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£53 in charges for £2 overdrawn

#1
The wife went overdrawn by £2.04 and is now getting £53 in charges. She went overdrawn at 23:50 and at 00:01 my wages went in so they want £53 for a 10 minute loan. Well Halifax after 22years banking with you, I'm closing my account. When I went to ask about this the guy I spoke to may as well have been the "Computer says No" woman from little Britain.

Also transferring all the kids savings accounts, As well as my long term savings, disgusted with their attitude.
 
#2
Good for you. I'm going to close my Halifax account soon after a bit of admin is finalised. I got a small mortgage with them 20 years ago and as a young man I struggled to adjust my finances for a few months, often going overdrawn by a few quid here and there. Each time they'd charge me £20. While I'm on top of it all now I still feel bitter about their greed all those years ago.
 
#3
Middle of a house and job move so things got a bit hectic, Never bothered with an overdraft though they keep offering me up a £6000 overdraft. So when I point out to them that they keep offering a huge overdraft that I don't want, yet want to charge me 50 times the amount we accidentally borrowed. I just get the response of pay the charges. Robbing bastards.
 
#5
Abbey have charged me £45.16 for exceeding my overdraft by £39.73 for part of a day. If they had listed the cheques I paid in first, rather than last, I wouldn't even have gone over. There is a test case running at the moment, basically charges should be fair, and not punitive.

Write in and complain, you might get your money back and stand to lose nothing more. There are some stock letters at Bank Charge Letters

You should get an acknowledgement and that they are waiting for the outcome of the test case.

There also a similar link at the botton of this thread.
 
#6
Josey I went into the branch today and had to leave as I was ready to drive my hand through ignorant girl I spoke too. Trevor will check that link tomorrow bed calls now up at 00:dark hundred.
 
#7
My local branch of Lloyds, (Southsea, Portsmouth) are good.

They cancel corporate charges and phone me afterwards to confirm.

It is still down to the quality of the local account managers.

Lloyds, Palmerston Road, Southsea...... excellent bank, still run in a traditional way.
 
#8
Posting as an individual rather than my job title: I also use Lloyds TSB and have done since get go.

I switched to the Plymouth branch whilst based down that way (as they have dedicated staff for service personnel) and only shifted to the Cox and Kings branch recently as I've settled closer to town (again they have dedicated staff for service personnel).

Holts is another bank that has dedicated staff, seem decent enough and are part of RBS.

PB
 
#9
It's the old Catch 22, the Bank allows people to do over drawn in order to make money, but your wife should have kept her books upto date. I got hacked off with my last bank and moved to www.smile.co.uk it's an on line bank run by the Co-Op Bank. You can pay in cheques in you local Post Office and their customer services is fecking fantastic.
As for claiming back your bank charge you may have missed the boat for 6 months.

Leave them!
 
#10
PAXBloke said:
Posting as an individual rather than my job title: I also use Lloyds TSB and have done since get go.

I switched to the Plymouth branch whilst based down that way (as they have dedicated staff for service personnel) and only shifted to the Cox and Kings branch recently as I've settled closer to town (again they have dedicated staff for service personnel).

Holts is another bank that has dedicated staff, seem decent enough and are part of RBS.

PB
I'm with them too-whilst all banks are bellends, they're not too bad when it comes to dealing with service personnel.

I went overdrawn last week for the first time ever since I opened an account with Lloyds over 11 years ago (due to an unexpected overnight stay in hospital and not being able to transfer money into my current account). £11.02 overdrawn and they were going to charge me £27-one phone call and a threat to take my banking needs elsewhere later, they had canceled the charges.

Be ruthless with them-they will back down when they realise they'll lose business.
 
#12
squiffy_parsons said:
The answer is don't go overdrawn, simple really.
Bit hard to do when the banks want you to go OD. If they did not they would would not let you withdraw cash you do not have. Once they have you in the OD hole they will own your soul!
 
#13
Unfortunately, I actually work for a bank one of you has mentioned (I hate every second of it which is why I'm going on tour next year). In a charges department (try justifying something you don't agree with!).

The problem is that when you ring and threathen to take your business elsewhere the person on the other end of the phone doesn't really care. They just want to finish their shift and go home, their wages will still get paid the same regardless on whether you leave or not.

What you need to do is make sure you escalate every compaint to your banks customer relations team/complaints departments. Managers are useless as its their job to manage people and shifts and that's it, most of the time when they promise you call backs etc. their just fobbing you off as the likelyhood of you ever speaking to them again is minimal. (all this could be fixed with giving advisors a bonus or penalty for retaining customers...)

Going to your local brach is useful because obviously you know the person your speaking to and where he/she works thus it's easier to complain about that person if something they promise you isn't done (and they will deffinately know this!).

The other thing to know is that all banks charge for the same reason and around about the same amount. You may get charged £10 for going overdrawn with bank A and £30 for doing the same with bank B, but bank B will more than likely charge you less for something that bank A would have charged you more for - if that makes sense!

Some banks may be more leniant than others, the one I work for has a policy of refunding 2 charges every 12 months, others have more, some less but you won't find one that will give you everything back. In my department we're allowed a little more slack with giving them back under exceptional circumstances such as being in hospital etc.

Reference the 6 years worth of bank charges, if you write a letter to your bank asking for them back, you'll just get one sent back saying the county courts have said banks don't have to give them back now until the high court case has been decided. Unfortunately you missed that band wagon awhile back when banks were litteraly throwing the money back at you if you worked out how much you had paid in charges over the last 6 years.

I personally hope that the courts stop banks being greedy feckers as it'll make my job more bearable. I've seen some extreme cases where people can't afford to live as their in such a state with spiralling bank charges of £500 + per MONTH as all their bills keep bouncing because the bank keeps charging them! The only option is debt recovery which isn't a pretty one, loosing your cards on your account, not able to use direct debits etc. Alot of cases I see are gamblers making small £5 bets over and over again even though theres no money in the account, because it's a small amount the bookies aren't authorising the payment so it still goes through and they'd get charged £30 per card payment.

Reading back on that it doesn't make that much sense and it's structured pretty cack also, so please forgive me but i'm hungover...


W-60
 
#14
Of course you aren't with the Halifax, you're with HBOS. We took two organisations that worked and put them together, buggering both of them. I jacked in the Bank of Scotland/HBOS after one f*** around too many; allow us to muck you about over your TESSA transfer, allow us to send your stuff to someone else, no you can't ever phone your branch, sign this false document it's only a formality for our records and the revenue will never see it.....

I moved to the Nationwide. Apart from their credit card operation they are pretty good.

But the whole HBOS group, including Birmingham Midshires, are a disaster.
 
#15
the_matelot said:
PAXBloke said:
Posting as an individual rather than my job title: I also use Lloyds TSB and have done since get go.

I switched to the Plymouth branch whilst based down that way (as they have dedicated staff for service personnel) and only shifted to the Cox and Kings branch recently as I've settled closer to town (again they have dedicated staff for service personnel).

Holts is another bank that has dedicated staff, seem decent enough and are part of RBS.

PB
I'm with them too-whilst all banks are bellends, they're not too bad when it comes to dealing with service personnel.

I went overdrawn last week for the first time ever since I opened an account with Lloyds over 11 years ago (due to an unexpected overnight stay in hospital and not being able to transfer money into my current account). £11.02 overdrawn and they were going to charge me £27-one phone call and a threat to take my banking needs elsewhere later, they had canceled the charges.

Be ruthless with them-they will back down when they realise they'll lose business.
Matelot/PAX, I'm also with LloydsTSB in Royal Parade, joined up eleven years ago and coming from Northern Ireland didn't have an English bank account so opened with Lloyds in basic training. I guess through laziness, which the big banks rely on, I have stayed with them for the past eleven years despite their pitiful amounts of interest each year.

Last May I had accrued quite a bit of cash in the account and so decided to pay off 10% of my mortgage, unfortunately I had also written a few large cheques to my building manager and had just been to NY for Fleet week and so ended up £12 overdrawn(unauthorised overdraft) during the last 48 hours of the month of May.

I understand the argument that the £12 was not my money to go overdrawn on but have now been penalised with a fine of £65 and just don't think that the loyalty I've shown Lloyds over the past eleven years has been recognised on their side. But then they are there to make profit, its not like they are a charity!

Am currently checking out alternative banks and will probably move to Alliance&Leicester.
 
#16
Many years ago I came home on leave in the course of which I went 49.5p overdrawn in my NatWest account.

After 1 week they wrote to me asking me to put some money in the account within 7 days. Mummy was despatched to the bank and paid in 1 pound (this was 1975).

2 weeks later a letter arrived saying that as I hadnt paid in any money they had written off the debt and closed the account, I wrote back pointing out the recent credit, to which they responded by sending me a cheque for 50.5p saying that if i cash the cheque they would close the account.

I still have the cheque, it was never cashed. The account remained open with 50.5p credit for many years during which I updated them after every change of address but there were never any transactions through the account. During that time they sent me regular statements etc but after about 10 years they stopped arriving.

After 12 years I went to the branch and asked what the balance was. I was told the account was closed, that as there had been no transactions for 10 years it was bank policy to close the account and transfer any balance to the banks account as this was then deemed a "Dormant Account".

After some jumping up and down and stamping my feet in the branch I got a new account opened with the old balance plus interest (I think it came to just over a pound).

Same as before I then proceeded to run no transactions through the account and they still had to administer the account and send me regular statements. After the subsequent 10 years I withdrew the money and closed the account.

I dont know how much it cost to administer the account for that amount of money but it gave me some satisfaction that they had been forced to do it.

Batsards!!!!!!!

I now bank with LloydsTSB and have always been happy but then I use a local branch from home.
 
#17
I think I have an account with about £7 in it with NS&I....but to close it i have to make it up to £100, then get the account changed to a currently available account and then close that account...can I be arrsed?

My wife also has an account with HSBC with the grand total of £1.12 in it, again we just can't be bothered to close it and she still gets the statements.

S_R
 
#18
Went through this nonsense last year with NatWest when our branch chairman sent off a cheque before I had a chance to transfer enough money into the current account to cover it and we got bounced 2 charges of £20. I managed to get one charge refunded by chatting to customer services at the local branch but they dug their heels in over the second.

As mentioned before, there are a number of standard letters which you can send, each one upping the ante until you end up threatening to take them to court. I got to the 2nd letter before they wrote back offering to refund the charge 'as a gesture of goodwill'. In the end, all the branch lost was just over £1 in interest which we took on the chin.

It is worth writing, but, like everything with big companies, you have to persevere and not be afraid to go to the wire if necessary. Remember, they will drag their heels (our refund took 6 months) in the hopes that you will just lose interest and drop the matter.
 
#19
Whiskey_60 said:
Reference the 6 years worth of bank charges, if you write a letter to your bank asking for them back, you'll just get one sent back saying the county courts have said banks don't have to give them back now until the high court case has been decided. Unfortunately you missed that band wagon awhile back when banks were litteraly throwing the money back at you if you worked out how much you had paid in charges over the last 6 years.

W-60
Further to my post and W60's comment's, here's a letter I got From Abbey today.

OFT v Abbey & Others - High Court case

We previously wrote to you about your complaint regarding unarranged overdraft charges and advised that, we, along with a number of other banks, ("the Banks") and the Office of Fair Trading (OFT) were involved in legal proceedings in the High Court to decide the legality of charges in this type of circumstance.

We write to update you following the judgment in the High Court case given on 24 April 2008. As explained below, this judgment deals with some preliminary issues relating to unauthorised overdraft charges and was given after the first trial in the test case process. That trial was not the final hearing in the test case process.

A Case Management Conference ("CMC") also took place on 22 and 23 May 2008. This was a procedural hearing to decide the next steps in the test case process.

What was the first trial about?

At the hearing that ended in February this year, the Judge was asked to decide whether the Banks' terms and conditions relating to unarranged overdraft charges are capable of being assessed for fairness under the Unfair Terms in Consumer Contracts Regulations 1999 ("UTCCR's") and capable of amounting to penalties at common law.

What does the judgment say?
This judgment - which contains important points for both the Banks and the OFT to consider ¬marks the first stage in the test case process. The Banks remain committed to resolving, through the court, the legal issues concerning unarranged overdraft charges. The judgment illustrates how complex those issues are.

The court has decided (subject to appeals) that the banks' current terms and conditions relating to unarranged overdraft charges:

• Are not unenforceable penalties; but
• Are assessable for fairness under the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs).

The banks are pleased that the court has agreed that their current charges are not unenforceable penalties.

What happens next?
At the CMC on 23 May 2008, the Judge made the following decisions in relation to the next steps:
• The Banks are allowed to appeal the Judge's decision in relation to the UTCCRs. It is expected that this appeal will be heard in the Autumn.

• In the meantime, the Court will be asked to consider whether terms and conditions previously used by the Banks are capable of being penalties. A short hearing to decide this took place on 7 to 9 July 2008. The Court will give its judgment some time after the hearing although it is not yet possible to confirm when this will be.

The Banks and the OFT agreed that the case should move forward as quickly as possible. With assistance from the Court, this has been achieved to date and the Banks are committed to ensuring that this remains the case going forward. At this stage it is not possible to predict when ~ case will be finally concluded.

What this means for your complaint?
As previously agreed with the Financial Ombudsman Service and FSA, customer complaints relating to unarranged overdraft charges will continue to remain on hold. The FSA agreed to this subject to conditions that protect your rights.

The Banks will also continue to ask County and Sheriff Courts to keep cases relating to arranged overdraft charges on hold until the test case process is concluded.

Further help
You have the right to refer your complaint to the Financial Ombudsman Service (FOS) or the courts. However, the FOS has agreed not to act on any complaints until the legal proceedings between the Banks and the OFT have been concluded. Should you issue a claim in the Courts we will apply for a Court order to put your claim on hold pending the outcome of the proceedings in the High Court.

Further information
A copy of the text of the full judgment can be found at www.iudiciary.gov.uk and further information is available on our website at www.abbey.com.
thank you once again for your patience. [/i]

So they are allowed to charge, it's yet to be decided whether the charges must be fair.

If anyone has doubts about the worth of writing in to complain, on two occaisions in the last 18 months my other half had problems getting her debit card renewed. Abbey stumped up three payments, £20, £25 and £55. That's not bad for writing 3 letters.
 
#20
You might want to look here http://www.moneysavingexpert.com/reclaim/
The charges are covered by unfair cotractual terms rules. The only problem with the current situation is that the FSA has allowed banks to place on hold any chrage refunds until the case is settled.
Get your requests for refund charges in though because as soon as the banks have lost the court case its going to take them a while to clear the backlog
 

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