Excessive charges! Please help.

jj1982_2

I have a current account with alliance & liecester and have just been charged £25 for an un-authorized overdraft in which they paid a direct debit a day before my money was due to go into the account, thus charging me the amount of the direct debit and the £25 item review fee. I called them to explain that i have been on benefits since february when i lost my job and that i would be able to pay the full cost of the bill which was £22 plus the £25 but was then told that i was getting charged £5 a day and that i now owe them the £47 plus £5 a day for the last 20 days. As someone who recieves benefits i asked them to stop these charges as they are not only unfair but i also haven't got the means to pay it, i was passed over to customer relations who then sent me a letter to say they would drop £25 from the total figure of £147 but i will have to pay the rest. Please could anyone advise me on my rights in this case as i do not want to be left with a nasty mark on my credit file and also being chased by debt collectors and the like for money i just cannot afford to pay.

onlypaddy

just been charged £25 for an un-authorized overdraft

was then told that i was getting charged £5 a day and that i now owe them the £47 plus £5 a day for the last 20 days

So, is it just as in today, or was charged 20 days ago but not bothered to check my account balance?

What were the original circumstances of you going overdrawn? you haven't provided enough detail

zppp

jj1982 wrote: »

I have a current account with alliance & liecester and have just been charged £25 for an un-authorized overdraft in which they paid a direct debit a day before my money was due to go into the account, thus charging me the amount of the direct debit and the £25 item review fee. I called them to explain that i have been on benefits since february when i lost my job and that i would be able to pay the full cost of the bill which was £22 plus the £25 but was then told that i was getting charged £5 a day and that i now owe them the £47 plus £5 a day for the last 20 days. As someone who recieves benefits i asked them to stop these charges as they are not only unfair but i also haven't got the means to pay it, i was passed over to customer relations who then sent me a letter to say they would drop £25 from the total figure of £147 but i will have to pay the rest. Please could anyone advise me on my rights in this case as i do not want to be left with a nasty mark on my credit file and also being chased by debt collectors and the like for money i just cannot afford to pay.

You don't have any rights as such. It seems as if the bank has made a gesture of goodwill reduction of the charges. I would suggest sending in a statement of affairs ino the bank in question, and ask to make payments towards the debt, based on what you can afford to repay.

The only way a bank will consider to remove charges is via a gesture of goodwill (which they have already), or where they deem you to be in financial hardship. If you send them an offer of repayment, they are less likely to sell the debt to a collection agency, so you need to keep communicating with them in writing.

YorkshireBoy

jj1982 wrote: »

Please could anyone advise me...

1. DDs are the biggest cause of informal overdraft requests, and associated charges. If money is tight, cancel DDs and pay by other means when you have the funds available. You may pay more for manual payments, but you'll save a lot more in charges.

2. Monitor your account more closely. Do you have online access?

3. Familiarise yourself with your account T&Cs, specifically the charges to be applied in certain circumstances.