So I'm closing my Nationwide flexaccount...

bylromarha

Had the account since 2004. Used it here and there, but never my main account.

Began using it this month as a secondary account for my business transactions. As it's a debit card account, as with all debit cards, I expect any transactions which there is no money in the account for to be declined. That's the whole point of a debit card, isn't it?

It appears Nationwide gave me a "reserve" ie an overdraft, of £100 and will honour all payments that go through up to this amount and charge me for each one. So I've been charged 4 times for 4 small transactions. £60 charges for £20 of transactions.

The only way I can get rid of this reserve is via online banking - I don't have it.

I ring them up and the best they can do is remove 2 of the fees from 1 day's transactions. I'm not happy, so I speak to a supervisor. The supervisor tells me the same and they can only remove 1 fee. I remind her her colleague said 2 would be removed, supervisor repeat only 1 can be removed, and am currently awaiting a call back from the manager who will have listened to the phone call. I'm not allowed to listen to it apparently, so the manager has the final say.

Am shocked with Nationwide - have banked with them since birth, kids have accounts with them, have never known such underhanded ways of moneygrabbing

I know there will be responses to this thread reminding me it's all my own fault for not being at the cashpoint every minute of every day, but I didn't give anyone any authority for me to borrow their money. They put it on my account and hid it under the term "overdraft" - which I knew I didn't have, so didn't read that bit as it didn't apply to me.

So if you're a Nationwide customer and you expect a debit card to remain a debit card, be warned, it isn't.

reehsetin

im pretty sure it's the way every single bank operates now

bylromarha

I have an overdraft amount first direct asked me about, not assumed I wanted. they review it with me every year.

My abbey account definitely declines anything if it means it goes overdrawn, as did my barclays account when I last used it in 2009.

A debit card should remain just that - if you are trying to debit something via card you don't have funds to debit, you shouldn't be able to debit!

deady

You don't have to have an overdraft to go overdrawn. It's an unauthorised overdraft, which is why you get big charges - because you're not meant to go overdrawn.
Debit cards to let you pay for things if you have no money in your account, except if you have an Electron card or a Nationwide cash card+/all auth card, so as you have a FlexAccount you won't have either of these because a) NW don't offer Electron b) you can only get the cc+ on the cash card acct or young persons flex.

It will be the same at any bank you go to, unless you get a basic bank account which will give you an all auth card.

bylromarha

deady wrote: »

You don't have to have an overdraft to go overdrawn. It's an unauthorised overdraft, which is why you get big charges - because you're not meant to go overdrawn.
Debit cards to let you pay for things if you have no money in your account, except if you have an Electron card or a Nationwide cash card+/all auth card, so as you have a FlexAccount you won't have either of these because a) NW don't offer Electron b) you can only get the cc+ on the cash card acct or young persons flex.

It will be the same at any bank you go to, unless you get a basic bank account which will give you an all auth card.

I agree accounts are not supposed to be overdrawn, but like I said before, the payment gets blocked on other accounts if there is no money to pay for them. Nationwide dressing this up as a feature - a £100 "reserve" amount - is hype. I didn't ask for it, they used to block it if I couldn't pay. The most frustration is that if I had done 1 £99 transaction I would have got 1 £15 fee. I did 4 small transactions totalling £20, so I get £60 fees.

If I'd had a letter which said something like if you go into the red a little bit, up to £100, we won't block the payment anymore, we've given you an overdraft of £100, but will charge you £15 every time you use it, Please contact us immediately if you do not want this facility, or, even better, contact us if you want this facility, that would have registered far more than talk of reserves, which obviously didn't.

deady

bylromarha wrote: »

I agree accounts are not supposed to be overdrawn, but like I said before, the payment gets blocked on other accounts if there is no money to pay for them. Nationwide dressing this up as a feature - a £100 "reserve" amount - is hype. I didn't ask for it, they used to block it if I couldn't pay. The most frustration is that if I had done 1 £99 transaction I would have got 1 £15 fee. I did 4 small transactions totalling £20, so I get £60 fees.

I didn't mean that accounts in general shouldn't go overdrawn, I meant that accounts without an arranged overdraft shouldn't go overdrawn... because, well, it's not arranged. Every bank will charge you a lot if you use their money to buy something. Like I said in my last post, if your account specifically has no overdraft whatsoever (like a basic account, eg co-op cashminder) you won't be able to go overdrawn because of the card itself. However, if you have a normal everyday current account, like the FlexAccount, you will be able to go overdrawn. And I don't think they are covering anything up at all, personal reserves usually charge fees.

dunstonh

A debit card should remain just that - if you are trying to debit something via card you don't have funds to debit, you shouldn't be able to debit!

What about cheques and other transactions that have to go through the clearing cycle? What about debit card transactions that take longer than the earmark to come off the account?

At what point in history did it become the responsibility of the bank to control your spending? It has always been the responsibility of the account holder.

I expect any transactions which there is no money in the account for to be declined.

Well thats just a silly approach to take and one that is always going to end up in charges at some point.

My abbey account definitely declines anything if it means it goes overdrawn, as did my barclays account when I last used it in 2009.

No they dont. Not unless you can explain how a transaction under floor limit could possibly check against your balance or that those banks have found a way around transactions in the pipeline that are not earmarked.

missile

You are going to find the similar charges levied by any bank. Nationwide charges are very reasonable when compared to some other banks.

Began using it this month as a secondary account for my business transactions.

Flexaccount is not a business account.

The only way I can get rid of this reserve is via online banking - I don't have it.

Why not? You obviously have access to the internet. You can write to Nationwide or visit a branch if you wish to have your overdraft facility removed

tazdevil01985

Sorry is it me being stupid ? but you used your card knowing that there was no money in it and now complaining you have been charged I cant see the problem ?

Mulligan1

deady wrote: »

You don't have to have an overdraft to go overdrawn. It's an unauthorised overdraft, which is why you get big charges - because you're not meant to go overdrawn.
Debit cards to let you pay for things if you have no money in your account, except if you have an Electron card or a Nationwide cash card+/all auth card, so as you have a FlexAccount you won't have either of these because a) NW don't offer Electron b) you can only get the cc+ on the cash card acct or young persons flex.

It will be the same at any bank you go to, unless you get a basic bank account which will give you an all auth card.

Cash Card+ is indeed available to customers with a FlexAccount, generally to those who previously only had a Cash Card or new customers who do not meet the criteria for the blue Debit Card.

blueberrypie

bylromarha wrote: »

I know there will be responses to this thread reminding me it's all my own fault for not being at the cashpoint every minute of every day, but I didn't give anyone any authority for me to borrow their money.

Yes, you did - when you attempted to pay for something with your debit card, without having adequate funds in your account to cover the payment.

As others have pointed out, this is standard practice. It will have been in the account's terms and conditions.