Bank charges.

dchurch24 · 13 April 2005 at 11:30AM

Hi,

recently (the last 13 months) I have been charged roughtly 150-250 pounds per month in bank charges due to unpaid DD's SO's etc... mainly bought about by my (ex) employer not paying on-time, or the correct amount (strangly, never more than I was due, always less!). Each month there are more charges as the charges from the month before push me over my OD limit etc., etc...

As a result of loan payments being missed due to this reason, I also incured non-payment charges there.
About 7 weeks ago, I wrote to the loan company suggesting that they pretty much write the debt off and leave me alone (in so many words), as the majority of these charges were due directly to being mis-informed by one of their own advisers.
Instead, they offered to take all the charges made in the last year and credit them to the account bringing the debt down to 152 quid. They also put in the letter, 'upon reciept of a cheque for 152 quid we will close the account and the matter will be closed.'

Even though, the amount would still not be 152 quid if their adviser had given me correct information at the time, I offered to pay the 152 once my credit report had been repaired by them. The reason being that they advised me not to pay the loan (long story, but true), and therefore I don't see why my record should show non-payments.
The bank has just phoned me to ask if I am going to accept their offer (after not recieving a reply from them after 6 weeks, I complained to the FO - and they've just received a letter from them).
My question is: should I just accept and pay the 152 quid, or should I hold out for having my credit history repaired and risk having the charges added back onto the account?

Also, I have read that bank charges (penalties) are not enforcable under British law and am considering attempting to recover these charges from Abbey for the past 13 months (particluary as I have consistently been in contact with them and pleaded with them to help as the initial problem was caused by someone other than myself). Has anyone done this, and if so, is it likely that I will recover these monies?

http://www.bankchargeshell.co.uk/charges.html

The loan company is phoning back this evening for an answer from me!!!!!

mountainofdebt · 13 April 2005 at 4:16PM

how much time and effort you are prepared to put into this as to whether you should do it or not.

I personally would take the loan company's offer .....at the end of the day you would be paying this money to them whether or not they repair your credit record or not. I can understand why you would feel bitter about your credit record but I think I am right in saying that you can add comments to individual entries and provided there isn't anything else lurking in the back ground then it shouldn't have too much of an impact.

As for the bank charges I personally feel that the matter should have been taken up with your ex employer. I too (for the last 2 months) have been paid late but my employers have paid any bank charges that the staff have incurred.

(Personally I'm not brave enough to take on the bank when I know I'm in the wrong!!)

If anyone should be taken to court over the DD charges its them!!!

Xbigman · 13 April 2005 at 4:59PM

I'd pay up too. It sucks but there you are.

I'd certainly go after your employer for the bank charges. Put it in writing to them with an itemised list of the charges and photocopies of your statements.

For anyone else with this problem (or just geneal financial issues) DD's are the fastest way to get yourself in more debt to the bank. Dump all DD's except mortgages or secured loans, TV licence payments and insurance payments. Write immediately to every one concerned (with proof of posting) and tell them you've done it. Now pay by check or cash.
Regards

X

dchurch24 · 14 April 2005 at 10:39PM

Hi thanks for the replies.

The loan company actually phoned that day while I was at work, and I told them that I couldn't talk about it while at work, and they could call me between 6 and 11.

They, of course didn't.

So when they phoned me again at work today, I was not happy, and told them so, including asking for my credit history to be corrected - which, suprisingly, they agreed to!
So then I said that I wanted them to drop the remaining debt of the 152 quid - they refused, but did drop it to 100 quid as a 'gesture of goodwill', which I said I would send once I am in receipt of proof that my credit record would be amended.

So a good result all round!!

You are correct in saying that you can add comments to individual entries on your credit record, although, sadly, having worked for financial companies in the past I know that certain companies will just refuse any credit point-blank if there are any comments added without even scoring you!!

Still, it's all academic now as my record will be clean again, although they did explain that it might not be updated until the end of next quarter!!

I have just written a letter to Abbey National explaining the situation and asking for my charges back from them as well.

I did contact my employer at the time the charges were made (as really the fault lies with them), but they refused to be of any help at all, saying just 'tell the bank you're not paying them!'

Very helpful - NOT!

The company now, no longer exists (I believe they went bancrupt,so not much chance of getting the cash out of them now :-( ), and I am now working for a much better firm now, thankfully.

I have indeed cancelled all but the essential DD's and SO's - although it is very difficult as cash point machines only allow withdrawal of 300 pounds per day, and my bills, which need paying on the same day combine into a larger amount than this.
I really don't want to pay by cheque, as you are at the mercy of the person/company cashing the cheque at a time when you have funds to cover it - otherwise the bank will charge (and I'm still not convinced that this is legal) more for a bounced cheque than a non-payment of a DD.
I will have to shuffle some bill payments around to make it fit ;-)

Thanks again for the replies chaps - much appreciated.

Bank charges.

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