Advice on bank charge

bunni_2

Hi, I just need some advice and some clarification on a few things.

I recently got my bank statement and found that my account was overdrawn by 98p. For this reason, I am going to be charge £29.03 by the bank for maintenance charges on 1st February. My account was overdrawn after I used my debit card to cover a payment in a shop. I got a mini statement before I went into the shop and it said that I had enough. It was only overdrawn for four days and I really can't afford this charge so, any advice on what I should do would be great.

I would also like to know if this is right

- The debit card will be declined if the amount to be paid exceeds the funds in your account.

- Is the bank liable if they allowed me to go overdrawn, even though I do not have an overdraft

clj_2

the banks will say you asked for a temporary overdraft by using your card without available funds and hence charge you an extortionate amount. They will also tell you it is your responsibility to ensure funds are available

natweststaffmember

Personally, I would agree with your sentiments but if this is the first occasion simply ask them to refund it based on your banking history with the provider.

ElmosFriend

there is something fishy about bank charges and I want to get to the bottom of it. Barclays ruined my xmas and birthday lately by charging me now over £200 over the past 6 weeks.

First they charged me £88 for being within the reserve limit. I then cancelled the reserve to be greeted by £32 in guaranteed transaction fee's because there was no reserve limit and the account was now just overdrawn. Then they charge me another £88 for reserve fee's for the time I was within my reserve limit prior to cancelling it! I am now £217 overdrawn made up entirely of fees.

Today I got a letter saying a direct debit had bounced so another £8 charge. I did cancel all debits while trying to resolve the overdraft but unfortunately my car insurance firm would not take any payment unless a direct debit was in place!! i forgot to cancel it

As you can imagine I am extremely upset and feel that the world is a complete pig.

Charges are one thing but how can the banks be allowed to take upto £200 from an overdrawn account whenat the same time they are saying there is no funds in the account then charge us for it??

Charging an overdrawn account is like car clamping! They are placing their charge on the account so its use is limited therefore producing more charges and liability. A car clamper will clamp a car then charge the owner £100 a day because they cant move it. The banks do the same thing!

Should the banks not send a bill or invoice for these charges?? Can I claim these charges against tax? Is there a receipt??

Getting charged is one thing but surely the method by which they apply the charges is wrong. Would anyone like to contribute to a legal group action regarding the method of charging?

Jason @ essex

esmerellda

£88 is 4 weeks overdrawn into the reserve limit.

they dont usually allow you to cancel the reserve until you are out of the reserve (ie back in your normal overdraft)

The £32 will be 4 x £8 charges for payments that were guaranteed (guaranteed cheques/debit card transactions) and any unguaranteed ones will bounce incurring £8 a shot.

Charges are one thing but how can the banks be allowed to take upto £200 from an overdrawn account whenat the same time they are saying there is no funds in the account then charge us for it??

that indeed is the main problem with these fees.

We're working on the method of charging (or charging structures) with the OFT and trying to get voluntary compliance from the banks.

The Supreme court have thrown out arguments about the LEVEL of the charges, and tbh £8 isnt too bad, but the method they charge still is unsatisfactory and charges are still creating charges.

Have a read about

ElmosFriend

well I am sitting here with no money, no food or any means to get any. All I have is the internet and my computer so have drafted the following letter to Barclays. Any help appreciated

22/01/10

To BARCLAYS BANK PLC,

I have repeatedly requested that you stop applying charges to my bank account but you have continued to do so.

Please remove all charges from my account that you applied since 1/12/09 within 7 days of this letter or I will have no alternative but to seek a judgment against you on the matter.

You have charged my account even though it has no funds available to charge against. As previously discussed with you, this creates a significant imbalance in my rights and obligations under the contract.

My claims against you will be as follows

• The contract terms regarding the application of charges to the account are not relevant to an overdrawn account. Charging my account for not having any money within the account is grossly hypocritical and unfair.

• There is nothing in the contract terms where I have waived my rights to be billed for charges, service fees or any liability. Your refusal to provide remedy other than the given option of surrendering cash to you in exchange for the release of the account services amounts to harassment and possible blackmail.

• Any fees or penalties for your services or breach of contract require a clear liability to be produced by you which should include a description of costs you have incurred as a result of the breach or use of service. This also includes that you should be clear as to what a particular service or charge is for i.e reserve fee: financial product or penalty charge? In the case of a reserve fee you should provide APR information in line with the Consumer Credit Act or be clear that time spent within the reserve limit is charged by a set penalty.

• Your action to recover liability by means agreed in the terms and conditions nullifies the liability you created because you are therefore in agreeance to the terms and conditions being breached by providing a service that allows the terms and conditions to be breached.

Unfair Terms
5. - (1) A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.

Yours Sincerely,
me