So I'm closing my Nationwide flexaccount...

YorkshireBoy

You do not have an overdraft facility on the account. That's why you're incurring charges.

The charges are the same, whether you're successful in spending money you do not have or not, ie 'paid item' and 'unpaid item' charges are both £15. So the good news is that at least you got your goods! Had you not got them, and still been charged, you'd have been fuming!

Some reading (once you decide to stay with them since all bank accounts operate the same policy) for you...

http://www.nationwide.co.uk/current_account/charges.htm

And some more (with OFT input)...

http://www.nationwide.co.uk/current_account/oft.htm

bylromarha

Oh, how I love MSE.

I put a thread up, knowing I'd get flamed, in order to help people who may think a debit card is still a debit card, and not get stung like I have been.

I love the way lots of you agree with Nationwide that a £60 fee for a total of £20 transactions in my reserve, which I never asked for, never wanted, and cannot turn off without internet banking, is acceptable.

I hope this thread helped someone!

YorkshireBoy

bylromarha wrote: »

I love the way lots of you agree with Nationwide that a £60 fee for a total of £20 transactions in my reserve, which I never asked for, never wanted, and cannot turn off without internet banking, is acceptable.

I don't think anyone said it was acceptable did they? What they are saying is it was entirely avoidable on your part.

[STRIKE]I have a Nationwide account, with online access and no overdraft facility, and am not aware of any 'reserve' overdraft facility on it, let alone being able to turn it off through online banking. Maybe you misunderstood? Or were misled?[/STRIKE] Apologies. It's there...just that I've never needed to use it.

Mark_In_Hampshire

I know what you're getting at. I remember reading the Ts & Cs for an account in the past which more or less said the following:

"If you try and spend money you don't have, we will lend you the money and charge you exhorbitant fees for doing so"

In other words, and in effect, we will force you to take out a loan with sharkish charges.

Rather than

"If you try and spend money you don't have, we will decline the transaction"

Which clearly would make a lot more sense. Banks could do this, but we're in the penalty culture now. Much easier to make money out of people through penalties than doing something useful.

As others have said, Visa debit cards don't always authorise unless you hit the floor limit. A Visa Electron card is what you need, which is better to have (IMO - I resist upgrading) as it always authorises, and so a moment of potential embarrassment in a shop is a lot cheaper than some ludicrous fee.

missile

bylromarha wrote: »

Oh, how I love MSE.

I put a thread up, knowing I'd get flamed, in order to help people who may think a debit card is still a debit card, and not get stung like I have been.

I love the way lots of you agree with Nationwide that a £60 fee for a total of £20 transactions in my reserve, which I never asked for, never wanted, and cannot turn off without internet banking, is acceptable.

I hope this thread helped someone!

You have not been flamed. We simply do not agree with your opinion

If you have a Nationwide FlexAccount with an overdraft facility you can:

• view your Agreed Overdraft Limit online
• check and switch off your Reserve Limit
• request a new overdraft, and
• increase or decrease your Agreed Limit online.

It is your choice not to register for online banking.
I am sure most people understand that when they spend more money than is in their account they can expect bank charges.:wall:

YorkshireBoy

bylromarha wrote: »

...cannot turn off without internet banking

From your bank's website's help pages on overdraft/reserve limits...

If you're not an Internet Banker

You can call our call centre on 08457 30 20 10, available 24 hours a day seven days a week or apply at any one of our branches. To find your nearest branch please follow this link to our branch finder. It is important to get prior agreement to an overdraft, to avoid higher interest and charges.

http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1239

neilsedaka

bylromarha wrote: »

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

Unfortunately removing your reserve limit via online banking will not stop Nationwide honouring a payment and the subsequent charge being made.

p00hsticks

bylromarha wrote: »

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?

Not exactly - the point of a debit card is that the money will be debited from your account straight away.

What happens if you don't actually have enough money in your account to cover that really depends on they particular bank account you have (and on the actual transaction - not all are authorised straight away by the bank).

There aren't that many accounts out there that will decline the transaction rather than put the account into overdraft, and as you've unfortunately found out, the Flexaccount isn't one of them.

jamesd

There's no straight away about it. Like a credit card there can be a significant delay between a purchase and the money showing up. There's no requirement for most accounts for the money to be checked against either the balance or the balance plus unused overdraft facility plus preset amount of unauthorised overdraft they will let you have (not disclosed to you, but set up in their system).

For purchases it's better to use a credit card so you can see what you'll be paying. For cash a debit card is OK.

For more certain financial management it's also good to have regular bills, perhaps including that credit card, coming from a different account from the one you use for normal cash. Then you can put enough money into the bill account to cover the bills and not have that affected by your own cash transactions.

missile

Why do some find it so difficult to make a note of how much you have and keep a tally of how much they spend? If you cannot manage your finances without incurring charges, then perhaps a current account is not for you?

Withdraw cash from a deposit account, then you cannot possibly spend more than you have.