Overdraft Interest Charges? Any point?

Moonlapse

Have noticed I've been charged about 1.3% or so on my overdraft for quite a few months,... I was sure my overdraft was at one point interest free (i.e. student days, newly graduated days)? (not sure now)
Should I bother to send them a letter declaring they're unlawful, or have I missed the point here and they're actually, in fact, being quite completely reasonable with this interest charge?

[Deleted User]

depends what it says in your terms and conditions, might be worth a check. But it is a bit unfair that they didn't notify you to let you know in advance. (But again, this may all be detailed in the T & C you agreed to).

Moonlapse

I thought the whole issue with these charges was that they were unlawful despite being in the terms and conditions...?

(I've read on the main site words to these effect in BIG FONT - 'just because someone tells you they're going to punch you in the face doesn't make it legal for them to subsequently clobber you'...something like that..)

bengal-stripe

Moonlapse wrote: »

I thought the whole issue with these charges was that they were unlawful despite being in the terms and conditions...?

You cannot re-claim interest on an overdraft.

If someone lends you money you'll have to pay for it (unless you have a 'free overdraft' up to a certain amount, as new customer, student or graduate). Those free offers only last for a limited time. I have no idea if you are still entitled to student facilities, you'll have to find that out for yourself. You know, that preferential treatment for students gets withdrawn a year or two after graduation.

If you don't want to pay interest, just don't dip into the overdraft,

natweststaffmember

Moonlapse wrote: »

Have noticed I've been charged about 1.3% or so on my overdraft for quite a few months,... I was sure my overdraft was at one point interest free (i.e. student days, newly graduated days)? (not sure now)
Should I bother to send them a letter declaring they're unlawful, or have I missed the point here and they're actually, in fact, being quite completely reasonable with this interest charge?

You might have had an interest free overdraft but for example with natwest, when you graduate the interest free element decreases over a period of three years. That means that if you still use the overdraft and the interest free period of the account has ended that you pay interest on the amount. You cannot take the bank to court over this since it is neither unfair or is a charge for an action by the bank. It's for using the overdraft.

Moonlapse

Yup, thought so. Cheers guys.

Moonlapse

Would opening another current account with 0% overdraft be the answer?

natweststaffmember

Moonlapse wrote: »

Would opening another current account with 0% overdraft be the answer?

are you a graduate and when did you graduate since student/grad accounts are the only one with interest free overdrafts.

Moonlapse

I was reading this
http://www.moneysavingexpert.com/banking/compare-best-bank-accounts#overdrawn