Alliance and Leicester current account shambles

fric

I recently switched current account opened an A & L account to get a 0% overdraft for my wedding. In effect that has saved me taking out a loan.

A & L matched my overdraft with my previous bank at £8000.

On three separate occasions (2 phone calls and a visit to the branch) I was told that the 0% rate applied to the full £8000 not just the first £2500 as mentionned in the advert.

I am currently being charged interest on being overdrawn.

I specifically opened this account on the understanding that there would be a £8000 overdraft at 0%.

I have drafted a complaints letter. If I get no redress, how far can I take this? The ombudsman? Will this damage my credit rating?

Any advice gratefully appreciated as I am a complete novice at being overdrawn.

jyonda

On the website there's a link to the T&C's and one of the first things it says it that the 0% overdraft only applies to the first 2500. The overdraft rate after that is 5.9% which is still a good rate for loan plus you've the flexibility of paying off as little or as much as you like, whenever you like.
Apply for a credit card with a 0% balance transfer offer and get as much of the overdraft balance onto it which should sort your immediate situation. Congratulations on your wedding!

grumbler

fric wrote:

...On three separate occasions (2 phone calls and a visit to the branch) I was told that the 0% rate applied to the full £8000 not just the first £2500 as mentionned in the advert.

For me asking branch staff or phoning helpline is alway the last resort. In this case I always make a note of the time and the person I speak to. Posts #19-#25 in the 'Exchange Rate for Euro's ' thread are my favourite example of banks' staff incompetence. Instead of wasting time on phone calls and visits to branch it is better to do your own research.
Premier Direct Current Account:

0% overdraft for 12 months from account opening, 5.9% EAR typical (variable) thereafter 2

Important information (bottom of the page):

2.Overdrafts are subject to status. Overdrafts are repayable on demand. Overdrafts up to £2,500 qualify for 0% interest for the first 12 months from account opening only....

I have drafted a complaints letter. If I get no redress, how far can I take this? The ombudsman? Will this damage my credit rating?

I'd complain too. This (complaining) cannot damage your credit rating. I don't think that it is worth complaining to some bodies outside A&L unless you can prove that you were misadvised.

Any advice gratefully appreciated as I am a complete novice at being overdrawn.

If your overdraft rate is 5.9% it is quite low. You can try to get a credit card with 0% introductory offer or lower Life Of Balance interest rate, although you need to make so called Super Balance Transfer to transfer overdraft to a credit card.
Consider EGG CARD (up to 9 months 0% on BTs with 2% max £50 handling fee) or combination of some other 0% (or low LOB) card and EGG MONEY card. Read:
What is a Super Balance Transfer?
The Best Balance Transfers: cut the cost of existing credit card debts
REVENGE! Make Free Cash from Credit Cards
http://www.stoozing.com/full.htm
http://www.stoozing.com/0fees.htm

OMAR

do u really think that you were gona get £8k for 0% for 12 months....jeez, sum people

dixie_dean_2

Jeez. Why does a message have to be at least 10 characters? i only wanted to say a sarcastic Jeez and now look at me!

TonyB

OMAR wrote:

do u really think that you were gona get £8k for 0% for 12 months....jeez, sum people

Not wishing to be nitpicky, but if you read Martins article on "Best current Account" in the overdraft section later on in the article, you will find that even he thought so!!!!!

Quote:- The 0% rate for new customers lasts for 12 months after the account is opened. Yet the best thing about this account is that once the 0% period has ended, its still the cheapest overdraft on the market at 5.9%.

Even better, they will now match whatever overdraft you have with your current bank, still at 0% for the first year and 5.9% thereafter. As long as you produce proof of your current limit, they will automatically match up to £5,000, and you can even apply for larger limits than that, although that will be subject to credit scoring

TonyB

Whilst I'm here I might as well point out the useless support they provide.
I recommended a friend who opened an account in October & has faithfully invested the £500 each month, BUT WHERE ARE THE BONUS £50's.

I have tried phoning on their 0845 numbers with the interminable menus taking at least 2 mins + to be told that "all agents busy , you are in a que with an aprox wait of:::: wait for it
Go 1:- 5 mins
Go 2:- 10 mins
Go 3:- 7 mins just to chase up their promised inducement.

Last year I used their "Callers from abroad" number in Leeds ( 0113 2541566) where for a while I got reasonable instant personal service but at some stage the question was asked "Where are you phoning from" & had the call abruptly terminated. Approach to management received a very terse ticking off!!!
All this at the time when the interest they pay on my what was Premiere Plus Account has dropped to the 3.5% level!!!!

I wonder if I can close this a/c & open another at the new 5% offer? Anyone got any ideas? The same I think applies to their Online Saver where new accounts receive enhanced interest.

Not a happy bunny!!!:mad: :mad: :mad:

OMAR

3.5% is still in the top 5 on high street
Waiting times.....its just like queueing in real life...do u expect silver service all the time...ur not the centre of the universe....there are millions of customers and if their is a bargain to have in a high street store...u wait ur turn on demand to be seen now
Phoning abroad numbers...what do u expect...that number is for real people in real emergencies...not people who want to save 2p on a sodding call
overdraft...even martin can get it wrong!
What is the world coming too