93p overdrawn... £80 charge. *sigh*

Johnny_Lee

So a variable Direct Debit puts me overdrawn by 93p for 15 days.

£5 a day = £75.00
plus a nice bonus £5 admin fee = £80

I'm absolutely loathe to pay this but I'm not sure what arguement I've got other than it being sickeningly out of proportion. I work it out at being the equivalent of 209,319% APR!

Other info.

This is an A&L account I've only had for 3 months. I switched for their 0% overdraft (MSE tip!), but then they wouldn't match the limit I'm getting at my existing bank so I was happy for this account to sit quietly at £0.00. But they had already transferred a few DDs over, so I transferred some money over to cover those (although not enough apparently) while I moved the DDs back to my original account. As soon as I noticed I was 93p overdrawn (15 days later) I transferred 93p over, so my balance was back to £0.

I've had nothing but trouble from this account so I'm more than happy to tell them to stick it. Are they likely to drop this ridiculous issue to keep my custom?

Thanks for reading! :beer:

Extant

You can give it a try, but on the basis of your custom (opened for a product, turned down for the product, then barely use the account) I doubt you're going to be seen as worth fighting for. And you're right about having no argument - you failed to cover a direct debit that you knew to be variable correctly. Even though you knew it was variable, you still didn't check your account for 15 days after.

Also, why are you working out the APR? It's an erroneous comparison.

noh

This is an A&L account I've only had for 3 months. I switched for their 0% overdraft (MSE tip!), but then they wouldn't match the limit I'm getting at my existing bank so I was happy for this account to sit quietly at £0.00

If you are not funding it with at least £500 a month expect to be charged a £5 underfunding fee at some point.