Bank Charges Reclaiming Guide discussion

VickyH87

Good morning, could anyone please offer any advice? My dad has a Lloyd’s account with an overdraft, in November 2017 they upped the interest charges on the overdraft massively, in November 2017 my dad arranged a meeting with the bank to discuss what options he had as the interest charges were so high, as not much could be done he discussed moving banks, the advisor told him there would be no point as all banks would be following suit with these high interest charges... my dad decided to stay with the bank as there would be no point in moving banks if they will all charge the same. Well from my knowledge no other bank is charging interest rates for overdrafts like Lloyd’s are. I feel like this misinformation has manipulated a man in lots of debt to stay with a bank to pay these high interest charges, if he had moved banks he wouldn’t have been charged a quarter of what he has been the past year and half! Does anyone know what he can do from here? Thanks in advance

[Deleted User]

He should visit the DFW boards for advice on cutting his costs and repaying the debts faster.

An employee of one bank can't be held responsible of the charging practices of another bank.

Nasqueron

VickyH87 wrote: »

Good morning, could anyone please offer any advice? My dad has a Lloyd’s account with an overdraft, in November 2017 they upped the interest charges on the overdraft massively, in November 2017 my dad arranged a meeting with the bank to discuss what options he had as the interest charges were so high, as not much could be done he discussed moving banks, the advisor told him there would be no point as all banks would be following suit with these high interest charges... my dad decided to stay with the bank as there would be no point in moving banks if they will all charge the same. Well from my knowledge no other bank is charging interest rates for overdrafts like Lloyd’s are. I feel like this misinformation has manipulated a man in lots of debt to stay with a bank to pay these high interest charges, if he had moved banks he wouldn’t have been charged a quarter of what he has been the past year and half! Does anyone know what he can do from here? Thanks in advance

It was up to him to independently research this, him believing a bank staff member would be able to predict what other banks would offer was perhaps a bit naive.


Do you have any evidence that shows no other bank in a like for like comparison would have raised rates (rather than general interest rate changes)?

dunstonh

Does anyone know what he can do from here?

Clearly lloyds have done nothing wrong. So, nothing to complain about there.

He has the choice to stay or go to another bank. Whether another bank would consider him is a different matter though. Banks do not normally like taking on new customers who are immediately in high levels of overdraft that is not easily repaid.

[Deleted User]

VickyH87 wrote: »

I feel like this misinformation has manipulated a man in lots of debt to stay with a bank to pay these high interest charges, if he had moved banks he wouldn’t have been charged a quarter of what he has been the past year and half!

Would another Bank have taken on your Dad's existing debt though? It looks likely they wouldn't if he had lots of debt.

I can't see you have any complaint, to be honest...

Ehmdc

Hi

I am currently on a DMP with StepChange, I did have a overdraft of £4000 with hsbc, but managed to use a credit card ( not a transfer) to pay the overdraft off, should this ever have been allowed ?

Another issue

Also I forgot to cancel my direct debit for my mobile contract, (stupid I know) which resulted in me having a unauthorised overdraft and being charged fees of approx £350, the account is now closed, ( closed March 2019) now I am currently on a DMP to pay this debt, do you think I could claim these bank charges back for this period ? (From January 2019)

Any advice greatly appreciated

[Deleted User]

You can't claim back bank charges simply because you "forgot" to cancel a direct debit. You have no one to blame but yourself for subsequently going into the red and incurring charges I'm afraid.

Not sure why you would pay off your overdraft with a credit card, was the interest not higher on the card?

Regardless, it's hardly the Bank's fault that you chose to do this and it certainly doesn't somehow entitle you to a refund.

Ehmdc

Thank you for your reply

Obviously I didn’t make good choices, which is not the banks problem, But debt makes you act crazy, hiding one problem with another, I just was wondering if anyone else that may have been in a similar situation, were the banks were sympathetic, I definitely don’t think I am entitled

[Deleted User]

Ehmdc wrote: »

I just was wondering if anyone else that may have been in a similar situation, were the banks were sympathetic, I definitely don’t think I am entitled

Post on the "Debt Free Wannabe" board here at MSE, where you'll find people only too willing to offer their experience and support.
If you are already on a Debt Management Plan then you are already in receipt of assistance. You are unlikely to get any refunds of bank Charges from a closed account, although Banks are certainly required to respond sympathetically to those in current financial hardship. Explain your current circumstance to them, while avoiding placing any blame on them and you may get a refund of (some recent)charges.

Nattyc

Can anyone help?? I had monthly fees from both Lloyds and Santander quite a few years ago but have different accounts now so no record of the account numbers or statements. Is there any way I can still do the reclaim for monthly fees? I was sold these accounts under the " this is the account you have to have" remit, not offered other free accounts and didn't know any better! Thanks in advance