A&L Bank Extortionate Bank Charges

SkintFlint73

My Partner has an online Alliance & Leicester bank account which he opened probably about a year ago. He started to have his wage paid into my account after a few months instead of his so he was suddenly charged £5 for not having, I think it was £500 in his account. This took his account £3.50 overdrawn. His account doesn't have an overdraft. When this first happened he didn't realise it had because he had stopped using the account. Suddenly he started getting letters saying he owed £60, then it quickly went up to £175. He complained but the person on the phone said it was his fault for not checking his account. Fair enough, it probably was but he now owes them over £500. The people of the phone are not helpful at all and seem very abrupt. He has been getting letters saying they are dealing with his complaint and apologise for it taking so long. Then he gets other letters as if from another department asking for the money back and threatening him with legal action & asking him to put in a claim for financial hardship.

We aren't sure where to go from here. He initially complained because they amounts they are charging him seem very random. The wording in the terms and conditions says, 'they might add charges'. It says might and does not state how much the charges will be. It also feels like they are bullying him into putting in a financial hardship claim and ignoring the fact he wants to complain about the terms and conditions and charges being applied. They have now suspended his account but we don't know if this means charges will stop, or just that he can't use the account.

The £3.50 overdraft is now a £500+ one and we haven't spent a penny of it, its all charges. What can we do??

Urgent Advice needed - please help!! :mad:

esmerellda

Write a decent complaint letter - not ranty - just factual exactly what happened and what the issue is to the CEO david.bennett@alliance-leicester.co.uk (think he is still CEO anyway)

Also write to the dept threatening legal action etc and tell them to stop hassling you as the account is fully in dispute and to stop the charges and interest you wont be paying them as they are unfair under the UTCCR.

natweststaffmember

esmerellda wrote: »

Write a decent complaint letter - not ranty - just factual exactly what happened and what the issue is to the CEO david.bennett@alliance-leicester.co.uk (think he is still CEO anyway)

Also write to the dept threatening legal action etc and tell them to stop hassling you as the account is fully in dispute and to stop the charges and interest you wont be paying them as they are unfair under the UTCCR.

The big cheese is now Antonio Osorio who took over when Santander took on the business

hoyles10

Earlier this year I changed my banking from Natwest to A&L and when I opened my Alliance and Leicester account the terms and conditions clearly said that I must pay a minimum of £500 per month into the account or I will receive a £5 charge... It also states that if you go overdrawn then it's charged at £5 per day.

I must admit I have been briefly overdrawn with A&L but haven't received any charges as I quickly rectified the situation, but I always knew that if I didn't then I would be charged £5 per day.

I would personally try and appeal to their better nature to see if something can be sorted out but their terms and conditions are clear.

esmerellda

£500 for £3.50 overdrawn is ridiculous in any ones book regardless of any terms and conditions.

loveprada

SkintFlint - the exact same thing happened to me too. I had stopped using the account with nothing left in it and should have closed it down. Then I was made redundant so the stress of that meant I forgot to close this wretched A&L account and they took a £5 fee out of it and the rest is history. I have written so many letters and given ultimatums. I spoke to someone at the FOS who said I should pay the amount to prevent it rising (£165 at the moment but rising) and then reclaim it but that sounds pathetic. Half of me wants to do this but I think why should I pay them this money and then chase it - it's outrageous. It is clear to me they are hiding behind this test case and happy to loll along and not deal with issues and let our so called debts tott up. Very frustrating and I dont know what to do. I received a statement saying another £100 will be added on 27th if I dont pay this. Where will it all end!

MarkyMarkD

As hoyles10 says, the condition requiring £500 a month minimum funding is completely clear when you open the account.

Why on earth do people not simply read the conditions of what they are signing up to?

slummymummyof3

hoyles10 wrote: »

It also states that if you go overdrawn then it's charged at £5 per day.{QUOTE}

I thought it was 50p per day to a maximum of £5 in a month for an agreed overdraft or am I talking sh*te?

Nathan_Spleen

MarkyMarkD wrote: »

As hoyles10 says, the condition requiring £500 a month minimum funding is completely clear when you open the account.

Why on earth do people not simply read the conditions of what they are signing up to?

You're missing the point as the contract term is probably unlawful regardless of the account holder's signature on the contract. Neither does the term sit too comfortably with the bank's 'free if in credit' model. A&L are also breaching OFT rules by attempting to pursue a 'debt' on an account in dispute.

**Upsy_Daisy**

MarkyMarkD wrote: »

As hoyles10 says, the condition requiring £500 a month minimum funding is completely clear when you open the account.

Why on earth do people not simply read the conditions of what they are signing up to?

Why on earth are people so bl**dy judgemental :mad::mad:

MarkyMarkD

There is nothing unlawful about an account having a £5 a month under-funding charge.

And that is where this all began.

My point is, why do people sign up to a current account - maybe because of a 0% overdraft rate, maybe because of a 6% in credit rate - but ignore the equally prominent £500 a month minimum funding condition?