Bank Charge Reclaiming: What to do if you're overdrawn discussion thread

Former_MSE_Lawrence · 12 February 2007 at 3:32PM

This thread is specifically to discuss the content of the new article

Bank Charges Reclaiming: What to do if you're overdrawn

To discuss or ask a question about this article: click reply

Please note if you want to discuss the main 'Reclaim Unfair Bank Charges' article this isn't the place. do it here

gem4 · 14 February 2007 at 8:32AM

My son's account was overdrawn by £110 entirely due to Abbey's charges after he lost his job. It had a positive balance of £1.50p before that point.

They were very selective in deciding when or whether to pay any DD in order to make maximum profit and kept reinstating cancelled DD's even though there was no money going into the account. They eventually closed it (we assume?) and passed the debt to 1st Credit where it now stands at £178 for some reason.

I've made a claim against Abbey for £254 being charges applied to the account as per statements, the majority were added after they made him overdrawn. Also referred the debt collectors back to them because the account is in dispute.

Abbey offered £149 full and final when the claim was served. I'm continuing with the court claim as this doesn't even cover the debt they say is owed, plus there are court costs in addition too.

Question is, if they pay the £254 +costs, do we then pay the £110, or the £178? Would it have been better to accept the £149 full and final settlement?

amandarose1963 · 14 February 2007 at 10:11AM

Oh dear, oh dear, oh dear! I'm in the process of reclaiming charges from my bank, Natwest and I have sent the second letter; however, I have a £2000 overdraft, no job and only incapacity benefit as an income. I just got Martin's newsletter this morning saying that it's likely the bank will want the overdraft paid back. I can't go to another bank, they won't take on the overdraft, as I'm not employed. I've even tried opening a basic bank account, but I've never heard anything from them, since my online applications. I am now rather sick with worry, so any advice would be much appreciated. I have posted here before, so am not completely new - I prefer to "Lurk" and read most of the time, which is why I don't often post. Sorry, I hope this is okay!
Best wishes
Amanda

conrad16 · 14 February 2007 at 3:48PM

I don't understand this??? If the bank has gave me a £100 od and my present balance on this account is 78odd overdrawn im within my authorised od why can't I claim my charges back if they owe me unfair charges I really don't understand because if they close my account im up 78odd pounds anyway surely as I won't pay them if they close it and I don't care anyway as I have a new account as Halifax has upset me in the past. Please someone help me understand why I need to be in the possitive to claim back

MSE_Martin · 14 February 2007 at 4:57PM

Thanks for the above notes. It's interesting to see how the article is being read.

I am going to go and tweak it - the point is "there is a chance it will be closed - how do you protect yourself if that would leave you stymied."

It doesn't mean it will be closed, or that you will be stymied. Just that it may and you may.

Going to go and tweak it along those lines.

Martin

Zedicus · 14 February 2007 at 5:05PM

I've been told by a friend that I should reclaim my bank charges and that it was an easy, straightforward process. She suggested I check here for some details.

Having read the articles and some posts it sems to me that it is a very complicated and awkward process and that if you put a foot wrong you could end up losing your money and having no bank account.

What's particularly worrying is that I'm unemployed at the moment and have a small 'credit-zone' overdraft.

Articles here suggest that if overdrawn you should get a new bank account with overdraft but how can you do that if you're unemployed?

Since I started reading this site my view of things has changed from one of looking forward to being able to get back the £1080 the bank took from me some years ago during a period of illness when I had to return from abroad to one of thinking the whole process is far too dangerous for someone in my circumstances.

I'm thoroughly confused now.

ani*fan · 14 February 2007 at 11:25PM

Hi everyone.

I'm new to this site but have been drawn in by the chance of reclaiming my bank charges. And I'd agree that the more I read, the more complicated the process becomes.

However, I have a large overdraft and am just beginning the process of reclaiming. I think that the issue is this. If you successfully claim back charges from your bank, they may automatically demand full repayment of your overdraft. Or maybe they will use your money to pay off the overdraft without your consent. (Surely illegal, but I never know what to expect from my bank. Abbey, btw.)

Anyway, if the amount you claim back is enough to pay off your overdraft, then no problem. You don't lose your money, you are just forced to use it to pay back your overdraft. Which we all need to do at some point anyway. If the amount you claim is LESS than your overdraft, you need to make alternative arrangements to pay off the rest before you claim or you could get into difficulties. And saying that, you may successfully claim and your bank won't ask you to pay off your overdraft. Who knows 'til we've tried it.

What I'd like to know is if my claim is unsuccessful, can I still be asked by the bank to pay off my overdraft and/or close my account? Just for being a troublemaker? Anyone had any experience of this?

I'm so grateful for this site just now. There's no way I'd be able to take on Abbey without the support from members here.

Gemmzie · 15 February 2007 at 9:25AM

Martin, the article says that you can't shift an overdraft directly to a credit card - Egg (standard green card) do allow this within their 0% period. Not sure about other times but the 0% is the only time I use the card

Edinburghlass_2 · 15 February 2007 at 9:57AM

ani*fan wrote:

What I'd like to know is if my claim is unsuccessful, can I still be asked by the bank to pay off my overdraft and/or close my account? Just for being a troublemaker? Anyone had any experience of this?

I'm so grateful for this site just now. There's no way I'd be able to take on Abbey without the support from members here.

Its unlikely that your claim would be totally unsuccessful and yes, any claim would be put towards reducing your overdraft which can only be a good thing.

Check out the Budgeting and Current Account board for threads about opening a new account. Martin has pointed out the risks involved with reclaiming but really the banks are not sitting there saying to themselves that one is a "troublemaker" lets get rid of him/her, more they will look at accounts and consider how the account will be conducted in the future.

MSE_Martin · 15 February 2007 at 10:41AM

My aim by writing this article wasn't to scare people into not reclaiming charges, just to show ways to protect yourself against the worst possible outcome. Im still questioning if I've got he tone right; but hopefully we're nearly there.

As for Egg normal card, yest the super-balance transfer is possible then, but to get the 0% is much more difficult and you pay a fee

new_mum_again · 15 February 2007 at 11:04AM

I had a 450.00 overdraft with abbey but claimed back 3000.00 from them last year and they didn't close the account or the overdraft although I was really glad to finally get it paid off!! I did open a Natwest account ( just one that pays dds and standing orders no overdraft or cheque book) as a parachute account though. I also got 150.00 back from capital one (then cut up the card) and am in the process of claiming back from my Dorothy Perkins account 100.00 and claiming 2500.00 for my ex boyfriend from Lloyds.:beer:

Bank Charge Reclaiming: What to do if you're overdrawn discussion thread

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free