Bank Mistake Making me overdrawn!

Boltz101 · 2 December 2008 at 8:56AM

Hi,

I am wondering if anyone can help.

My bank have managed to take a payment from my account 3 times (its a pretty sizeable amount too) and subsequently put me almost 10x my overdraft limit overdrawn.

Can anyone please tell me what kind of problems will arise from this, and also if I am entitled to any kind of compensation?

If you require any further information, please let me know.

Thanks for your help in advance.

opinions4u · 2 December 2008 at 9:19AM

What sort of payment is it (e.g. direct debit)?

Is it actually the bank's fault, or is it the collecting company at fault?

Have you asked them to resolve it?

Without knowing this sort of information, it's perhaps a bit optimistic to expect compensation.

Boltz101 · 2 December 2008 at 9:49AM

Basically I took a credit card at 0% on transfers to pay off a car loan, told my bank I wanted to pay the loan off, and instead of taking the payment from my account once, they have taken it 3 times and admitted liability on their part that is was their mistake.

This happened on Friday and they assured me that it would be resolved by yesterday.

Instead of resolving it, they have taken the money again and not credited it!

opinions4u · 2 December 2008 at 9:56AM

Ok. Looks like time to take them on.

1) If you have lost confidence in the person dealing with the complaint, raise it formally with the complaints department. Details should be easily found on the bank's web site.

2) State clearly that you expect this to be put right within 24 hours and that there will be no interest or fees applied to your account by the bank.

3) State that you expect any costs incurred with other companies not receiving payment to be met by the bank (if applicable).

4) Make a request for a specific amount of compensation, based on the time and effort you have had to put in to resolving things and promises not being kept. Ask for £50 and accept £15+.

5) Get them to put the above in writing!

Technically they have up to 8 weeks to resolve it. My view is that the longer it takes, and the more you have to pursue it, the more you should be reasonably entitled to.

If, at the end of 8 weeks, you are unhappy with either the resolution or the compensation, ask them for a 'letter of deadlock' and escalate your complaint to the Ombudsman (details on the bank's web site in the complaints section).