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Charges causing more charges! Is it legal?

Hello,

I was wondering if anyone could tell me whether it is legal for a bank to charge you for going over your overdraft limit due to their charges taking you over it!?

A friend of mine told me it was illegal for them to do that, would like to know for certain before I kick up a fuss; it has happened to me many times and is really, really frustrating.

Many thanks!

Comments

  • Alpine_Star
    Alpine_Star Posts: 1,384 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    As things stand I'm afraid it is.
  • dunstonh
    dunstonh Posts: 121,314 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    A friend of mine told me it was illegal for them to do that

    Ask your friend how many times she has seen the police called round to the banks to arrest the bank manager. ;)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • davidgmmafan
    davidgmmafan Posts: 1,459 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Its perfectly legal, and what's more the only thing to stop them increasing the charges again is pressure from the public or the media. Sadly our elected leaders haven't lifted a finger, and the OFT has taken a very tame position, IMO since the test case.

    I know I know there is an inherant contradiction in the bank calling the OD unauthorized when they themselves on some level DID authorize it. But haven't you heard you live in rip off britain. Its been around for a while now.

    If you are on benefits you could try the right of appropriation thing, but most banks will respond by saying right of what???
    Mixed Martial Arts is the greatest sport known to mankind and anyone who says it is 'a bar room brawl' has never trained in it and has no idea what they are talking about.
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