Are my bank pulling the wool over my eyes over £50 charge for one day overdrawn and is this a record?

Question

I was charged £25 twice, three months apart. Both charges were for being overdrawn once. I wrote to them asking why I was charged twice and asking for the money back 'cause it doesn't reflect the cost incurred. They didn't answer the question, but refunded £25. I think they were trying to make out I was charged £25. The same thing happened to my friend. She was told only one charge had been applied, and the other £25 was their money they had paid to her debits and she was simply paying this back to them. That's a lie! If she went into, say, minus £10, this is the money they've paid towards her debits. Then, if she deposits £20, it will show as £10 in the black. They're probably telling everyone this lie. They finally admitted to me that I only received a partial refund. So, I was charged £50 for being one day overdrawn. Most banks charge £20-£30. This is surely a record? I'm not worried about the money. I'll get the rest back if it's the last thing I do. Gonna write to the CEO

Thanks for tips on getting the money back, but that's not what I'm asking. They mislead me to believe I was charged £25 when it was £50. I knew no bank could top that. It's Alliance and Leicester. I have many table topping accounts with them so don't want to go elsewhere. I'm not usually overdrawn; infact it's the first time in my life I've owed a bank a penny.

Answer 1

Write to the Banking Code Compliance Officer. Head your letter COMPLAINT plus your name and account number. Say you want the charges refunded.

The bank's complaints procedure will click in. They need to answer your complaint within a reasonable time and tell you that if you are not satisfied, you can complain to the Financial Ombudsman. If you did complain to the Ombudsman, the bank would have to pay a fee of £300 - so they'll take the cheaper option.

Answer 2

Yes it probably is in the small print on your overdraft terms. It would help if you can go see you branch and talk about finances. They will review your account and they MIGHT waive the £50. Otherwise there will be a advantage gold account, you pay £9 a month but dont have to negotiate every time you go overdrawn. Yes I know its £100 a year but then it has other freebies to ease the pain, like free travel insurance and mobile insurance I think.
Credit cards will charge £25 if you fail to make a minimum payment and that hurts just as much.

Answer 3

Dear Terror Storm,
I want you to realize that banks are counting on the fact that you are most likely not an accountant and that you will be making mistakes. I assume that you are talking about a checking account. Here's what I recommend. CLOSE YOUR CHECKING ACCOUNT IMMEDIATELY!!!!!!!!!!!!!!! You will save hundreds of pounds per year. Pay your bills in cash in person wherever possible. For the ones you have to post, get money orders and send them money orders. (some large food stores and/or currency exchanges sell money orders at very reasonable costs) In any case, your money order fees and postage fees will be MUCH less than what the bank is ripping you off. I like your attitude about getting your money back if it's the last thing you do, but keeping the banks from charging you an arm and a leg for each of your little errors is the first thing you should do.

Answer 4

Processing returned cheques, overdrawn accounts etc. takes time and they are right to pass a fee onto the customer. But a charge like that is outrageous! Sounds like your bank is telling you they don't want your business. Pull your accounts and take your business elsewhere. Also arrange with your new bank for overdraft protection to prevent being subject to additional fees if your account occasionally is overdrawn.

Answer 5

I think you need online banking so you can manage your account better. I had trouble with my HSBC account going over drawn. Since signing up for online banking I am able to monitor my account on a daily basis and not go overdrawn,

Answer 6

You acted very well. I do not think they were actually cheating, but they are very clever in doing it in more "sophisticated" ways. They do however cancel most of them if you challenge them.

The reason for their refunds is that they are terrified of having to go to court, in case they get an unfavourable judgement which will then become a legal precedent. So be alert and watch them, but also be fair and reasonable, as you seem to be.

Answer 7

I red sometime ago on yahoo finance that bank charges are actualy iligal try a search for this subject i am sure you will find it i hope you have good luck happy new year

Answer 8

You need to go into your branch and grovel with them to try and waive the charges on your account. Tell them that you are short of money as it is. They may consider refunding back the charges.

Answer 9

im with natwest and i get charged £38 everytime i go overdrawn. you can get the charges back. ive written to mine asking for charges back. good luck anyway

Answer 10

mine have been charging me £32 a time, for going a few pounds over, I'm now going to look into claimimg it all back