Overdraft charges

the-mango

I'm not sure if this is the right place to post

but...

I went overdrawn about 12 pounds on the 24th of November due to a cheque I had written a few months ago for 15 pounds, my account was then paid into the next day and has never else been into minus numbers. I was wondering what these two fees are and if I could sort them of out or just leave them?

24 Dec 09 INSTANT OVERDRAFT REQUEST FEE - PAID ITEM PAYMENT BY CHEQUE WITH SERIAL NO XXXXXX
15.00
24 Dec 09 UNAUTHORISED OVERDRFT/INSTANT OVERDRFT MONTHLY FEE
25.00

Thank you very much for your help - I don't understand banking at all

natweststaffmember

the-mango wrote: »

I'm not sure if this is the right place to post

but...

I went overdrawn about 12 pounds on the 24th of November due to a cheque I had written a few months ago for 15 pounds, my account was then paid into the next day and has never else been into minus numbers. I was wondering what these two fees are and if I could sort them of out or just leave them?

24 Dec 09 INSTANT OVERDRAFT REQUEST FEE - PAID ITEM PAYMENT BY CHEQUE WITH SERIAL NO XXXXXX
15.00
24 Dec 09 UNAUTHORISED OVERDRFT/INSTANT OVERDRFT MONTHLY FEE
25.00

Thank you very much for your help - I don't understand banking at all

The first fee is because the item was paid taken you overdrawn. The second is because you are in excess of any overdraft agreed over a period of month. When was the excess corrected?

the-mango

natweststaffmember wrote: »

The first fee is because the item was paid taken you overdrawn. The second is because you are in excess of any overdraft agreed over a period of month. When was the excess corrected?

If you mean excess as me being in negative, money was put into the account the next day and the account has not been into negative ever since

loveandlight

posted by the-mango
Thank you very much for your help - I don't understand banking at all

You need to learn really fast then. Banks are only there to make money out of us. They are not there to help us and they will use devious means to get more money out of us.

For example, last week I was overdrawn which wasn't a problem for me as I was within my agreed overdraft limit. Then my earnings got paid into my account and it showed as cleared funds in credit on my account and even when I phoned the banks automated system it still said I had cleared funds and was in credit. So I made a very small online transfer late at night and tried to make another small transfer the next morning only to be refused due to 'insufficient funds'. It turns out the bank had decided to do a random fraud check on my account on the credit that had been paid in resulting in them blocking my money and me not being able to access it even though all their systems showed me as being in credit. After a few phone calls they finally released the money to me and I was able to access it.

They were ready to charge me for being overdrawn in excess of my limit for the transfer I made late at night even though it was clearly their fault but thankfully my money was released in time but I'm still going to make an official complaint after Christmas about it.

ERICS_MUM

When you say that you wrote the cheque out months ago, do you remember when exactly ? If it was paid into the other account more than 6 months after the date on the cheque then your bank should have asked for your agreement before they debited it from your account.

Linda

the-mango

It wasn't after six months
it was probably more like 2 or 3
anyhway i dont mind the fee of 15 pounds i just dont undersatnd what the 25 pounds one is

Premier_2

the-mango wrote: »

It wasn't after six months
it was probably more like 2 or 3
anyhway i dont mind the fee of 15 pounds i just dont undersatnd what the 25 pounds one is

Think of it as the £15 being the application fee (to make the checks to see if they should lend you the money) and the £25 being the ongoing service charge for the overdraft whilst they are actually lending you that money.

dunstonh

anyhway i dont mind the fee of 15 pounds i just dont undersatnd what the 25 pounds one is

The way I read it, the £15 is like the arrangement fee as the account manager had to look to whether to pay the item or not. The £25 is the use of the unauthorised overdraft during the month (charging period).

This is the more modern way the banks have structured the charges to be more compliant with what they believe they should be. In many cases, whilst fairer, it does make it more expensive when you go into an unauthorised overdraft.

the-mango

So even though it was only over drawn for one day it's still the use for the whoe momths? so if I went into an unauthorised overdraft twice then it would be a charge of 15 pounds for the first time 15 pounds for the second and just one lot of 25 cos that covers the whole month?

esmerellda

Yip

If its the first time you have incurred a charge a call to the bank may be in order as sometimes they will waive the fee if it is a one off.

Premier_2

If you are going to frequently require borrowing a small amount of money for short periods (e.g. twice in a month), you would probably be better off appyling for an authorised overdraft.