Urgent help- invalid application due to payment!!!

[Rose6363]

Hello,
I have applied for my tier-4 general student extension on 01/08/2011 by next day delivery. My visa expired on 03/08/2011. Today ( 09/09/2011) I have got all my documents back along with a letter saying that the application is invalid due to declined transaction inspire of having enough funds since last 4 months.
Since after the first week I have posted my application I been to bank every week and finding whether UKBA has tried to take money from my account and also I used to call to customer service of lloyds tsb to know if there are any declined transactions, but all the time I got the same answer " no one tried to take money from your account, if they want to then the funds are available so no problem"
In the letter they mentioned that I can make a fresh application, but I got some doubts to clear before I make:
1. Am I a overstayer?If I am what should I mention in my fresh application ( in the D10 & D11 questions)?
2. What information I need to mention in the covering letter?
3. Do I need a letter from the bank saying there are no declined transactions and there were enough funds?
4.now i want send it by postal order, do I need to still submit with a fresh application or shall I send the postal order attaching with the old application?
5. Can i send my fresh application with the same CAS letter which I got it from my university on 26/07/2011 and also the same photos?

Please moderators, please advise me so that I can make my applicaton in the coming week asap.

Many thanks

[geriatrix]

Please continue in the existing topic.