Help!!!

mrainford

I set up an account with Alliance & Leicester around 6months ago, aswell as keeping my HSBC account. I thought this was a good way of budgeting what I spend.

I hadnt used my alliance & Leicester account for around 6weeks, but when I logged in today, I had an £80.00 charge.

My balance 6wks ago was 0. I have since been charged £5.00 for not putting funds into the account (which they didnt notify me of), and a further £75.00 for being overdrawn!! I was £5.00 overdrawn because of the £5.00 charge they put on my account!!

I rang them today and they said there is nothing they can do and I must pay the charge. I told them I wanted to close the account and they said thats fine but only once I have paid the charge.

Where do I stand??

thatsean

I've got a feeling that a search of the Ts and Cs will reveal this. When you say you weren't told, how did you open the account?, if it was online you'll have ticked a box to say that you'd read them, or that you would once you'd got them and that you understood the cancellation processes. In branch and phone transactions should have a similar process.

Getting charges because of underfunding fees seems pretty harsh, it may well be worth your while getting a formal letter off to them, or failing that, if you have been using the account prior to this 6 week holiday - maybe go into branch and see if you can sweet talk someone to waiving the fees, and then just pay off the underfunding charge?

YorkshireBoy

mrainford wrote: »

I have since been charged £5.00 for not putting funds into the account (which they didnt notify me of)

Yes they did. It's clearly detailed in your T&Cs.

Where do I stand??

Pay the fees, close the account, and resolve to read the T&Cs of financial products you open in future.

mrainford

thatsean wrote: »

I've got a feeling that a search of the Ts and Cs will reveal this. When you say you weren't told, how did you open the account?, if it was online you'll have ticked a box to say that you'd read them, or that you would once you'd got them and that you understood the cancellation processes. In branch and phone transactions should have a similar process.

Getting charges because of underfunding fees seems pretty harsh, it may well be worth your while getting a formal letter off to them, or failing that, if you have been using the account prior to this 6 week holiday - maybe go into branch and see if you can sweet talk someone to waiving the fees, and then just pay off the underfunding charge?

I opened the account online. The £5.00 underfunding charge I dont mind paying (I dont agree with but atleast its only £5.00), it's the fact that because of that, I have since received a further £75.00 charge which I just cant afford. I didnt think banks could charge you if their charge sent you overdrawn??

mrainford

Quote:

I have since been charged £5.00 for not putting funds into the account (which they didnt notify me of)

Yes they did. It's clearly detailed in your T&Cs.



I meant, they didnt notify I had been charged for this - I would have put the money into the account

YorkshireBoy

mrainford wrote: »

I have since received a further £75.00 charge which I just cant afford.

You need to find some money from somewhere (and quick!!!) because your debt will be increasing by £100 per month if you don't due to the £5 per day (max 20 days per month) exceeding overdraft limit fees being applied...

http://www.alliance-leicester.co.uk/current-accounts/interest-rates-and-fees/premier-direct-current-account.aspx#2

YorkshireBoy

mrainford wrote: »

I meant, they didnt notify I had been charged for this - I would have put the money into the account

They tell you in your secure area about "fees to be applied", and (in the case of Premier Direct) send you an e-mail requesting you check your account/statement online.

mrainford

YorkshireBoy wrote: »

They tell you in your secure area about "fees to be applied", and (in the case of Premier Direct) send you an e-mail requesting you check your account/statement online.

I assumed a letter would be sent to me - as with not using the account - I wasnt expecting a charge.

Also it states I will be charged the £5.00 08/10/09 - yet thats whats taken me overdrawn now? Would the £75.00 charge for being overdrawn not apply if I didnt have the funds in on 08/10/09 to cover the £5.00?

YorkshireBoy

Not sure I fully understand your question(s), but...

You're charged £5 per month (billed in arrears and pre-notified?) for each month you don't fund the account with at least £500.

Whilstever you have an overdrawn balance (above any agreed overdraft facility, and I'm assuming you don't have one?) you're charged £5 per day (again, billed in arrears and pre-notified)...but for a maximum of 20 days in any charging/statement period.

mrainford

YorkshireBoy wrote: »

Not sure I fully understand your question(s), but...

You're charged £5 per month (billed in arrears and pre-notified?) for each month you don't fund the account with at least £500.

Whilstever you have an overdrawn balance (above any agreed overdraft facility, and I'm assuming you don't have one?) you're charged £5 per day (again, billed in arrears and pre-notified)...but for a maximum of 20 days in any charging/statement period.

They state the £5.00 charge will be debited 08/10/09. But yet show the charge having gone out putting my balance as -£5.00. But if the charge isnt being debited till 08/10/09, surely they cant charge me for being overdrawn??

noh

According to the A+L website the £5 underfunding charge is debited immediately.
http://www.alliance-leicester.co.uk/current-accounts/interest-rates-and-fees/premier-current-account.aspx#2

The £5 a day unauthorised overdraft fee is billed in arrears and pre notified.

I suspect you had an underfunding fee of £5, relating to an earlier month , debited to your account 15 days before the date of your statement.
When was the last month you paid in a total of £500?

Is it a Premier or Premier Direct Account?