Going above overdraft limit for few hours & charged - is this usual?

neels252

My partner and I both paid money into our Joint account with Alliance & Leicester on the same day that our mortgage payment left the account. Because of the order of these transactions (mortgage left first) we went over our overdraft limit during the day but were actually back in credit at the end of the day. We have been charged £25 as a result.

I will be raising this with them asking for a refund (they somehow managed to charge us BEFORE we went over the limit according to the order on the statement!) but I just wanted to warn other people about this so they don't get stung for unfair charges too.

I never came across this practice with my previous current account provider - is it quite normal?

:mad:

grumbler

In fact it was not a charge for going over your overdraft limit. They call it 'Paid item charge':

Paid items are items we pay when you may have incurred an unauthorised overdraft (including 'forced to pay' items such as guaranteed cheques and debit card transactions).

And T&C say that

27.6 ...You must allow at least one clear Working Day from the time We receive the cash before any payment (i.e. Direct Debit, standing orders, bill payment or cheques) is made against it.

Many other banks insist in having sufficient funds available one working day before the DD day.

nej

I had a similar situation where I logged into my online backing to see that my account had gone just overdrawn. I immediately transferred some money into the account from another account, and it took place immediately according to the website. I then called the bank and asked if it would be Ok and would I get charged? The guy said no, it's showing there so it'll be Ok.

A few weeks later I look at my statement and notice a charge on it so I call them and sure enough it was for this. I requested a refund as being charged £20 for going overdrawn by a few quid for a couple of hours is ludicrous. They declined, so I got through to a supervisor who said the same at first. I basically said I wasn't getting off the phone until they had refunded it. Eventually they caved in.

bluekp

I am having similar problems with A & L - regarding the transfer of funds between our LINKED savings account and current account. Basically any transfers to the savings account go immediately - but transfers back into the current account are taking up to 3 days.

They've so far charged me £59 for messing my account around and I'm not happy. I've just started the process suggested by the bankactiongroup to get my charges refunded.

Seriously considering a change of bank - preferably to someone with a good internet banking setup.

teecee90

Just complain about it. You haven't got anything to lose and everything to gai. Sometimes they give a full refundas a "gesture of goodwill", sometimes a part refund and sometime nothing. But it's certainly worth a try.