Cautionary tale - A&L Premier Direct account

careylouwho

Hi all,

Just wanted to post on here in case anyone else is as stupid as me and not realised what they'd signed up for.

I have/had and A&L Premier direct current account. I used it for a few years with my salary paid in, no problems. Then my partner and I got an offset mortgage with a different bank and decided for go a joint account. I brought my A&L account to a £0 balance and forgot about it. I had very wrongly assumed that if I wasn't using the account I didn't need to be funding it. So obviously, it is actually my mistake for not realising it. As I thought I had a zero balance, I didn't check the account again.

Roll on two-ish years and I just got a collection notice from Santander for £160! It turns out I've been accruing both underfunding charges and overdraft fees for all this time without being aware. Apparently, my agreed overdraft had gone down to £50, so I actually could have been charged for non-agreed overdraft charges of much more than the £5/month they've been charging me.

Anyway, A&L have refunded £25 (all they are cleared to do) and I have an agreement to pay back £20/month. The lady at A&L said that this happens a lot, that lots of people stop using the account and then accrue charges.

To me the worst thing is that as it is an on-line account you get noticification that this is going on or any notice that you are over your overdraft - nothing!

I don't think I can claim back the money as they are legitimate charges that I had just not realised that I'd agreed to.

Anyway, thought it was worth posting here in case anyone else is thinking about changing banks from A&L and doesn't bother to cancel the account.

Feeling very daft,
careylouwho

onlypaddy

Sorry - this cautionary tale has been heard many times on here. The underfunding fee is in the terms and conditions and is clearly set out in the application criteria (or it was when I applied)

Advice for the future - close unused accounts. Never assume anything

jen245

Lesson learned I think, if you stop using an account, and have no plans to use it again, close it, especially if its a fee charging account! Also read t&cs!!
I also had this account, and have switched to another bank, and have just closed my old A&L account, and Im going to keep on at them now, until I get my closing balance cheque!

System

Are they not supposed to send you a warning letter to give you a chance to fund the account (or close it)?

chocaholic110

OH has had exactly the same letter today - two years after we thought he had closed the account. We used the Barclays switching service and thought we had ticked the box to close the account. Barclays are looking into it.

What I don't understand is that why have we had no correspondance at all until receiving this collection notice today? Surely in two years they could have written, before the fees got to £163!!

YorkshireBoy

Heng_Leng wrote: »

Are they not supposed to send you a warning letter to give you a chance to fund the account (or close it)?

Not sure, but they do send a monthly e-mail (or at least 24 in the case of the OP...all of which were ignored)...

Subject: Please check your online statement

Dear Mr XXXXXXX.

This is a reminder for you to view your latest monthly account transactions, including any credit interest you may have earned, on your Premier Direct Current Account and PlusSaver Account through the Alliance & Leicester internet banking service.

Remember, you will not receive a separate bank statement in the post.

These transaction details are only available online.

G_M

How do you think they can afford to pay people £50 to switch to them, and pay interest on credit balances?

Funded by the customers who fall foul of the T&Cs!

AnonymousForObviousReason

YorkshireBoy wrote: »

Not sure, but they do send a monthly e-mail (or at least 24 in the case of the OP...all of which were ignored)...

I've never had an email from Santander, when do you get them? is there an option? They didn't even email me about a complaint or a fraudulent activity on my account but rather send me a letter. Which these people didn't get.

YorkshireBoy

AnonymousForObviousReason wrote: »

I've never had an email from Santander, when do you get them?

The account in question is the Alliance & Leicester Premier Direct account. It's an online account and has no paper statements and limited branch facilities.

The e-mail is sent monthly, asking that you check your statement, where you'll also see notice of any charges pending, and the date they're to be debited to the account...not sure if the underfunding fee is simply debited, rather than notice given, though and the resultant 50p per day (max £5 per month) or £5 per day charges are then triggered (for which advance notice is certainly given)?

chocaholic110

YorkshireBoy wrote: »

The account in question is the Alliance & Leicester Premier Direct account. It's an online account and has no paper statements and limited branch facilities.

The e-mail is sent monthly, asking that you check your statement, where you'll also see notice of any charges pending, and the date they're to be debited to the account...not sure if the underfunding fee is simply debited, rather than notice given, though and the resultant 50p per day (max £5 per month) or £5 per day charges are then triggered (for which advance notice is certainly given)?

Nope, I get this email as I still bank with them (for the next few days at least!) but OH hasn't received one since supposedly closing his account two years ago. I still can't understand why they would wait two years to write!

Tried accessing OH's account online using his old details - guess what - doesn't work!