Santander - Overdraft charges on statement when not overdrawn

wizzards

After about an hour of santander phone music and after dealing firmly with some sales chap trying to sell me a zero account before putting me through to the right department I have got my un-arranged overdraft interest refunded for the overdraft I never had. No explanation as to why it ever appeared in the first place.

The person who actually sorted it was very nice an helpful and efficient but why Oh why can't they train all their staff like that.:(

So I all in all I have achieved a result. Whether I should have gone for some compensation I wonder. If it takes a couple of phone calls and a few hours of music to get a simple problem sorted I wonder whats its like to do anything complex by phone. Heaven help anyone who switches banks and it goes wrong !!

I thought of switching banks but then will I be connected to a santander phone line trying to sort out a switching mess. Maybe a DIY switch where I manage it myself is a better bet.

byebyedebt

ERICS_MUM wrote: »

I can't think that any bank would do this (deliberately), as these "overdrafts" are not costing them (banks*) anything. I worked for a major bank for 35 years and was involved in calculating interest for personal, corporate and major banks, in sterling and other currencies and we never charged for intra-day.

As I said in my earlier post, I suspect Santander have set up their accounting/interest system incorrectly, possibly to base the interest on the day's lowest balance rather than the "end of day" balance.

* on the other hand, it may be that Santander are so strapped for liquidity to process their CHAPs payments that they themselves are actually are being charged intra-day interest which they are passing on to their customers. If this is what they are doing, it's completely unacceptable.

NB: these are my suspicions only, based on my banking experience. I have no insider knowledge (if only! kerching £££££££)

That is exactly what they do. I have claimed many a payment back because of it.

saira172

This has happened to me twice on separate accounts - one the basic account with no overdraft facility and once on my current account when they tried to charge unauthorised interest when I was barely overdrawn.

Both times I rang out of principle and spent far more on phone calls that on the "fees". Both times they apologised, blamed a "glitch" in the system and credited my account with money that they would then take out again two weeks later!

Did strike me that if people didn't notice that's an awful lot of money being quietly siphoned off!

wizzards wrote: »

Having banked with Abbey before it became with Santander I have experienced the ups and downs of its customer service.

This month I have a statement where I have interest charges shown on the front of the statement for the 1st January 2011 to be debited on the 25th January 2011. It is quite clear to me that at NO time in the last two months have I been overdrawn.

ashteadgirl

Second time in three months that have been charged arranged overdraft interest when have been no where near overdrawn. Am wondering what the real scale of this problem is. Spoke to santander and say that are not aware of the problem and are going to escalate my complaint ( not very hopeful of that happening!). last time took 4 phone calls to get the charge refunded so am prepared for a tussle. May only be 12p charge this month but as previous poster says how many people is this happening to - a very good money earner for Santander if it goes unnoticed or unchallenged.
One remembers the saying look after the pennies and the pounds will look after themselves
Look forward to hearing from folks

CH27

Can I ask why those of you who have or had this problem are still with Santander?

ashteadgirl

Moving current account is fraught with problems when have fair few BGC paid regularly into account. Also are any of the others going to be significantly better over a prolonged period. Perhaps my nom de plume should be doubting Thomas or very dubious!

flexrider

ashteadgirl wrote: »

Moving current account is fraught with problems when have fair few BGC paid regularly into account. Also are any of the others going to be significantly better over a prolonged period. Perhaps my nom de plume should be doubting Thomas or very dubious!

Same things been happening to me since start of accounts(3 years ago) just word of advice If you have the overdraft aer account (Current account) Like i do cut the card up and dont even bother open a basic account with them (Like ive done) and That why you have ore proof when this happens to you you have the following

1. money coming into account and nothing leaving
2. overdraft not used at all or any money left account apart from into(Yes another santander account which is no charge)

As for going to the branch i have had agents say to me they do this or that or leave notes and go into branch yet they never do(Used to refund me again for bad services) remember watchdog show other few months ago its in santanders policy to fix it or refund you. Their core ethics

Will be switching when know another competitor is worth it problem with banks is that their all the same a 'Business' that makes money from you. one way or another. Who wants to go to branch when they wont even let you take 10 quid out of your own bank aco!!!! it has to be 30 quid....terrible

andyjmccann

I have the same problem now with cahoot. I am never overdrawn or even close so their intra day explanation doesnt add up. No one can tell me the exact transactions that caused this so I dont believe the explanation.

Also, they pre warned of a small amount (10p) and ten charged 27p so this is a systems problem.

These are small amounts but it doesnt exactly make you think their systems are good. The only way to avoid them charging you is to keep your account thousands in credit...I didnt think overdrafts worked that way!

Cahoot in general has gone down the pan from a customer service point of view. I am moving, as much as that will be hassle. Its a shame cos for years they were great....:( Rant over.....

daveyjp

I have asked Santander for a copy of the balance sheet they use which shows when an account is overdrawn and interest charged i.e. a statement which shows when a debit card payment has been made, rather than when it goes through, which can be 2-3 days later.

They have admitted that using their online statements means you can appear to be in credit, but due to pending card payments you are actually overdrawn and incurring interest charges.

Lets see if they respond!

meer53

As far as i am aware, you don't incur debit interest until the transaction debits your account. If you take every transaction into account when you make it, the amount being shown as "pending" shouldn't make you overdrawn (unless you've spent money you don't have of course !) Not every bank has the facility to show pending transactions, it's your job, not the banks to take these into account.