Nationwide Bank Charges

ilesmark

Hi all

I can't believe I find myself posting on another issue so soon after the defective sink one, but I have just had a contretemps with Nationwide, which has just written to me to reject my complaint about £150 of charges for going over my 'agreed' overdraft limit (4 x rejected direct debit charges at £30 each and 1x unauthorised monthly overdraft fee). Needless to say, I don't think this is fair.

I have a bit of history on this - I have been in the Daily Mail after I sued Alliance and Leicester in 2005 and was also interviewed about this in early 2006 by Simon Gompertz on the Working Lunch programme. But, after early 2006, the whole thing became front page news across the UK and, one way or another, I was either on sabbatical or didn't get hit with any other charges so I have rather lost touch. My first impulse would be to simply launch another moneyclaimonline action against Nationwide like I did with A&L, but I understand all the claims about bank charges are currently on hold?

I paid off the entire overdraft on this account, not including the £150, on the same day I wrote to Nationwide complaining about the charges (and wrote 'In full and final settlement of the outstanding balance on a/c no. XXX' on the back of the cheque).

Does anyone have any thoughts?

Mark

BritRael

a) Were the charges for going over your agreed overdraught limit stated in the T & C's?
b) Did you go over your agreed overdraught limit?

natweststaffmember

BritRael wrote: »

a) Were the charges for going over your agreed overdraught limit stated in the T & C's?
Those terms are currently the subject of the OFT test case litigation so please do not go there.
b) Did you go over your agreed overdraught limit?
You cannot have an unagreed overdraft with the bank since the bank will have agreed for it to go over so again let's not go there

Claims are currently on hold but if it was the first time you have been charged then see if they will refund any charges as a gesture of goodwill as it is the first time. That was advice for the OP.

ilesmark

Aha. You have opened up an interesting line of enquiry here. Yes the unauthorised monthly overdraft fee was for going over my 'agreed' overdraft limit - which I had done, by about £9, before the 4 direct debits hit the account and got rejected leading to the other 4 charges.

So what are the implications of the fact that the bank effectively agreed my going over the 'agreed' overdraft limit by allowing me to do so by about £9?

And how about the fact that they have banked my cheque paying off the whole amount (less the £150) despite the fact that I wrote 'In full and final settlement of the outstanding balance on a/c no. XXX' on the back of the cheque?

Lastly - yes of course I appealed to their better nature by asking for the charges to be wiped as a matter of goodwill and they still refused despite the fact it was the first time I had incurred charges on this account.

BritRael

ilesmark wrote: »

Aha. You have opened up an interesting line of enquiry here. Yes the unauthorised monthly overdraft fee was for going over my 'agreed' overdraft limit - which I had done, by about £9, before the 4 direct debits hit the account and got rejected leading to the other 4 charges.

Well they just seemed like obvious questions to ask. Although not so obvious to everybody er...perhaps we shouldn't go there...:rolleyes:

I suppose you might have had a stronger case (and more chance of success) had you only gone over with one bill. But maybe five was pushing it?

I got a charge for going overdrawn a few years ago (which was refunded), but the annoying thing for me was that my savings a/c with them had loads in it. I just hadn't moved it over in time. Luckily, although it was my fault, they let me off and offered me a free overdraught facility in case it happened again.

I suppose it could be that these letters are automatically generated in the first instance, so its then up to your diplomatic skills to get it waived I'd be tempted to visit the branch and have a friendly discussion (preferably with the manager) and emphasize how it is your fault and appeal to his/her better side as you paid it quickly upon realising your mistake. Don't get angry if the initial response is "no" though, as I'm sure if you are they'll not budge. Good luck.

As for writing 'full and final settlement' on the cheque, I don't think this will do any good. After all, surely its up to the bank to agree what is owed and not for the customer to decide.

ilesmark

I have already raised the issue of the letter being computer-generated and the fact that my going overdrawn couldn't possibly have cost them £150.

My understanding was that, when you wrote in 'full and final settlement' on a cheque, if the other party then accepted this they couldn't demand more - it's one of those ancient common-law principles. Of course, when you are dealing with a bank, with different departments, you are relying on the fact that the back-office people almost certainly wouldn't have checked with customer services whether there was any outstanding debt on the account before accepting the cheque; but failure to communicate internally is not a defence when you are dealing with a unitary organisation. I just wanted to cheque (sic) whether anyone had had experience of this when paying in a check.

I would like to either sue the bank to get my money back, or close the account and let them sue me for their charges - at which point I would, if I could, file a defence and let them justify their charges in court. Does anyone have any experience of doing this?

natweststaffmember

ilesmark, it is a standard reclaims and the argument that they didn't send out a letter is not worth the paper it is written on, if you'll excuse the pun.

ilesmark

My understanding was that, when you wrote 'in full and final settlement' on a cheque, if the other party then signalled their acceptance of this by banking the cheque, they couldn't then claim any extra. Much like the situation I came across some years ago, when a friend of mine got fired from a job and banked the cheque enclosed with the dismissal letter which was marked 'in full and final settlement', and then found out they had lost their right to further redress.

I would like to either sue the bank to get my money back, or close the account and let them sue me for their charges - at which point I would, if I could, file a defence and let them justify their charges in court. Does anyone have any experience of doing this?