NatWest bank charges - Wecot have not replied in 9 months

boomclart · 4 April 2012 at 11:52PM

I currently have one defaulted account on my credit reports which relates to a NatWest basic account I opened for the sole purpose of using for online payments, paypal, ebay etc

The reasoning behind it is the account only ever has the money in it required for purchase so anyone ever gaining the bank details via mismanagement of data by those that hold the details, i.e. online companies, means I am at a significantly reduced risk of loss.

Anyway, I requested the most basic account in person at a NatWest branch in Newcastle. The lady advised me the basic personal account I was to sign upto had no monthly fees and no overdraft and could not go overdrawn (stress this point, she said it could not go overdrawn)

Well with this being an account only used for online purchases I only ever transferred sufficient funds to then make the purchase online. The account was not monitored as I knew I always had to put the money in before I could make the payment online.

It then transpires a payment was made from the account where insufficient funds were at the time (I believe $1.36 (american keyboard, should be GBP) and NatWest still proceeded with the payment and did not decline as they should when insufficient funds are in an account which has no overdraft facility. Therefore a few months down the line I receive letters stating I have unpaid charge which I was abviously unaware of and not expecting from an account which can not go overdrawn.

I tried discussing this with the but they pointed out they could make payments within the T&Cs regardless of whether I had sufficient funds at the time to complete the payment and could then charge me.

They eventually passed this to Wecot who I have raised the issue with, advsing them that I was never happy with NatWests respsonse to my inital complaint of being charged despite being advised by staff upon opening the account that it could not go overdrawn. They have subsequently halted action on my account since 08.07.11 stating they have acknowledged my query on the account and will investigate this with NatWest and the process may take several weeks.

Well 9 months on pretty much I have not had a single piece of correspondence from Wescot or NatWest regarding the matter despite still being at the same address and with the same contact numbers.

The account on my credit reports has not been updated in any way as it was prior to opening the query with Wescot.

Is there any time period either Wescot or NatWest have to respond to such a matter before I can take further actions or declare the issue null and void in some way?

I am basically sat here twiddling my thumbs, unable to secure a mortgage or any sort of loan should I desire one. My financial life is basically on hold until these decide to pull their proverbial fingers out of their you know whats.

Any advice?

Growurown · 5 April 2012 at 9:46AM

So you aren't paying them anything back at the moment?

How much is the debt for?

boomclart · 5 April 2012 at 12:11PM

Growurown wrote: »

So you aren't paying them anything back at the moment?

How much is the debt for?

No nothing is being paid back, I could easily pay the full 441 today but that does not resolve the fact they have put a default on my credit file which I dispute.

When I discussed with Wescot I stated I would happily pay the 1.36 plus first charge if this meant the default was removed and they acknowledged the account was mis-sold.

I'm at a point now where I would pay the 441 as long as they removed the default immeadiately so I could go ahead with mortgage plans with my partner.

BigCraigJohn · 5 April 2012 at 12:23PM

If nobody is listening then you could go to the Ombudsman saying you want the debt removing and the default removing.
If i'm reading this right and you £400 overdrawn stemming from £1.36 then that is outrageous but probably all to common.
At the end of the day they can default you but that just doesnt add up.

What does the bank account agreement say about overdrawing?, if its in there that the account can not go overdrawn then its pretty straight forward and I cant see how you could lose.

Just make sure you get everything in writing, a phonecall is worth as much as someone in a bank opening their mouth and telling you something.

boomclart · 5 April 2012 at 1:41PM

OK... I've rang Wescot... they state the account was migrated back to NatWest and they have no further involvement.

Rang NatWest Collections Department and they passed me to Triton Credit Services who looking back at my letters from last year originally had the account after NatWest passed it on and prior to it ending up with Wescot.

Triton now state they have no record of this account?

So now where to go? Back to NatWest and ask them to simply remove the default as no one seems to hold any details of outstanding monies it would seem?

boomclart · 5 April 2012 at 1:46PM

Triton have now located account on a 'different' system and state it is closed and the 441 was written off a goodwill gesture by the bank as it was heavily made up of charges.

On the phone with them and querying why it is therefore still showing on my credit reports if written off after I queried the validity of the charges in the first place... let's see how this pans out.

boomclart · 5 April 2012 at 1:54PM

Triton are going to have the issue looked into by a specific team to see what can be done and I should receive a call back within 2 working days.

Looking positive that I can get this one and only default off my credit reports sooner rather than later.

Growurown · 5 April 2012 at 8:02PM

Hope you get this one resolved. My credit rating is completely shot - through my own ineptitude I have to say, but it must be really aggravating to have this happen through no fault of your own.

stclair · 5 April 2012 at 8:28PM

I don't understand how you let a debt of £1.36 get so badly out of control.

I would presume that at one point when a payment was made online via POS the transaction was not completed by the retailer and the funds was put back to your available funds then the retailer completed the transaction when you had no funds in your account which then took you overdrawn and you was charged accordingly.

Is there a reason why? you when you was made aware of the failed transaction you have let it get so out of control for the sake of the small amount.

boomclart · 5 April 2012 at 8:46PM

stclair wrote: »

I don't understand how you let a debt of £1.36 get so badly out of control.

I would presume that at one point when a payment was made online via POS the transaction was not completed by the retailer and the funds was put back to your available funds then the retailer completed the transaction when you had no funds in your account which then took you overdrawn and you was charged accordingly.

Is there a reason why? you when you was made aware of the failed transaction you have let it get so out of control for the sake of the small amount.

There was no failed transaction, NatWest honoured and completed the transaction taking my account overdrawn (classed as an unauthorised overdraft) despite the account being sold to me stating it could NOT go overdrawn and any transaction that was made when insufficient funds were made would be rejected.

The rejection never took place, the transaction went through, my account became overdrawn, charges then mounted up and in the meantime I was non the wiser as already indicated I was advised this account could never go overdrawn and the transaction I had made on it had all been successful.

There was simply no evidence until letters start appearing stating I was overdrawn and further charges were being applied.

I disputed this with NatWest and in the meantime they continued to apply charges to the account.

I refused to pay as I believe I was mis sold and should not have to pay the charges for a payment they completed when the funds were never available on an account which can not go over drawn.

It's a simple mechanism for a bank to reject a payment if funds are not available but lets be honest... if they allow some to go through and class it is an unauthorised overdraft they can hammer you home with charges.

It's a stinking system, and one I would not let them get away with.

They have written off the charges and I just need to have the defaults correctly removed from my records.

stclair · 5 April 2012 at 9:16PM

boomclart wrote: »

There was no failed transaction, NatWest honoured and completed the transaction taking my account overdrawn (classed as an unauthorised overdraft) despite the account being sold to me stating it could NOT go overdrawn and any transaction that was made when insufficient funds were made would be rejected.

The rejection never took place, the transaction went through, my account became overdrawn, charges then mounted up and in the meantime I was non the wiser as already indicated I was advised this account could never go overdrawn and the transaction I had made on it had all been successful.

There was simply no evidence until letters start appearing stating I was overdrawn and further charges were being applied.

I disputed this with NatWest and in the meantime they continued to apply charges to the account.

I refused to pay as I believe I was mis sold and should not have to pay the charges for a payment they completed when the funds were never available on an account which can not go over drawn.

It's a simple mechanism for a bank to reject a payment if funds are not available but lets be honest... if they allow some to go through and class it is an unauthorised overdraft they can hammer you home with charges.

It's a stinking system, and one I would not let them get away with.

They have written off the charges and I just need to have the defaults correctly removed from my records.

I appreciate your circumstances however im getting the impression the card payment was earmarked then the funds was released back to your account then the retailer then completed the transaction whilst there was no funds in your account.

15.3.3 You can use your card to make purchases from retailers or
suppliers of services if the front of your card displays the Visa
Debit logo and the retailer or supplier of services displays either
the Visa or Visa Debit logo. If a retailer or supplier of services
accepts payment by your card, the use of your card will have the
effect of guaranteeing the payment and we will be obliged to pay
the sum due to the retailer or supplier.

All current accounts can go overdrawn regardless of what account you hold whether it be basic or select silver etc. What account type do you hold?

For example some retailers have a floor limit of say £30.00, a purchase costing £29.99 (or less) would not need to be authorised by the customer's bank. However, a transaction of £30.00 (or more) would require authorisation to confirm that the customer has the necessary funds available in their bank account so there's a chance you could slip overdrawn in these circumstances.

Considering the dispute has been going on so long im surprised you have not raised a concern with the FOS

http://www.financial-ombudsman.org.uk/contact/index.html

http://www.natwest.com/Downloads/global_options/complaints_leaflet.pdf

NatWest bank charges - Wecot have not replied in 9 months

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