alliance+leicester charges 100% interest a day

larry_lurex

Before Christmas 2008 Alliance+Leicester sent me a letter notifying me that my current account overdraft facility of £900 would be withdrawn and instructed me to repay the balance within the next few days. As you can imagine it was a bit of a shock that I had to find hundreds of pounds in such a short space of time. However, I paid in a cheque shortly after to settle the balance and deposited £5 for the overdraft charge.

I hoped never to hear from Alliance+Leicester again and that they would close the account. However, last week I received a letter urging me to settle the overdrawn balance of £90. I could not understand how this came about because I never had any communication since I settled the overdraft weeks earlier. What I discovered what truly astounding: Alliance+Leicester had clearly decided they needed money urgently since they lost so much gambling over the year and I was the one to provide it, Without warning Alliance+Leicester had taken out another £5 making the account overdrawn in spite of the withdrawal of the facility. This resulted in them charging me £5 for every day the account was overdrawn. This amounts to an amazing 100% interest a day on the original charge even doorstep loan sharks would not stoop to. Is this not called usury? I have now received a second letter informing me of £25 charges for unauthorised overdraft on top of the daily 100% charge. Clearly all this could have easily been avoided and would have been avoided if anyone else but Alliance+Leicester had tried to withdraw funds because they would have been refused.

NBE

Unfortunately this isn't interest but the £5 per day charge for exceeding the overdraft allowance as stated in the terms and conditions of the account here, you could try phoning them and explaining the situation especially if as you say they double charged another £5 charge after you had already cleared the balance of the account. I hope you manage to get this sorted out. These are the new waive of charges that banks are setting up which are deemed to be "fairer" than the old method of charging for exceeding overdraft limits etc.

willo65

sound slike the charge is applied 1 month after it was accrued, ie you are o/d in december so charged at end of January - I would suggest when doing this asking the bank if there is any future charges due on the account and then close the account if you wanted to.

larry_lurex

I have just had a statement saying I am now £190 overdrawn. I appreciate NBE saying it is a charge and points out that there are terms and conditions but that is not really the point.

The point is that Alliance+Leicester deliberately took out £5 to get me into the red without informing me and a few days later £5 are £190 and counting.

I sent them an email a week ago btw and they have not responded. Without a response I cannot complain. When I can complain the balance will be £300.

I know what is happening, what I wanted to know if something similar has happened to anyone on here and what they did about it.

Thanks.

krisskross

Flippin 'eck, makes me glad to be with Barclays:rotfl:

Mrs_Ryan

What a surprise... A&L bodging up again....

A&L charges are extortionate and no, they dont bother informing you, they just take money out of your account when they feel like it, and then put false late payment marks on your credit file whenever they feel like it as well. Keep on at them until they sort it out - they seem to take forever to sort complaints out as I found.

Gorgeous_George

I would make an apponitment to see a manager. Explain the situatrion and ask for a reasonable resolution. In the absence of a resolution, pay up, marking the cheque 'under protest' and sue.

GG

larry_lurex

Thanks, GG, I might need more info on the procedure. Got a letter today (finally!) acknowledging my correspondence so I shall see what they do next.

larry_lurex

I got a badly written standard letter saying if I pay more than £200 Alliance+Leicester will be graceful, have some champagne on me and let me get on with my life. (Remember, I had to pay off more than £800 within a few days before Christmas and did, owing nothing.)

Frankly, in 42 years I have never allowed anyone to talk down to me like that. Alliance+Leicester may have to adapt their mindset. I shall not mention that they had to be rescued by Don Quixote[sp?] but still act as if they were the rulers of the world and are allowed to do so by the present government.

So, it looks like a straightforward case of unjustified charges but believe you me Alliance+Leicester have started something when picking on me.

Can anyone please point me to the what to do once I-have-received-an-extortion-letter link? Many thanks.

red_flump

Have you been charged the £5 underfunding fee? Did you stop putting money through the account?

red

larry_lurex

red_flump wrote: »

Have you been charged the £5 underfunding fee? Did you stop putting money through the account?

red

Not sure I understand the questions. As stated in the initial post I settled the account at short notice before Christmas which was not easy, left the £5 charge I expected and thought that was the end of that.