Unexpected NatWest Maintenance Charge

meerkat2007

I've just been online to check the pre-advice of charges and interest on my NatWest current account (charging period 22 July to 23 August, chrages payable on 11 September), and found that in addition to the expected interest and monthly charge for an Advantage Gold account, they are also planning to levy a £28 Maintenance Charge.

Now, I have had debt problems in the past, and as a consequence, I keep a tight control over my finances now - I have a spreadsheet that tells me my current balance, what's due to come out until next pay day and what's available, and that way, I have avoided unexpected charges ... until now.

At the start of the charging period, my overdraft facility was £3,600 and was a couple of hundred off being fully used. However, when I was paid on 14 August, I had fully used the overdraft, but I was in a position to reduce the facility by £200, which I did. I can't remember when, exactly, but it would have been no earlier than pay day.

I am writing to the bank to complain, but it looks like they may have charged me for starting 14 August with a £3,600 overdraft on a £3,400 facility that was only applied for later that day, after my salary went in. I'll eat the charge if I have to, but at the very least I think it's morally (and I know banks have no morals!) questionable to apply a retrospective overdraft limit, if that's what they've done.

The lesson I've learned from this is to be very careful when reducing your overdraft limit, and I'm posting this as a warning to others who may not realise that this is a possibility. In future, I don't think I'll be quite so eager to reduce my overdraft further - it might be a good idea to wait until well after pay day!

Kavanne

Yes you keep a spreadsheet but have you actually checked your statement to see if you went over at all? Also, are you aware of the exact date your overdraft limit was amended?

agsnu

AFAIK NatWest overdraft limits are amended overnight so what you describe isn't possible. Are you sure you didn't ask them in advance to reduce the overdraft facility on the day based on the expectation that your salary would be paid on the same day and cover the reduction?

meerkat2007

agsnu wrote: »

AFAIK NatWest overdraft limits are amended overnight so what you describe isn't possible. Are you sure you didn't ask them in advance to reduce the overdraft facility on the day based on the expectation that your salary would be paid on the same day and cover the reduction?

I am absolutely sure I didn't ask them prior to my salary going in. I waited until I saw the money in my account.

meerkat2007

Kavanne wrote: »

Yes you keep a spreadsheet but have you actually checked your statement to see if you went over at all? Also, are you aware of the exact date your overdraft limit was amended?

I know the limit was amended after my salary went in - I just wouldn't arrange a reduction prior to seeing the money in my account, just in case anything went wrong.

I've had a look, but I can't see anything. There probably is some explanation, and when I get it, if it's valid, well, I'll just have to bear it in mind for the future.

Mind you, given what the overdraft is costing me each month in interest, I think I'll look into getting a loan to pay it off and get it reduced to just the interest-free £100 overdraft! Then I won't have this problem again.

Thanks for your comments - probably given me the kick in the pants I need to keep a better eye on things!