Help with disproportionate overdraft charge

ses6jwg

If its the first time its happened if you call and explain dont get aggressive, they will likely refund it.

As long as you have the correct type of account, any Santander branch can type your account number in and see what overdraft you can have based on internal credit scoring.

The Reward Bank account has a £100 interest free overdraft.

The PICR is charged at 19.9% APR.

PODR and Zero are 12.9% APR.

ju_1980

Hello all,

thank you so much for your advice, I shal indeed call Satander up and see what they can do.

Can I just say to the people saying why is it ridiculous if it's in the terms and conditions? Well, just because it's in the t&c's doesn't mean it can't be ridiculous.

If the banks wanted, they could have a system in place where you're only charged an unarranged overdraft fee if you're overdrawn over £1 (just a small amount as an example, could be more), so anything below £1 doesn't get charged automatically. That would be fair and reasonable and common sense. But they don't do it, because they probably make loads of money from these charges. I don't buy that whole "the charge is related to the administration cost in your account being overdrawn", seriously? Everything is computerised and automated these days, especially with banks.

It's daylight robbery if you ask me, but still I can't survive without an account, so I need them more than they need me, so I will graciously and humbly phone satander and ask them to waver the fee.

Thank you all.

opinions4u

ju_1980 wrote: »

Can I just say to the people saying why is it ridiculous if it's in the terms and conditions? Well, just because it's in the t&c's doesn't mean it can't be ridiculous.

I think it's harsh. But you did cross a line and all they've done is apply the charges in accordance with the T&Cs.

If the banks wanted, they could have a system in place where you're only charged an unarranged overdraft fee if you're overdrawn over £1 (just a small amount as an example, could be more), so anything below £1 doesn't get charged automatically.

Some banks do. Halifax have a £10 "buffer".

That would be fair and reasonable and common sense. But they don't do it, because they probably make loads of money from these charges.

They do make money from bank charges. But they also provide a free service to the majority of customers who are in credit. Free use of branch. Free debit card. Free cheque book. Free statements. Free us of ATMs. Free deposits. Free withdrawals. Free standing orders. Free direct debits. Free online banking.

I don't buy that whole "the charge is related to the administration cost in your account being overdrawn", seriously? Everything is computerised and automated these days, especially with banks.

One lot of charges cross-subsidises the freebies.

It's daylight robbery if you ask me

Who took money from somebody else without a written agreement to do so? I think that was you, not the bank.

Play them at their own game. Take the free stuff and make sure you don't end up paying any charges for oversepnding.

Good luck with the phone call.

Nothanks

I'd be surprised if you didn't get the charge waived, if it's a one off, but the problem with your suggestion to have a "buffer zone" is that there will ALWAYS be some people who exceed it by 1p and pitch a fit about being robbed, no matter what the banks put in place.

Not suggesting you're pitching a fit btw OP, just speculating there are those who do.