Alliance & Leicester under funding and overdrawn charges

Panbun

Hi everyone, just wondering if I can get some advice on this issue. Apologies if this is posted in the wrong forum.

I had an Alliance & Leicester premier 21 account which I rarely used and when I turned 22 last November I stopped using it. My account had a small amount of money in (can't remember how much) so I left it with the intention of possibly using it again at a later date.

I then received a letter from A&L in May, with "Our records show you have not used your account for some time..." <snip>..."if you do not respond to this letter, your account will go back to dormant status. This means you will be unable to operate your account and if your account is interest bearing, no further interest will be earned." and there was a slip at the bottom which I cut off and sent back indicating I would like my account to be closed and remaining balance transferred to another account.

Recently I received another letter from them, saying that my account had exceeded its overdraft limit without an overdraft limit in place. Phoned them today, and was told that the account I currently have (premier direct current account which I never agreed to) requires a minimum monthly deposit of £500, or there would be a £5/month under funding fee applied, which has taken me overdrawn since I never had an overdraft limit in the first place. They said they never received the form I sent back, and unfortunately I didn't send it recorded - stuck it in a stamped envelope and in the post it went.

I've been told over the phone that I owe them around £214 in under funding fees and overdrawn charges, and the latter is up to £5 for each day my account remains overdrawn.

They have now escalated this to some other department so I can no longer deal with it over the phone. I was told I'll receive a letter within 5 working days, but these daily charges are still being applied as I can't have my account frozen or closed until my balance is zero.

Would anyone be able to offer any advice? Are these charges reclaimable? Thank you in advance.

natweststaffmember

Panbun wrote: »

Hi everyone, just wondering if I can get some advice on this issue. Apologies if this is posted in the wrong forum.

I had an Alliance & Leicester premier 21 account which I rarely used and when I turned 22 last November I stopped using it. My account had a small amount of money in (can't remember how much) so I left it with the intention of possibly using it again at a later date.

I then received a letter from A&L in May, with "Our records show you have not used your account for some time..." <snip>..."if you do not respond to this letter, your account will go back to dormant status. This means you will be unable to operate your account and if your account is interest bearing, no further interest will be earned." and there was a slip at the bottom which I cut off and sent back indicating I would like my account to be closed and remaining balance transferred to another account.

Recently I received another letter from them, saying that my account had exceeded its overdraft limit without an overdraft limit in place. Phoned them today, and was told that the account I currently have (premier direct current account which I never agreed to) requires a minimum monthly deposit of £500, or there would be a £5/month under funding fee applied, which has taken me overdrawn since I never had an overdraft limit in the first place. They said they never received the form I sent back, and unfortunately I didn't send it recorded - stuck it in a stamped envelope and in the post it went.

I've been told over the phone that I owe them around £214 in under funding fees and overdrawn charges, and the latter is up to £5 for each day my account remains overdrawn.

They have now escalated this to some other department so I can no longer deal with it over the phone. I was told I'll receive a letter within 5 working days, but these daily charges are still being applied as I can't have my account frozen or closed until my balance is zero.

Would anyone be able to offer any advice? Are these charges reclaimable? Thank you in advance.

Then you need to photocopy the letter you received and write to them and tell them that you completed the tear off slip asking that the account be closed and as you received no further correspondence, you assumed it had been done. Ask them to close the account and to refund any charges and interest taken due to a bank error on their part otherwise you will take it to the FOS

Panbun

Thanks for your reply.

I did tell them over the phone that I completed the slip & sent it off, but the CS advisor on the other end said it wasn't received and I should have sent it recorded, and phoned up afterwards to check.

Which of the charges will I be able to get refunded? The overdraft & interest charges, or the under funding fees (which caused me to go overdrawn in the first place) as well?

natweststaffmember

Panbun wrote: »

Thanks for your reply.

I did tell them over the phone that I completed the slip & sent it off, but the CS advisor on the other end said it wasn't received and I should have sent it recorded, and phoned up afterwards to check.

Which of the charges will I be able to get refunded? The overdraft & interest charges, or the under funding fees (which caused me to go overdrawn in the first place) as well?

The LOT.
DId you actually receive any correspondence about them not receiving the post?
Was it just internet based account?

Panbun

I only received the one letter telling me my account had gone overdrawn without the overdraft limit.

My account was opened online, then A&L transferred it to a premier current account in December after my birthday. I thought they transferred my account to a regular savings one so didn't think much of it, else I'd have closed it ages ago.

natweststaffmember

Panbun wrote: »

I only received the one letter telling me my account had gone overdrawn without the overdraft limit.

My account was opened online, then A&L transferred it to a premier current account in December after my birthday. I thought they transferred my account to a regular savings one so didn't think much of it, else I'd have closed it ages ago.

Was that the final letter which said you owed loads of money(so to speak)?

Panbun

The letter doesn't mention any amounts I need to pay, just that I've gone overdrawn and need to repay it or bring my balance within the overdraft limit. It was only when I phoned up I was told my account balance is currently around -£74 but to clear it I need to pay them £214 because there's another payment going out around the start of August due to under funding & overdraft charges.

Panbun

Just phoned A&L again to comfirm the exact amounts I owe them. Got through to a much nicer advisor this time. My account currently stands at -£74.91 which is apparently all under funding fees, with another £100 due on 4th August (£5/day overdraft charge capped at £100/month). So a total of £174.91.

No idea how the first person I spoke to got £214 :rolleyes:

darrenrez

hi yes i got the same problem they charge(£5/day overdraft charge capped at £100/month)and then if you dont pay it while you are complaining that they are unreasonable or in financial hardship they will charge you the same amount again next month,its a neverending circle that they have a win-win situation.my complaint has gone as for as the fos who are currently looking into my claim.one thing i will add is that ALWAYS send any letters to the A&L by recorded signed-for post as they said they lost my claim form by letter but i then phoned them and told them i had proof of sending and proof of signing for the letter they then put me on hold for 5mins and then came back and said they had now found my letter.(amazing that aint it !!! ).will update you on my fos claim.