Nice Customer Friendly Banks

Could I relate a little (true) story to show what the banks really think of their customers ?

My son, who has just started his own business, arranged for a loan to buy a pick-up truck. When the finance company 'phoned to verify his application, they asked what day he wanted the first payment to be made. He said the 9th March - this was agreed.

The finance company then tried to take the money on the 27th Feb, the Direct Debit bounced, which set off a financial bonanza for my son's bank and the finance company.

The bank charged him £34 for the failed DD, then £25 from the finance company. When the finance company was told (on the 4th March) that the payment wasn't due until the 9th, they suggested 'phoning back on the 9th and doing "a manual direct debit" over the 'phone. What they didn't tell him was that thay had tried again with the DD on the 3rd, this time successfully. This emptied his account so that two (fairly small) DDs "bounced" the next day. His kind, caring bank then slapped a further £68 on him for the failed DDs, they then paid the DDs and charged him £25 each for that (more than the value of the DDs), which took his account into the "unauthorised overdraft" kingdom. This then enabled them to charge him another £55.99.

The total in charges for this fiasco was £257.99, of which £207.99 was from his own bank.

I have always had a fairly jaundiced view of the way the banks operate but I have to admit, this one took my breath away !

We have sent the bill for this shambles to the finace company who started it all off. This has made me all the more determined to carry on with a separate claim against my son's bank for "illegal" bank charges from last year.

:mad: :mad: :mad:


  • amandathepanda
    amandathepanda Forumite Posts: 424 Forumite
    I'm sorry but it looks to me like you are blaming the bank for errors made by the finance company.The bank had an instruction to pay a direct debit to this company and did so, if the finance company had carried out their end of things correctly this wouldn't have happened, all charges accrued should be refunded by the finance company under the direct debit indemnity scheme. There should be a leaflet about this scheme in your bank.
  • dchurch24
    dchurch24 Forumite Posts: 1,216
    Part of the Furniture 1,000 Posts Combo Breaker
    It matters not which one you go after - the bank are acting unlawfully - the finance company just incompetently.

    Sad fact of British life.

    The issue isn't who's to blame - it's the fact that money has been taken through no fault of the OP's son.

    I wouldn't care who gave the money back - both are in the wrong.
  • moonrakerz
    moonrakerz Forumite Posts: 8,650
    Part of the Furniture 1,000 Posts Combo Breaker
    I'm sorry but it looks to me like you are blaming the bank

    I didn't say the bank was to blame, I made it clear that it was started by the finance co and I was pursuing them for the money.
    I WAS criticising the bank for the huge amount of "punitive charges" they heaped on my son's account in double quick time. If I was being really cynical I could ask why did they bounce two DDs (£68 in charges), then pay them from an unauthorised overdraft (another £50 + £55.99). They "authorised" the unauthorised overdraft and made a quick £105.99.

    dchurch24 - Agree with your comments - I went for the finance co, as they started it and it was easier to claim from one source than the four that were involved in this.
  • moonrakerz
    moonrakerz Forumite Posts: 8,650
    Part of the Furniture 1,000 Posts Combo Breaker
    I am a slightly happier person !

    Today my son received a letter from The Bank of Scotland saying that they had overlooked the original agreed date. They apologised and said the full amount of the charges would be refunded direct to his bank account.

    I am still not impressed by the way his own bank heaped charges upon him, but ....................

    Well done, Bank of Scotland. :T
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