Bank charges

[maximo]

Hello. I had a look at my account yesterday, and realised I was over my overdraft limit for about �15. I'm getting paid tomorrow at midnight. The reason I'm so overdrawn is because work "forgot" to pay me for 4 days last time. I am getting the money back tomorrow, but this means that I will have been over my limit for 3 days. I just called my bank, and they say I will be charged �20 for going over the limit, plus �30 for each Switch transaction I have made in that period. I asked if there was anything they could do about the charges, as it's the first time I have been over the limit. The person I talked to said no, no way -she was very unhelpful. My question is : is there a point in me writing to the bank and asking them to cancel the charges ( or part of it ) as a goodwill gesture, or is it hopeless ? I find it very unfair to be charged that much for 3 days over the limit !Thank you for any advice.

[peterd]

This happened to me recently & the bank waived the �28.00 charge due to the fact it was the first time we'd gone over our overdraft. I spoke to the personal lending dept. If no joy try the nearest branch, although if you are regularly over yr limit they may not be so helpful. Blame your workplace as much as poss & they might surprise you

[CheekyChops]

Bank charges are always unfair! You could try writing to them and explaining the situation, they probably won't do anything but it has to be worth a try.

Failing that, could you not claim the charges back from you employer, seeing as it is their fault it has happened?

[andy-hughes]

I would write a polite (!) letter to the bank explaining the situation, and asking for the charges to be waived on this occasion. These punitive charges are in place to prevent persistant offenders from running their accounts badly, but the innocent often get cuaght in the net.

If your bank are not sympathetic, move your account - the competition for accounts has never ben fiercer - any of the other high street banks will welcome you if you are employed and solvent.

[Oneeyedvic]

1. Definitely write a letter and if possible fax it to the correct department.


2. Ask your workplace o compensate you - it is partially their fault.


3. One thing about moving your acount - most banks will want to see your last 3 months bank statements and be concerened that you are going over an overdraft limit. Current accounts actually cost banks money - it is only their other services (credit cards, loans mortgages etc) that gain them money. If you are not going to give them much money then you may not be a great custoemr now (and banks don't often take a long term view)

I really would write/fax the letter - personally I find faxes much more effective.

[khana]

Ring and speak to the Personal Lending Department as susggested. I use to work as a credit manager for one of the clearing Banks and refunded charges all the time....if it was the first time !

Your local branch probably does not have the authority to refund charges.

[stevie21]

On the one hand the bank could say that the charges aren't really your fault (well, they arguably are but lets not...), but they're not the bank's either so why should they pay?

On the other hand, you could easily ensure that it cost the bank more to enforce the charges than it would cost them to reverse at least one of them.
How much in total are the charges?
Also, which bank is it? This might have quite an impact on the outcome.
Finally, do you have any significant other business (loan, mortgage, credit card) with them that you can use to add weight to your argument with?

[Gevs1966]

The reason you are overdrawn by �15 is not your work's fault it is your fault. It is your responsibility to run your account, that means not spendig more than you have available to you.

The bank may waive the charges if this is the first time but they may say what I just have and charge you what they are entitled to as stated in your account agreement.

[maximo]

Thank you for your answers everyone ! I'm only replying now because I was away for an exam. It was definitely the first time I was over the limit. I don't know yet how much they charged me, as I don't have an internet account, and my bank is in Scotland ( I live in Belfast now ). I will try the letter option, as soon as I have the facts ( ie : how much ). I will also try to speak to my work ( yeah, fat chance...).

Anyway, thank you for your usual useful input everyone !

[mike143]

The charges the bank are making are unfair and possibly unlawful as they are disproportionate to the losses they incurred by you going overdrawn. Dont write a polite letter to them - write a letter telling them that you REFUSE to pay the charges and they MUST reimburse you immediately. If they refuse to do so, threaten to take them to the small claims court. If the charges they made were enforceable, they would never give a "goodwill gesture" refund.

[oscartony]

Bank charges are not legally enforcable if they are penalties. Penalty clauses in contracts in English (and Scottish) law for breach of contract are not legal if the penalty exceeds the actual cost of the breach of either party.

We all know that it does not cost a bank 25 to 39 to return a DD, SO or cheque - so do judges, and indeed the banks. It is purely a money making scheme, and a lucrative one at that - last year Which! estimated that the top 4 UK high street banks made 3 Billion from these charges alone. One in Five bank customers incur these types of charge, and because it's a bank imposing them, most assume that the bank must be legally entitled to do so.

Under the 1977 Unfair (Contracts) Terms Act, the sheer fact that ALL banks make these charges makes this arguably unreasonable and therefore invalid (the example given is exactly that!).

This is also a breach of the 1999 Consumer Credit Act (Unfair Terms in Consumer Contracts - the OFT is already investigating the charges levied by Credit Card Companies) and possibly the Supply of Goods and Services Act.