Bank allowing me to go overdrawn using my card & charging me???

Melly31

Hi folks, could really do with your help, I’ll try & give you the shortest version...........
Before Nov 2010 I could not use my debit card in shops etc if the bill was so much as 1p over my available overdraft (fair enough)
So in Nov I went to Iceland, I knew I had roughly £50 in the account & I had £50 cash on me, the bill was £56, I gave cashier my debit card whilst quietly explaining that if it was declined I’d give her £10 cash & try again (as I’ve done so many times before).
BUT the transaction went through, much to my delight.
However when I got home & checked my online banking I saw that the transaction had taken me over my £100 overdraft limit!
I immediately rang Alliance & Leicester & was told that Santander had taken over & the rules have changed allowing customers to go over their overdraft limits up to the value of their overdraft limit without being charged, I was obviously thrilled as I (kind of) had an extra £100 available.
I was then able to use my debit card in shops up to £100 past my overdraft limit.
However in December 2010 I incurred charges up to the value of £150 for these unauthorised transactions...call me thick but I thought they’d authorised them as that’s what they said on phone?
I again rang my bank, after much arguing I finally spoke to a very helpful Manager who listened into that call in Nov, he told me I was correct & he refunded all the charges & told me as that is what I had been offered that’s what I would get J
So I’ll be honest with you, I’m a single mother of 4 boys (after my fianc! past away in a car accident) & I was more than happy with this much needed £100 around Christmas time.
Then in Jan I get charged another £150, as much as it left me in financial hardship I didn’t have the time to argue with the bank as my mum was taken ill, so I didn’t really do anything about it to be honest, I just struggled on.
Now another £150 has come out of my account in charges & all of a sudden they’ve stopped me going over my overdraft, so I’m kind of £250 down, every penny of my benefits have been taken & half of next week’s!
The bank have stated that Santander does allow a certain amount of over expenditure which Alliance & Leicester did not, but they can’t tell me why this has stopped or tell me why it was allowed, esp to someone on benefits?
Also one of my friends & my brother has an account with Santander (formally Alliance & Leicester, same current account) & both were not able to use their debit cards in shops if they did not have the available funds (we’ve gone to the shop when they did not have available funds just to try it & see if they were allowed & no they’re not)? I’ve tried to tell the bank this but they won’t discuss other customers accounts (even with their permission when they are stood next to me, nor will they talk to my friend or brother at the same time as me to discuss it as they can’t discuss my affairs with them?)
Why did they allow me to go over my overdraft all of a sudden & now stop that from happening (when I asked them in Jan to stop allowing these transactions they said they could not) when thay do not allow that for other customers?
Sorry to ramble on, any advice would be greatly appreciated.

Nicky321

Not really got advice, but I went Overdrawn in Dec by just 50p and was slammed with charges of £35, rang A & L and spoke to someone who told me as a gesture of goodwill they would reverse the charges. Today I checked my online banking and again I see I have got £35 of charges due to go out in March due to my account going overdrawn by £2.32 due to a debit card transaction. I picked up the phone and explained again and they have immediately reversed the £35 charges again. It may be worth giving them a ring and explaining your circumstances, tell them that these charges are having a knock on effect month after month, maybe they will be able to help by reversing some if not all the charges.

Lokolo

Maybe you should understand the charges first? I don't know how Santander's charges work but they don't charge £150 for using your card once to take you over your authorised limit. They most probably charge something like £25 everytime you use your card.

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237870351769&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateT2

The below are reasons for a £150 charge.

[FONT=Verdana, Helvetica]4[/FONT]
[FONT=Verdana, Helvetica]A payment from your account takes you into an Unarranged Overdraft, and you make nine more payments from the account while you are overdrawn.[/FONT]
[FONT=Verdana, Helvetica]You are overdrawn for 10 days in a row during the month.[/FONT]

[FONT=Verdana, Helvetica]A payment from your account takes you into an Unarranged Overdraft. You are overdrawn for one day.[/FONT]
[FONT=Verdana, Helvetica]However, on three more occasions during the month, a payment takes you into an Unarranged Overdraft. On each of these occasions you are overdrawn for three days in a row.[/FONT]

[FONT=Verdana, Helvetica]A payment from your account takes you into an Unarranged Overdraft. You are overdrawn for 21 days in a row during the month and you make 12 more payments from the account while you are overdrawn.[/FONT]

[FONT=Verdana, Helvetica]
[/FONT]

Melly31

Nicky321 wrote: »

Not really got advice, but I went Overdrawn in Dec by just 50p and was slammed with charges of £35, rang A & L and spoke to someone who told me as a gesture of goodwill they would reverse the charges. Today I checked my online banking and again I see I have got £35 of charges due to go out in March due to my account going overdrawn by £2.32 due to a debit card transaction. I picked up the phone and explained again and they have immediately reversed the £35 charges again. It may be worth giving them a ring and explaining your circumstances, tell them that these charges are having a knock on effect month after month, maybe they will be able to help by reversing some if not all the charges.

Thanks for advice but just been on phone & its a big fat NO!
& They are still telling me that I have always been allowed to go over my overdraft limit depending on store limits, this is rubbish as this option is now not allowed in the same stores now for lesser amounts than were allowed last week???

Melly31

Lokolo wrote: »

Maybe you should understand the charges first? I don't know how Santander's charges work but they don't charge £150 for using your card once to take you over your authorised limit. They most probably charge something like £25 everytime you use your card.

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237870351769&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateT2

The below are reasons for a £150 charge.

I didn't state that these charges were for using my card once?

Nicky321

What about the This It is in effect a debt. There is some good advice on there, and maybe you could apply to the Financial Ombudsman?

Melly31

Nicky321 wrote: »

What about the This It is in effect a debt. There is some good advice on there, and maybe you could apply to the Financial Ombudsman?

Although this is a debt there are no debt collectors chasing me, just a bank taking money, they've already done this & left me with nothing, I don't really see how this is relevant?

Thanks anyway x

dunstonh

Bank allowing me to go overdrawn using my card & charging me???

Bank does not decide if you go overdrawn or not. You decide that by spending money you do or do not have. The bank is not aware of transactions that have yet to be processed and does not have a crystal ball. It is your responsibility to reconcile your own bank account. Many retailers have a floor limit on card transactions that do not check your balance.

You need to be in control of your money. No-one else. If you leave it like you have and play it very close to a nil balance then being charged is inevitable. Its just a matter of time.

Melly31

dunstonh wrote: »

Bank does not decide if you go overdrawn or not. You decide that by spending money you do or do not have. The bank is not aware of transactions that have yet to be processed and does not have a crystal ball. It is your responsibility to reconcile your own bank account. Many retailers have a floor limit on card transactions that do not check your balance.

You need to be in control of your money. No-one else. If you leave it like you have and play it very close to a nil balance then being charged is inevitable. Its just a matter of time.

I understand this BUT I was told that since Santander took over customers were allowed to go over their overdraft limit by the same amount as their limit; ie my agreed overdraft is £100 & they have let me go over by this amount?
So why has my bank never allowed this before Nov 2010? I've been with them for 3 years? These are the same shops (locally) that have denied my transactions before Nov 2010 if I ask for so much as 1p over my overdraft limit!
As for leaving it like it is so close to the nil balance, I've got 4 kids that need feeding & clothing & household bills to pay, how can I not leave it so close to a nil balance? (I weigh 7 stone as I can't afford to eat & I dress like a dosser so my kids can eat, wear decent clothes & we can be warm & have electric etc, I'm not extravagant!)
My whole argument is the change of rules/terms etc of my current account & my misguided information, I wasn't asking for 'I told you so' or 'It's your own fault' I was asking for advice & help, as you can't give any please don't say anything at all, you don't know me!

Nicky321

Melly31 wrote: »

Although this is a debt there are no debt collectors chasing me, just a bank taking money, they've already done this & left me with nothing, I don't really see how this is relevant?

Thanks anyway x

I haven't got debt collectors chasing me and found the info very useful, the link was to information on budgeting, trying to claim back bank charges etc.

dunstonh

I wasn't asking for 'I told you so' or 'It's your own fault' I was asking for advice & help, as you can't give any please don't say anything at all, you don't know me!

My advice is learn to run your banking correctly. I am not making any judgement on you as a person but its clear you were cutting it fine and not running your bank account correctly. If you don't want to hear things you don't like then do not post on a public forum.

My whole argument is the change of rules/terms etc of my current account & my misguided information

As you say, you were misguided. However, there is little point blaming anyone else for that.

understand this BUT I was told that since Santander took over customers were allowed to go over their overdraft limit by the same amount as their limit

Who told you that?

However, it doesnt really matter. A bank is not there to enforce your spending. With debit cards and cheques it cannot tell what is coming through the system unless that entry has been earmarked against funds. If the retailer card unit hasnt checked the transaction against the balance then it will allow it if you dont have the funds. In theory you can have £1 in your account and go to 10 shops spending say £10 and not one of them being rejected for not having enough money. You cant blame the bank for that.

If you meet the criteria for financial hardship you could ask the bank to waive the fees. If its your first error then you can ask them to waive the fees. If you cant use a debit card correctly then hand it back and stick to using cash.