Business Account - reclaiming bank charges

nic_nac_3

I have a new business and bank with Nat West because they offered the longest term of free banking. I just asked for an overdraft to cover me whilst i wait for my overdue VAT return and they gave me an automatic £1000 o/d which was the most they could do with no security. However they have charged me £110 arrangement fee which I was not made aware of. Does anyone know if this should be included as part of my free banking package? Can I dispute this amount which seems excessive?

Would appreciate any advice as a new business owner.

Thanks

natweststaffmember

I would ask whether the overdraft bit is part of the package and therefore non chargeable. Overdrafts on businesses are chargeable and not reclaimable i am afraid.

nic_nac_3

Thanks for your reply.

If it is the case that it is not part of the free package then fair enough. But how can Nat West justify charging 11% arrangement fee when HSBC only charge 1.75%?

crazyworld_2

Hi Nic Nac, it appears you're saying that you weren't informed of the full cost of the service, is that right?

If so, then the Consumer Protection Act 1987 appears to address this:
http://www.opsi.gov.uk/si/si1987/Uksi_19871680_en_1.htm

Consumer Protection Act 1987:

"2.1.1 The Consumer Protection Act 1987 makes it an offence to indicate a price for goods or services which is lower than the one that actually applies. You should not therefore show one price in an advertisement, website, window display, shelf marking or on the item itself, and then charge a higher price at the point of sale or checkout. In addition, specific regulations apply to particular types of sales and ways of selling—eg retail sales (including the Internet), sales of food and drink which involve service, distance contracts, resale of tickets, package travel, etc. Your local Trading Standards Services or Home Authority will be pleased to advise you on the current regulations that are relevant to your business and of any good practice guidance which is also relevant.

2.2 Incomplete information and non-optional extras

2.2.1 Make clear in your price indication the full price consumers will have to pay for the product. The consumer should always be fully aware of the total cost including eg postage, packing, delivery charges, insurance, etc. before they commit themselves to the purchase. Some examples of how to provide this information in particular circumstances are set out below."

I'm not a legal expert, but it might be worth getting advice on this from the CAB or someone similar.

sophieo_3

Hi there,

I have been charged £30 a day total of £120 for the 4 days I had unpaid items/went overdrawn. I don't get an overdraft with the account you have to pay a hefty fee for an overdraft.

Am I able to claim back these charges?

Thanks

princesskez26

sophieo wrote: »

Hi there,

I have been charged £30 a day total of £120 for the 4 days I had unpaid items/went overdrawn. I don't get an overdraft with the account you have to pay a hefty fee for an overdraft.

Am I able to claim back these charges?

Thanks

Yes you can claim these charges back, I have bumped up the thread for you 'Business account-reclaiming bank charges' which should be of help to you

Kez

sophieo_3

Thanks for your help with this.....

THE_REAL_BEARDY_BLOB

I work for a major national retailer who offers its customers an internal business account.. To open one you must open certain criteria and due to the fact that you have up to 60 days to pay it is classed as a Credit account..

I had a customer in the other day with a query on her account.. She doesnt use it regularly and couldnt remember making a small £20 purchase in March,, Our company had sent her a final demand for the money and her statement stated that the payment was overdue and that a charge had been levied according to a certain act that allows us to levie the charge..

I looked at her statement to see that we had charged her £40 for the late payment..

I was disgusted

Any Comments

LozBingley

This is a penalty charge and thus can be claimed back in the same way bank charges can be. You may wish to inform your customer that she is entitled to claim it back in the same way that this site tells its members to claim back bank charges

zorrotgb

I have been trying to reclaim default charges on my now closed business account and the " silly billies" at HBOS thought they were dealing with my personal account !!! the good news is that they have admitted to over charging me by £521 which I didn't really know about and are now sending out a cheque.
The bad news is that they have passed my letters to the business section who have now replied saying that all the recent publicity refers only to personal accounts, does anyone know if this is correct as I would like to pursue them for these charges.