Alliance & Leicester - Under funding fee

Thanks, mleonard. Your interpretation of what I meant is quite correct.

If you are exploiting a money saving type loophole, such as the ones commonly mentioned on this site, you have to dot the i's and cross the t's or you are in danger of losing, rather than saving, money.

If you fail to do so, you can't expect much sympathy from the bank/other institution that you were exploiting. Banks will often waive charges for "genuine" customers who make an innocent mistake (the first time, at least) but they are far less likely to do so for someone who is taking them for a financial ride.

Shake wrote: »

Clearly Alliance & Leicester has not followed this course of action and is in breach of the contract.

The key word is "may", ie it's at their discretion.

Even if the version of their website today does mention that £5 monthly fees will charged, this is not valid if it was not in their original contract with me, unless they have given me written reasonable notice that they are going to vary the terms of my contract.

The £5 underfunding fee was in their T&C's when I joined them in January 2006, was there when I left them in August 2007, was still there when I rejoined them in November 2007, and is still there today.

...I'm going to argue this one out with them on principle.

You won't win this one, but good luck all the same.

PS: Why drag up two old threads to make your point?

I've mentioned this before but I'll mention it again - I've had the top current account with A&L since the day it was introduced (and had an account with A&L for over 20 years now, back in the Girobank days) and have a sporadic income to say the least. I've had periods of nearly 12 months go by when there's been no account funding and they've never once mentioned anything about charging me, however, there has never been any less than £500 in the account so maybe the deciding factor is more what your average balance is as opposed to how much you put through it each month.

Rob

Thanks surreysaver for raising that point, yes there is a clause entitled "3. Changes to these Terms and Conditions" and mentions that they can change terms and conditions by "A message on Our website".

However further on it reads "3.4.1 If the change is to Your disadvantage We shall tell You about it personally (at Your address or Your e-mail address procided to Us) at least 30 days before We make the change and at any time up to 60 days from the date of the notice You may; without notice, switch Your Account or close it without having to pay any extra charges or interest for doing this;"

I would say that a £5 fee is to my disadvantage, and that they have not given me 30 days notice and therefore the fees are invalid.

I just get the impression that banks charge fees in the name of quick profits on the assumption that the majority of customers will simply pay them and not question a bank's legal standing.

Received a letter from A&L saying that they would not refund any underfunding fees so I have responded by closing all my family's accounts there and cancelling my credit card. It amazes me that A&L will offer £100 to new account openers, plus a £25 recommend a friend incentive, and yet decide not to waive £15 of underfunding fees to keep 2 existing customers who had over £15k with them. The local High St branch did not want to allow my 80 year old father to close his account in person but made him phone the customer service line from their branch phone. What a crazy customer service business model that is! Cost cutting to the bone. No personal service even if you take the trouble to go in the branch with a passport. Anyway, an 80 year old man trying to do telephone-choose-an-option-whats-your-password type banking wasn't going to work, so eventually after much deliberation a staff member got his finger out to close the account by speaking to A&L customer services himself. At least if you go into Lloyds they don't make you phone some customer service line. This is a policy mess up from the top down by A&L. See if the Spanish takeover fixes anything.