unauthorised overdraft charges

my_definition

My boyfriend opened a new bank account in November and asked for everything in his old Lloyds account including direct debits to be moved to his new account which was then to be closed. We were told this would take some time and then got a letter to say that they could not change his wages. He did this himself and the first money moved in to the new alliance and leicster account was his January wages on the 28th. We got a letter from a&l on January the 11th to say that his direct debits would be moved over. One of these is a yearly subscription and the other contact lenses.

He moved in June last year and tried to change his address on the old bank account then and had no paper statements so didn’t notice that he hadn’t been getting any mail from them.

Today his mother (who lives at his old address) gave him some letters which turned out to be Lloyds telling him that his account has been overdrawn by £3 and that there would be charges. He phoned immediately and was told that he now has to pay £130 for all the debts to be cleared. Apparently the yearly dd has been moved and the other is in the process of being moved. Why it has only moved one I don’t know.

Where do we stand on the charges? I think £130 is unreal considering the original debt and I cant understand how he was overdrawn as his wages did go in in December. He has locked himself out of his online account so he can’t check the statements. I realise he should have checked the bank account but it was supposed to have been closed and the dd moved so he had no real reason to.

The stupid thing is he has now cancelled the contact lenses anyway. I would really love some help here guys preferably good news. Thanks.

Consumerist

Unfortunately, there doesn't seem to be any good news to be had here.

You say your boyfriend tried to advise Lloyds of his new address. You don't explain what went wrong.

If Lloyds has been writing to him since June 2009 to advise of the overdraft then it would seem they have done their best to keep him informed of the situation.

The first thing to do is to write to Lloyds advising them that he has actually moved. You will need to refer to any statements to find out how the overdraft has risen to £130 and then try negotiating with them for a refund. If, however, they have charged in accordance with their Ts & Cs, it's hard to see them backing down.

I'm really sorry to be the bearer of bad news but negotiation does really seem your only option. If you can demonstrate genuine hardship, however, they are obliged to be sympathetic and if they are not, in these circumstances, you may have recourse to the Financial Ombudsman Service after you have received the bank's final response to a complaint.
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my_definition

He told lloyds that he had changed his address and they didnt change it. This also happened with our joint account and i was standing next to him when he asked and they just didnt do it.

Lloyds first letter was in december which was when the overdraft seems to have happened as he was still using this account regularly until then.

Is £130 in fees normal? i accept that he should have looked at the account but he did instruct A&L to move everything and we did get a letter saying this had been done.

We are both students and to be honest £130 is most of his wages and is about 6weeks of mine we cant really afford to pay this which seems to have been partially an error on the side of the bank.

Also if we write a letter wont the fees increase? apparently there charging £6 a day

Thanks for the advice. i hope i dont come across as rude but i am really upset about this its a lot of money to us and will need to come out of money for the bills

Consumerist

Well, if they are charging £6 per day, it is easy to see how quickly it can increase to £130 in total.

The only course I can suggest is to discuss the matter (politely) with Lloyds and explain your financial position. You may be able to negotiate an acceptable compromise.

If that doesn't help then follow it up with a letter giving details of joint income and expenditure to demonstrate hardship. Keep a copy of the letter as evidence in case you need to demonstrate to the Financial Ombudsman Service (FOS) that you are in hardship.

You will then need to follow the bank's formal complaints procedure to try again. If you are not satisfied with the final response from the bank, you then have the option of referring the matter to the FOS. I regret that this likely to be a long and stressful process.

If at all possible, your best bet may be to borrow from a friend or family member to settle with the bank and repay them as soon as possible.

I wish I could be more helpful.
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my_definition

if we managed to pay the money back would be be likely to get any kind of refund?

vaporate

Sounds like a legal shark charge lol.

Lloyds is at fault here.

Consumerist

my_definition wrote: »

if we managed to pay the money back would be be likely to get any kind of refund?

I think it unlikely. That's kinda having it both ways.

Unfortunately, I don't really agree that Lloyds is at fault at this stage.

If you present your case to Lloyds and they are unreasonable then perhaps, in those circumstances, some fault may attach to them.

The best additional advice I can offer is to try to remain as calm as you can during any negotiations with Lloyds. I get the feeling that some customers are so agitated that they rub people up the wrong way - that is not the way to win any sympathy for your situation.

One more thought is that the FSA (0300 500 5000) are responsible for seeing that banks treat customers fairly. You wouldn't do yourself any harm by having a word with them before contacting Lloyds to investigate any fairness issues arising from the circumstances.
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my_definition

thanks i think they are atleast partially to blame here. Who knows what would have happened if his mum hadnt given him the mail. i can see how its added up but for a loan of like £3 this is a rip of

Consumerist

my_definition wrote: »

thanks i think they are atleast partially to blame here.

I would agree that Lloyds are to blame to the extent that all banks are to blame for their outrageous overdraft charges.

Failure to register the change of address is also their fault but it may be difficult to prove unless you put it in writing.

The lesson here is simply do not trust banks - recheck everything they do and anything they should do.
Assume they are incompetent idiots then you will rarely be disappointed.
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my_definition

yea i rarely trust banks anyway but my OH has to learn his lesson. the thing is its rather expensive lesson and we cant really afford to learn it. i thought we migh have had more of a case because of people reclaiming bank charges but never having used an overdraft i dont have any experience of what this applys to. To be honest im just totally gutted and cant understand why his mum would keep these letters for so long especially since she works at the bank

vaporate

Consumerist wrote: »

I think it unlikely. That's kinda having it both ways.

Unfortunately, I don't really agree that Lloyds is at fault at this stage.

If you present your case to Lloyds and they are unreasonable then perhaps, in those circumstances, some fault may attach to them.

The best additional advice I can offer is to try to remain as calm as you can during any negotiations with Lloyds. I get the feeling that some customers are so agitated that they rub people up the wrong way - that is not the way to win any sympathy for your situation.

One more thought is that the FSA (0300 500 5000) are responsible for seeing that banks treat customers fairly. You wouldn't do yourself any harm by having a word with them before contacting Lloyds to investigate any fairness issues arising from the circumstances.
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With FSA losing the court battle with unfair overdraft charges, I doubt that will hold much weight.

In future though, always cover yourself. Never assume simple demands to the bank are done correctly.