own agreement with a company, won't mention them as I may get into trouble.
Has had the car since August last year. Monthly payment goes off via debit order - no problem with that. When we signed the contract, it stated that the order will go off on the 22nd. I told them that I only get paid by about the 28th. They said no problem, the amount would be deducted when my salary comes in. There was no other option to make the debit order date at the start or end of the month.

Last month the debit order went off on the 22nd but there was not enough money in the account for the debit order to be deducted. The debit order however went off anyway, leaving me with a negative balance in my account. How is this possible?
I thought a debit order can't go off if there are insufficient funds in your account. When asking the bank about this, they say that the amount was "preserved" earlier in the month when there was enough money in the account. Is this practice allowed? This is the 1st time this has happened. Can a debit order be allowed to just go off at anytime? I have never had this happen to me before.

Please help if you know how this works. Thanks.

 

[BadBoyGP]

Doesn't this benefit you?

 

[Werner1975]

Doesn't this benefit you?

No because for a few days, until I got paid, I had no money in my account as it was on negative.

 

[Baxteen]

company messed up and used the old debit order mandate instead of the new debi check mandate.
contact your bank, despute it. most banks allow you to do it in app.
then disallow the transaction. to ahppen again.
next step is contact the company and get their bank details. set up a reccurring payment from your side to pay them after your salary comes in.
and do that for any debit order that you did not verify the date of the debit order and the amount before the first one went off. (verify before = debicheck dont do anything and have money leave account = debit order)
it should not have been possible to set up a debit order rather than a debi check since around june 2021 unless you are with a bank so far behind the times that they are irrelivant. I know at least the 16 biggest banks have all moved over to debicheck and do not allow new debit orders anymore. because the risk of customer disputing a debit order for valid reason sits with the bank not the client or the debitor.

 

[Werner1975]

company messed up and used the old debit order mandate instead of the new debi check mandate.
contact your bank, despute it. most banks allow you to do it in app.
then disallow the transaction. to ahppen again.
next step is contact the company and get their bank details. set up a reccurring payment from your side to pay them after your salary comes in.
and do that for any debit order that you did not verify the date of the debit order and the amount before the first one went off. (verify before = debicheck dont do anything and have money leave account = debit order)
it should not have been possible to set up a debit order rather than a debi check since around june 2021 unless you are with a bank so far behind the times that they are irrelivant. I know at least the 16 biggest banks have all moved over to debicheck and do not allow new debit orders anymore. because the risk of customer disputing a debit order for valid reason sits with the bank not the client or the debitor.

Thanks for the advice. Will do it. I am with Standard Bank f.y.i.

 

[epah]

Sometimes if you have a Cheque account that is always in Good standing the bank will let it go into the negative to not inconvenience you . But if this happens regularly then the debit order will just bounce and the account wont go into the negative anymore. But then you will pay the fees for a bounced debit order.