withdrawn overdraft with no warning, fair according to FSA?

TheBex

Hi,

Haven't posted in a fair old while, but am rather hoping someone will be able to help with my query. I did try a few search terms, but didn't find what I'm specifically looking for.

My friend has a bank account with Barclays and rang them for a bit of a complain about charges (don't know the details of that bit). They then removed his overdraft facility but neglected to tell him. Que him being hit with charges for an unauthorised overdraft. He called to complain about that and was told it's totally legal, it's in our T&Cs.

Now, let's put aside the business about how they've withdrawn his permission to borrow money but continue to lend it to him anyway (vile behaviour) and the bit about how they're legally entitled to do it (I know we should all read our T&Cs, but he didn't, and nor did thousands of other people) and ask: is it fair to do all this and not bother to mention it to him?

I thought the FSA had made some sort of rule to make the banks be fair... Is there provision under this to complain to the bank and if necessary the ombudsman? The goal of this complaint would be to recover the charges since they took away the overdraft.

What do you all think?

opinions4u

While they should have told him they were withdrawing the facility, they do not have to give notice. The letter can come after the event.

It is clearly explained by lenders that overdrafts are repayable on demand. The FSA has never stated or implied that this shouldn't happen.

p00hsticks

opinions4u wrote: »

While they should have told him they were withdrawing the facility, they do not have to give notice. The letter can come after the event.

It is clearly explained by lenders that overdrafts are repayable on demand. The FSA has never stated or implied that this shouldn't happen.

But surely the letter IS the demand ? How can a bank demand it without communicating with the customer ? I accept that overdrafts are repayable on demand, but do think it's only fair the banks should have to write to a customer telling them that they intend removing the facility and giving them the opportunity to repay it (say within a limit of 14 days) rather than just remove it without letting the customer know.

My thought in the particular case of the OP is that perhaps in the heat of the moment on the phone, the friend may have told them where they could put their banking services or some such expression, and the customer serrvices person interpreted this as an instruction to remove the overdraft.

TheBex

Thanks for the replies guys, Pooh I think you might be on to something, he could well have done that!

olly300

TheBex wrote: »

Thanks for the replies guys, Pooh I think you might be on to something, he could well have done that!

Alternatively the customer service person fed up with being insulted decided to do it anyway, instead of slamming the phone down on the friend.

Things like this do happen.

All calls are recorded for training purposes so you can do a Subject Access Request and get a copy under the Data Protection Act for £10.