Should Banks still be Charging #35.00

archer5

Should Banks still be applying charges at 35.00 in the light of all their refunds.

If a direct debit payment due out today places you over the overdraft limit but on the same day (am) you cover the amount should you still be charged an over limit fee.

militantconsumer

No they shouldn't, but they are allowed to still charge pending the outcome of the legal test case. If they lose their appeal, everyone can still claim these charges back.

pennyforem

Hello all, newbie here. I am in a similar situation to the one above. Clydesdale bank are back to charging their old charges. In my case 2 instances = £60.00(£35.00+£25.00). Letter to the bank manager requesting that these be reduced to £12.00 each resulted in a rather terse reply stating T&c's of my account...... Do you thing it would be reasonable to ask them to put these charges in abeyance until the High court decision is known. I had also thought about putting £24.00 into my account and blanking the bank until the ruling is known(not my main bank account). Also would the Financial ombudsman entertain a complaint regarding this matter.Your thoughts would be appreciated.

esmerellda

The £12 you mention is to do with the recommendation by the OFT on CREDIT CARD default charges. The banks are a different kettle of fish, and yes they can continue to charge their £35 odd overdraft fees until the lift of the waiver and the outcome of the test case.

Unless you are in severe hardship the bank nor the FOS will process your complaint until the test case is done and dusted.

pennyforem

Thanks esmerellda. Thought as much. I just hate paying the full charges to these suited thiefs. I'll settle the charges and claim back if/when the high court decision goes in our favour...

esmerellda

I would still write in now so you are in the pile ready for when it is decided

pennyforem

archer5 wrote: »

Should Banks still be applying charges at 35.00 in the light of all their refunds.

If a direct debit payment due out today places you over the overdraft limit but on the same day (am) you cover the amount should you still be charged an over limit fee.

Just picked up on your point archer5. As far as I am aware in the case you outline above it depends on the order in which debits and credits are applied. Of course most banks process debits first to harvest the maximum number of charges. If the debits put you over, you get charged!!! If your credits (Ie salary etc) are processed next depending on how charges are taken, either as they occur or at your statement date. You could be in financial trouble depending on your circumstances. :eek: Therefore I don't think you can rescue the situation when the banks open by depositing enough funds to cover your defecit. You would have to have sufficient funds lodged the previous day to balance your account. There is only one bank that I know checks for funds in the afternoon, and if you have managed to nip into a branch and make sufficient deposit. the charge on your account is reversed. Anybody, correct me if I'm wrong.

dunstonh

Many of the banks have moved to a different charging structure which they believe to be compliant with requirements. Every indication is that the new structures are. Although many people are actually worse off with these new charges.

This issue has never been the fact there is charges. Its been when and how they have been charged. A bit of repackaging and renaming and they can get round it.

archer5

pennyforem wrote: »

Thanks esmerellda. Thought as much. I just hate paying the full charges to these suited thiefs. I'll settle the charges and claim back if/when the high court decision goes in our favour...

Thanks Pennyforem. I will do the same. Pay the 'charges and then claim the excess back. They've already accepted that their charges are too high for their 'actions', that is why they refunded so many people to begin with. I so want to get away from HBOS. That's ONE definate resolution for this year.

archer5

pennyforem wrote: »

Just picked up on your point archer5. As far as I am aware in the case you outline above it depends on the order in which debits and credits are applied. Of course most banks process debits first to harvest the maximum number of charges. If the debits put you over, you get charged!!! If your credits (Ie salary etc) are processed next depending on how charges are taken, either as they occur or at your statement date. You could be in financial trouble depending on your circumstances. :eek: Therefore I don't think you can rescue the situation when the banks open by depositing enough funds to cover your defecit. You would have to have sufficient funds lodged the previous day to balance your account. There is only one bank that I know checks for funds in the afternoon, and if you have managed to nip into a branch and make sufficient deposit. the charge on your account is reversed. Anybody, correct me if I'm wrong.

This makes sense to me. I missed the pre-day 'deposit' due to being on duty at work.

archer5

dunstonh wrote: »

Many of the banks have moved to a different charging structure which they believe to be compliant with requirements. Every indication is that the new structures are. Although many people are actually worse off with these new charges.

This issue has never been the fact there is charges. Its been when and how they have been charged. A bit of repackaging and renaming and they can get round it.

I agree. '....the new structures are...repackaging and renaming.
and we are...' actually worse off with these new charges.' I believe they are attempting to recoup the amounts that they 'have' already paid out in the reclaim of bank charges. Same dish served up cold.