Bank charges incurred unfairly

craiglivvy

Hi guys my first post, was directed here on a recommendation from a friend who suggested you may be able to help with my dilemma. I have had conflicting responses to whoever I approach with the following problem with some saying the bank should drop the charges and others saying RCI are to blame:

A few months ago a direct debit for RCI didn't leave my account, I contacted the bank to find it hadn't been asked for, the direct debit is supposed to be taken on the 29th of each month. On the seventh of the following month I phoned the company and paid the amount by debit card as they hadn't taken it (they charged me for late payment but this has since been refunded. This process repeated itself for several months despite me repeatedly gaining assurance the direct debit was properly set up.

On the 29th June the same happened once more. I phoned on the 30th and paid by debit card (earlier than normal to avoid charges being made and me having to argue them away again). On the account statement I recieved from RCI they claim to have then asked for the direct debit on the 1st July (the bank, RBS, insists they did not) and charged me ten pounds for it being rejected (since refunded). On the 8th July whilst I was abroad they then took the amount from my account randomly without my consent or knowledge and despite the fact the money wasn't due. This resulted in two direct debits bouncing and my account going overdrawn that would have went through fine with a good amount of funds to spare if the amount hadn't been taken.

Having realised their own error before I did RCI then returned the funds on 23rd July to my account (minus yet another £10 charge for late payment???? since refunded). By this time however the damage was done and RBS had hit my account with a hefty £86 fine (£38 per direct debit and £10 for going overdrawn.

My initial thought was that this could be reclaimed from the direct debit guarentee but RBS say that this doesn't cover bank charges. Perhaps RBS would understand the situation and refund the charges as a goodwill gesture (I am an optimist) but no such luck. Surely then RCI should foot the cost of their own error, but no they claim, and I quote "it's your own fault for not having enough money" (their 'customer service' team are rude, argue with you, and are very derogatory).

So who should I be chasing for the refund of these funds or am I indeed up a certain proverbial discoloured creek without a suitable floatation device and devout of a paddle?

Any advice would be much appreciated

Cheers

natweststaffmember

craiglivvy wrote: »

Hi guys my first post, was directed here on a recommendation from a friend who suggested you may be able to help with my dilemma. I have had conflicting responses to whoever I approach with the following problem with some saying the bank should drop the charges and others saying RCI are to blame:
Technically you could approach both but from your post below re RCI I would approach them in writing with regards to the issue of the Direct Debit.
A few months ago a direct debit for RCI didn't leave my account, I contacted the bank to find it hadn't been asked for, the direct debit is supposed to be taken on the 29th of each month. On the seventh of the following month I phoned the company and paid the amount by debit card as they hadn't taken it (they charged me for late payment but this has since been refunded. This process repeated itself for several months despite me repeatedly gaining assurance the direct debit was properly set up.

On the 29th June the same happened once more. I phoned on the 30th and paid by debit card (earlier than normal to avoid charges being made and me having to argue them away again). On the account statement I recieved from RCI they claim to have then asked for the direct debit on the 1st July (the bank, RBS, insists they did not) and charged me ten pounds for it being rejected (since refunded). On the 8th July whilst I was abroad they then took the amount from my account randomly without my consent or knowledge and despite the fact the money wasn't due. This resulted in two direct debits bouncing and my account going overdrawn that would have went through fine with a good amount of funds to spare if the amount hadn't been taken.
You need to get RBS Bank to confirm the date the the Direct Debit was set up. Most companies claim direct debits through the BACs system which means the date they claim to have asked for the payment you would have to add a further 2 working days as to when the payment would have been asked from the bank.
It's a pity you didn;t ring the bank and reclaimed the DD going out under the Direct Debit Guarantee Scheme

Having realised their own error before I did RCI then returned the funds on 23rd July to my account (minus yet another £10 charge for late payment???? since refunded). By this time however the damage was done and RBS had hit my account with a hefty £86 fine (£38 per direct debit and £10 for going overdrawn.
Do you have a R21 account with RBS?

My initial thought was that this could be reclaimed from the direct debit guarentee but RBS say that this doesn't cover bank charges.
100% yes they are right and it is the one thing wrong with the DD guarantee scheme.
Perhaps RBS would understand the situation and refund the charges as a goodwill gesture (I am an optimist) but no such luck. Surely then RCI should foot the cost of their own error, but no they claim, and I quote "it's your own fault for not having enough money" (their 'customer service' team are rude, argue with you, and are very derogatory).

So who should I be chasing for the refund of these funds or am I indeed up a certain proverbial discoloured creek without a suitable floatation device and devout of a paddle?

Any advice would be much appreciated

Cheers

You can do both. I would put it in writing with regards to the issues around setting up a Direct Debit and what you did to avoid charges. The argument you have to take with RCI is that not only did they take the Direct Debit but they returned it to your account, therefore admitting an error on your part. You need to argue that the consequence of their actions left your account deficient for payments going out and therefore you incurred charges directly as a result of their mistake. Ask them to reimburse you and include documentary evidence to prove that.

On the other side, there is nothing to stop you from having your cake and eating it. You can also reclaim the bank charges as well and when the OFT test case issues are resolved then you get the money back anyway

craiglivvy

Thanks for your advice, I am currently compiling the documentary evidence to support a written complaint to RCI.

With regards to my RBS account it is not an R21, I am on a graduate/student royalties account.

It is a pity I didn't phone in time to claim under the direct debit guarantee, but being abroad I had no idea the money had been taken, I had avoided taking my card aware of RBS being quite expensive if used abroad and had taken back up money out to take in travellers cheques, leaving enough to cover my DDs that were due later in the month...or so I thought

natweststaffmember

craiglivvy wrote: »

Thanks for your advice, I am currently compiling the documentary evidence to support a written complaint to RCI.

With regards to my RBS account it is not an R21, I am on a graduate/student royalties account.

It is a pity I didn't phone in time to claim under the direct debit guarantee, but being abroad I had no idea the money had been taken, I had avoided taking my card aware of RBS being quite expensive if used abroad and had taken back up money out to take in travellers cheques, leaving enough to cover my DDs that were due later in the month...or so I thought

Apologies, I knew it was something because of that £10.00 over limit charge. It's still reclaimable