Personal Finance

Bank rip-off for exceeding overdraft

Does anyone have an account with a bank which doesn't rip you off?

I tend to stray slightly over my overdraft limit once or twice a year due to a miscalculation on my part, and they charge me £35 to £40 each time.

Being very generous, it might cost them a fiver at most for having to send a letter or two, and I'd happily pay that much.

I expect all the banks are as bad as each other.

weggiewabbit Wed 14/05/08 01:19

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Ice.Maiden
Wed 14/05/08
01:21

I understand you can now claim these exhorbitant (??) charges back.

horselady
Wed 14/05/08
09:05

Lloyds tsb charged my husband about £25 for going 96 pence over his limit. To be fair, they dropped the charge immediately when he phoned them.

CheekyChops
Wed 14/05/08
09:52

Well definately don't go to NatWest!

I exceeded my overdraft by £24 in April (my fault completely, I forgot my council tax DD had started again!)

On 6th May I was charged £28 for exceeding my limit - fair enough, I was expecting this. On 9th May, I was charged a £30 referral fee which I wasn't expecting and which took me over my limit AGAIN!

So I was charged £58 and now I'm going to be charged again next month because their charges took me over the limit again.

tigerlily11
Wed 14/05/08
09:55

My son has had this problem contiually with Lloyds.
Thye didn't stop a DD when he asked and as a result he was going over his limit and they were charging him making it hard to stay uner his limit.
I would recommend Lloyds to any one.

tigwig
Wed 14/05/08
20:14

can you not get an agreed overdraft so these charges don't happen?

weggiewabbit
Wed 14/05/08
23:16

Question Author

Exactly as I thought!

I already have an agreed overdraft; I once asked them to extend it by a mere £50 but they said no. I can see why now!

This is the Halifax/Bank of Scotland, by the way.

OK, I should have checked more carefully, I know. I’ll ring them and see what they say. I only went over by a couple of quid, and I had some money in my other current account which would’ve covered that if I’d thought to transfer it beforehand.

I must look into the “excessive charges” thing too. If that applies, then why are they still doing it? Some people won’t bother pursuing it is the answer probably.

I’ve just encountered ANOTHER RIP-OFF too. I often work on Bank Holidays, and I’ve parked on single yellow lines for years on those days without any problems in Leeds City Centre. The last Bank Holiday (Monday 5th May) I got a ticket. They never had any “Parking Attendants” working on Bank Holidays before. This is a new revenue-raising tactic, so watch out on the up-coming Spring Bank Holiday (26th May) and make sure you don’t park on single yellows before 6pm and get caught!

Goodsoulette
Wed 14/05/08
23:22

arghhh cheeky chops. I know that one well. Since I gave up work, I have to live month to month and my bank, despite my pleading with them to stop it have made 100's off of me straying over my overdraft facility by a few quid. I wouldnt mind if they just charged me there and then or even on the same day of each month but they dance around, I think Im safe and bang, I'm had again.

EverClean
Sat 17/05/08
09:15

It's not a rip off - it's the terms and conditions of the account that you signed up to when you opened it.

Why should people who manage their account properly subsidise those who don't or can't?

Most banks will offer some discretion if you speak to them and reverse a charge - but usually only once.

The altenative is a monthly fee for maintaining your account and a fee per transaction.

This way is fairer. Reward those who conduct their account well and penalise those who don't.

weggiewabbit
Tue 20/05/08
01:23

Question Author

It is a rip-off. Anyone who incurs one of these charges isn’t being subsidised by any other customers – it costs the bank virtually sod all in any case.

It’s piracy on the high seas against those who are trying to stay afloat.

weggiewabbit
Wed 21/05/08
22:24

Question Author

I found an interesting link while I was looking for something totally unconnected ...

http://www.moneysavingexpert.com/reclaim/bank- charges

EmEd1984
Wed 21/05/08
22:30

i claimed back £125 in charges, with no arguments. my husband got £900

i'm amazed the banks still think they can get away with it. the thing is they will avoid going to court because this means they have to prove where the charges are made up - which they can't. money saving expert provide a template to follow, and even tell you exactly what will happen...they'll tell you no originally, until you push it again!

weggiewabbit
Wed 21/05/08
22:40

Question Author

Thank you EmEd, you’ve encouraged me!

You can go back 6 years if you need to.

weggiewabbit
Wed 21/05/08
22:48

Question Author

The banks are probably reluctant to go to court because if they contest a case and lose, it will set a precedent and really open the floodgates even more. It looks like they know they haven’t got a leg to stand on.

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