# Unauthorised overdraft due to former employer not paying up



## WORRIEDSICK (26 Nov 2007)

Can anyone please advise me as to what to do, i am worried sick.

In the last three weeks I have been paid by my current employeer and due due to be paid on the same date by my old one, had an e-mail the day before the date we were due to get paid from old company stating this, I have now ended up overdrawn on my current account on which i do not have an overdraft and dont know what to do at this stage as our christmas salary is due to be paid in the next 2 weeks and this will be eaten up, can anyone give me any advice????


----------



## Stifster (26 Nov 2007)

*Re: unauthorised overdraft*

Is the question about getting the money due or the overdraft?

Banks always run "unauthorised" overdrafts for people, especially if you have a good history with them. Call your branch and explain what has happened. They will however penalise you for each transaction while overdrawn (around a fiver) as well as charge interest on the balance in the red.


----------



## demoivre (26 Nov 2007)

*Re: unauthorised overdraft*

I don't fully understand what the op means re. the salary situation, but as Stifster says contact the bank and get an overdraft sanctioned asap to eliminate referral fees and higher interest charges than those that  apply to a regular overdraft facility. Also there is no guarantee  the bank will keep paying items presented on you current account,with no funds/sanctioned overdraft facility, so get a formal agreement in place imo.


----------



## efm (26 Nov 2007)

*Re: unauthorised overdraft*

I agree will all the above - talk to your bank immediately - if you can bring proof that wages are due to you and haven't been paid bring it along so that the bank have something for their files.


----------



## Guest114 (26 Nov 2007)

*Re: unauthorised overdraft*

If you are a new customer of this branch, they will not tolerate unauthorised overdrafts and will bounce items on you. They will be less strict if you have a good credit rating with them and have been with them for a while. Be careful of bounced items as you won't see them on your account - the only thing that shows up is the unpaid charge.

You could probably negotiate a temporary overdraft with your branch for a few days if it is really worrying you.


----------



## footsteps (26 Nov 2007)

*Re: unauthorised overdraft*

Just, I have no overdrafts on my bank a/c but have overdrawn on occasions and charged for the priviledge. I would sooner have bank machine say insufficent funds than be charged €4.50 without being warned, very unfair!


----------



## teachai (26 Nov 2007)

*Re: unauthorised overdraft*

Talk to your bank asap about getting an authorised overdraft.  Try not to use it, but next to a mortgage its the cheapest type of loan you will get.


----------



## bond-007 (26 Nov 2007)

*Re: unauthorised overdraft*

How do you get them not to pay? They always seem to pay items that can be bounced and bounce items that are essential.


----------



## WORRIEDSICK (26 Nov 2007)

*Re: unauthorised overdraft*

I called the bank this morning and explained the situation, they seemed pre-occcupied and seemed like they werent really listening, I also called my old employeers and she is now saying that they are waiting to figure out what percentage of my pension I am sure back before they will lodge the payment!!! She said it could be Janruary 25 pay!!! I asked her to call the bank and explain this to them, whether she will or not is a totally different ball game now!!!!


----------



## ClubMan (26 Nov 2007)

*Re: unauthorised overdraft*

Your situation with regard to salary payments by your current and/or previous employer is also not clear to me from your posts to date and whether your query/problem is with this or with the bank/overdraft or what.  Can you clarify what the story is please?


----------



## WORRIEDSICK (26 Nov 2007)

*Re: unauthorised overdraft*

sorry, have started a new job in the last 6 weeks was paid on time from current employer but was also due to be paid by the last job in and around the same day as my salary went it. I therefore paid my mortgage and bills and now have ended up with an overdraft which i not approved by the bank...


----------



## ClubMan (26 Nov 2007)

*Re: unauthorised overdraft*

I don't understand - why are you having difficulties securing payment of wages outstanding from the old job/employer?


----------



## WORRIEDSICK (26 Nov 2007)

*Re: unauthorised overdraft*

they were due to pay the salary in last month but still have failed to do so, I have called them on serveral occasions and they are saying that they cannot pay the salary until they recieve something about my pension payments while I was with them. Thats the problem with the old employeer and because this monies has not be transfered inti my account I am now over drawn they are saying that it pay not be paid in until the Jan salary date of Jan 25th. In the meantime it means I am overdrawn and that my Christmas salary will now to eaten up by the Overdraft....


----------



## efm (26 Nov 2007)

*Re: unauthorised overdraft*



WORRIEDSICK said:


> I called the bank this morning and explained the situation, they seemed pre-occcupied and seemed like they werent really listening, I also called my old employeers and she is now saying that they are waiting to figure out what percentage of my pension I am sure back before they will lodge the payment!!! She said it could be Janruary 25 pay!!! I asked her to call the bank and explain this to them, whether she will or not is a totally different ball game now!!!!


 
Did you ask your bank for a temporary overdraft?  What did they say?


----------



## ClubMan (26 Nov 2007)

*Re: unauthorised overdraft*



WORRIEDSICK said:


> they were due to pay the salary in last month but still have failed to do so, I have called them on serveral occasions and they are saying that they cannot pay the salary until they recieve something about my pension payments while I was with them.


Thanks for the clarification. You need to get more specific details about why they cannot proceed now. On the face of things it seems unreasonable that they are not paying you your outstanding wages etc. in a timely manner.

Your main grip seems to be with the former employer as far as I can see. Perhaps you should get onto the DETE Employment Rights section to ask them for advice?


----------



## WORRIEDSICK (26 Nov 2007)

*Re: unauthorised overdraft*

Thanks very much, I spoke with the bank this morning sorrta felt like a school child who had been bold, she said she would see what she could do, I have just now e-mailed the Hr Divison at the old job and have  cc'd the Accounts hopefully they will lodge it soon enough otheriwse I will have to get a loan to clear the overdraft


----------



## ClubMan (26 Nov 2007)

*Re: unauthorised overdraft*



WORRIEDSICK said:


> I have just now e-mailed the Hr Divison at the old job and have  cc'd the Accounts hopefully they will lodge it soon enough otheriwse I will have to get a loan to clear the overdraft


Unless I am missing something here you should not have to take this hopeful approach but rather should be onto the former employer *insisting *on payment of all monies outstanding immediately.


----------



## WORRIEDSICK (26 Nov 2007)

*Re: unauthorised overdraft*

I have lost the plot with them on the phone and via e-mail they are not disputing that they owe me the money. It was a government job and they need to sort out something with th pension I dont even want the bloody pension, I just need them to lodge the money into the account


----------



## ClubMan (26 Nov 2007)

*Re: unauthorised overdraft*



WORRIEDSICK said:


> I have lost the plot with them on the phone and via e-mail


That is unlikely to help to be honest.


> they are not disputing that they owe me the money. It was a government job and they need to sort out something with th pension


But sort out *what *and why is this preventing them paying you outstanding wages? 


> I dont even want the bloody pension


What *exactly *do you mean?


----------



## WORRIEDSICK (26 Nov 2007)

i mean they are saying the delay is that i cant just have what i have paid into a state pension back there are some strange calculations or percentages that have to come off before I get that back, I mean I would just prefer to get my salary and worry about what the owe me on the pension later


----------



## efm (26 Nov 2007)

OK - You need to prioritise your problems.

1. You are overdrawn, on an unauthorised overdraft - you need to sort out a temporary overdraft asap - don't worry about how you feel talking to the bank - banks do this kind of thing everyday and are more than happy to charge you for the service.  Ideally you want an overdraft to the amount of your expected wages due from your previous job.  But whatever the amount, you need to sort out having enough money between now and January. If it is too late today then call them tomorrow and get it sorted - go to your branch in person if possible

2. You have an issue of late payment from your previous employer - you should write to them immediately stating that you expect payment as contracted asap and that you expect any costs and / or fees incurred by you as a result of their non payment to be refunded upon production of reciepts.

Don't get upset or lose the plot with anyone as this won't help your case with the bank or your employer - be calm but assertive, have all your facts straight and get names, agreed deadlines and senior contact details from everyone you talk to.  If you do that it will work out ok.


----------



## bond-007 (26 Nov 2007)

I found it strange that they refused me an overdraft one day and the next week they allow me to run an unauthourised overdraft. Don't make sense.


----------



## efm (26 Nov 2007)

bond-007 said:


> I found it strange that they refused *me* an overdraft one day and the next week they allow *you *to run an unauthourised overdraft. Don't make sense.


 
Do you know WorriedSick? Or are you talking about yourself only in the post above?

Either way different credit rating criteria are used in authorised overdraft vs unauthorised overdraft.


----------



## bond-007 (26 Nov 2007)

Post edited


> Either way different credit rating criteria are used in authorised overdraft vs unauthorised overdraft.


The cynical would think they do it deliberately to maximise their fees.


----------



## WORRIEDSICK (26 Nov 2007)

thanks a millopn efm, I  have two messages again this afternoon with the back would it be a good idea to e-mail them??? I dont know Bond by the way also I have never have an overdraft, and dont have loans with the bank just my mortgage and a credit union loan of €8000 but have savings off about €7000 in the credit union so there is no fear of this..


----------



## efm (26 Nov 2007)

WORRIEDSICK said:


> thanks a millopn efm, I have two messages again this afternoon with the back would it be a good idea to e-mail them???


 
Well it's unlikely that you will get any answers at this hour of the evening so wait until tomorrow. Did you get the name of the person you were dealing with before? If so try and talk to her again in the morning - If you can't or she doesn't call you back by lunchtime call again and ask for someone else!

Is there any way you can go to the branch in person? These things are always sorted out faster if you arrive at the banks doorstep.

Also, make sure you keep all fees and charges levied on your account as a result of going overdrawn.

BTW get thee to the Money Makeover forum where AAM can educate you on the madness of having savings AND a loan with a credit union!


----------



## WORRIEDSICK (26 Nov 2007)

I figure with the credit union at least the money is still there will have about 15 months left on this loan.. am i wrong thanks again for all your help.
Ya I got her name and rang and asked for her e-mail could i mail and just say out of curtosey could she come back to me??? is that too rude???


----------



## efm (26 Nov 2007)

bond-007 said:


> The cynical would think they do it deliberately to maximise their fees.


 
The cynical are far too cynical for their own good!

AFAIK banks don't have sales targets for personal account fees - ie there is nobody saying "this week I want to see 15 unauthorised overdraft charges applied to our customers".

The lending criteria for an overdraft is the same as a loan - while the criteria on an unauthorised overdraft is much simpler and is based on an assumption that it will be repaid quickly (ie within 3 or 4 weeks).

Caveat - all the above is based on my limited experience and could be well outdated at this stage and I could be talking through my behind!


----------



## efm (26 Nov 2007)

WORRIEDSICK said:


> I figure with the credit union at least the money is still there will have about 15 months left on this loan.. am i wrong thanks again for all your help.
> Ya I got her name and rang and asked for her e-mail could i mail and just say out of curtosey could she come back to me??? is that too rude???


 

No that would be fine - there is no harm in keeping yourself foremost in her mind!

It might be worthwhile asking a seperate question about the credit union loan and your savings (ie split the thread) as I don't want to go off topic; but if the interest rate on your loan in higher than the deposit rate for your savings then you are losing money. Take a look at some of the other questions and comments on AAM about having savings while paying off loans - they will give you some more information.


----------

