A & L charging - advice needed

Evie_P · 4 September 2006 at 7:03PM

I am going to try and avoid really ranting about alliance and leicester!! BUT I went over drawn recently (they refused to increase my overdraft previously ( when my work paid my expenses late the last time)

I got charged the stat 34 pounds per failed item. they have now charged me a 25 unauthorised overdraft fee.... can they do that?

I have not run my account any different form my old account with halifax yet I have never had so many charges as with A & L or been with a bank that is so inflexible. yes you save overdraft fee but they have had nearly 300 out of me so far so it woulfd have been cheaper to stay as I was.

Advice gratefully received....

I have written to appeal I will let you know how i get on!!

TTFN

Motor_Mouth · 7 September 2006 at 9:31PM

Hi Evie P

Your post strikes a chord. I moved my current account to the Alliance & Leicester last year, attracted by the high rate of interest, zero overdraft rate, wlecome bonus (£25 I think), travel insurance, etc. All very nice. But a month ago, I made a silly mistake by not leaving enough time for a cheque I'd paid in my accoun to clear before five or six of standing orders and DDs left my account. The net result was a just over £300 in crazy charges.

So I challenged A&L in a letter using the template provided in the helpful websites recommended by MSE.

A&L replied arguing that their charges are by no means unlawful and that they weren't prepared to offer a refund.

No problem, I thought. I could just proceed to step two by taking them to court. And as we know, no bank ever wants to be taken to court over a piddling few hundred pounds. So they will surely pay up.

But then I read a news item in Which? (July 2006, page 6, entitled: Bank shuts accounts of dissenters) According to Which?, the A&L have admitted to shut "dozens of accounts" of those who have dared to callenge its high penalty charges. A&L say they prefer a "clean break" from dissenters who quibble. (Here, here. After all, how dare they?) Seriously though , if a bank decides to close your account there's also an issue that customer's credit rating could suffer as a result, says Which?

So I'm now switching my bank account before challenging A&L. The case continues.