Royal Bank of Scotland Bank Charges - WARNING!!

stuart1266 · 25 May 2005 at 10:45AM

I've just been going through my bank statements and notice of charges for March and I was amazed to see a charge of £28 applied to my account in April. I've just phoned the branch up and was told that this was because I went over my overdraft limit, in March by......£1.27!!!

The woman told me that this was an automatic charge which the branch can do nothing about to stop it being applied, however, they have the discretion to refund it, when 'the customer phones up and complains'

I'm not sure if this is a global thing, but check your charges, especially if you have a RBS account.

How on earth do they get away with it!!??

stuart1266 · 25 May 2005 at 10:57AM

I've just looked at the statement for Feb and I noticed I was charged ANOTHER £28 in March for going over the overdraft limit. This was because I was £1.27 over the limit on 28th Feb and 1st March and this crossed 2 charging periods!!

£56, out of my account, in charges, for going £1.27 over my overdraft limit for 2 days.

Can anyone tell me what the APR on this is??

grumbler · 25 May 2005 at 11:11AM

stuart1266 wrote:

...that this was because I went over my overdraft limit, in March by......£1.27!!!
The woman told me that this was an automatic charge which the branch can do nothing about to stop it being applied, however, they have the discretion to refund it, when 'the customer phones up and complains'

You are a lucky one. Just read, for example, these threads:
Please Help. First Direct charging us £185 bank fees!
I can't believe banks can get away with this...

I'm not sure if this is a global thing, but check your charges, especially if you have a RBS account.

Yes, this is common thing and, I thing, quite fair thing.

How on earth do they get away with it!!??

Get away with what?! You spent their money that don't belong to you. It is your fault. Are you saying that £1.27 is too small amount to bother about? Well, what amount looks more fair for you: £5, £50, £500?

stuart1266 · 25 May 2005 at 11:24AM

Of course it's not right. I find it morally wrong that a bank can charge that kind of cash for a very simple error that lasted 2 days and hid the charge under the description 'Maintanance Charge'!! If they weren't on the make, then why did they not bounce the cheque that took me over the overdraft? That way I would have only have been charged £20

grumbler · 25 May 2005 at 11:25AM

stuart1266 wrote:

I've just been going through my bank statements and notice of charges for March...

stuart1266 wrote:

I've just looked at the statement for Feb ...
Can anyone tell me what the APR on this is??

Now is end of May...

This just proves your negligence in running your account. I check my accounts at least weekly and plan ahead.

You go into overdraft and even over the limit and you even do not know interest rate

RBS's AER for agreed overdraft is about 10-15% depending on account. For unarranged overdraft monthly rate is about 2.2%.

grumbler · 25 May 2005 at 11:29AM

stuart1266 wrote:

Of course it's not right. I find it morally wrong that a bank can charge that kind of cash for a very simple error that lasted 2 days and hid the charge under the description 'Maintanance Charge'!! If they weren't on the make, then why did they not bounce the cheque that took me over the overdraft? That way I would have only have been charged £20

For people that cannot manage their account properly there are special 'basic' accounts without overdraft facility, debit card and cheque book. If you want to have all this you must take on some responsibility.

bargains83 · 25 May 2005 at 11:36AM

stuart1266 wrote:

Of course it's not right. I find it morally wrong that a bank can charge that kind of cash for a very simple error that lasted 2 days and hid the charge under the description 'Maintanance Charge'!! If they weren't on the make, then why did they not bounce the cheque that took me over the overdraft? That way I would have only have been charged £20

I understand where your coming from but as the other poster said, it was your fault you went over your limit and im sure if you dig out your banks T&C's you will find a fee schedule which tells you what you will be charged if you go overlimit and this is what they have done.

Sadly, because its all been done via computer there is no room for "It's only £1.27 we'll let her off". Thats the way it is and if you look at the bigger picture it is a fair way of doing things.

Thankfully if its only a small amount most banks will refund the charges if you phone them and tell them about it, as it sounds like yours has. You should take this as a warning and in future keep better checks on your account so you know exactly whats going in and out of your account. If you haven't already, registering for ebanking is a very good idea!.

stuart1266 · 25 May 2005 at 11:42AM

I think we will have to agree to disagree. I do run my accounts in a responsible manner, I was simply pointing out the extortionate charges for a small, rare error. Yes they have refunded the cash and I do have a very good relationship with my branch, as it is only small and they know who I am. I moved from 'call centre' banking as I want to talk to a real person who knows my account AND circumstances, not what a computer tells them. However, in this case, the computer said take £56 out of his account.

amandathepanda · 25 May 2005 at 1:53PM

remember that it was the computer that took the charge and not the bank staff.Computers are programmed to take fees once the customer goes over a limit agreed by the Bank and the customer, these fees cannot be taken manually by looking at every single account and saying "oh he was only overdrawn £1.27, we will let him off."
Unless you draw the attention of the Bank staff to this charge they would be unaware that it had been taken, you should be grateful for the refund given and next time you get a questionaire give them good responses for giving good customer service.

Heinz · 25 May 2005 at 3:07PM

Sorry but, ignoring the rights or wrongs of the charges, what on earth is an MSE member doing banking with RBS - they only pay 0.1% on credit balances?

I never got into trouble with them in the many years I was with them but the first thing I did when I found the MSE site was to move to a bank which pays reasonable interest on my credit balance (and, yes, the added advantage of online banking enabling me to keep a close eye on my money is a bonus).

stuart1266 · 25 May 2005 at 3:16PM

Two of the main reasons for going to RBS was that there is a branch in my village and I was told of the good service the branch provided. Overall, I've had tremendous service and all the staff know me (good or bad? I'm not sure!!), which was more than could be said about Lloyds Bank in my nearest town. I also had to drive and park there if I wanted to see anyone and I was never put through to my branch after going through the call centre.

Anyway, I've got my £58 back and I'll be more careful in the future!!

Royal Bank of Scotland Bank Charges - WARNING!!

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