Ripped off by Santander

GrayJ

I opened an Alliance & Leicester Premier Direct account back in 2005 when there was an incentive to do so (ML recommended this, so the following is entirely his fault.....:)).
I used it for about 3 years, and then ceased - though it remained open with about £10 in it. I checked it until the end of 2009 and then no more.
Last week I received a letter saying that I was £158 in arrears and that they were taking steps to recover.
According to Santander, who of course now own A&L, there was a small print in the original contract that there would be charges if the account was left inactive.
Now to a certain extent, the fault is mine for not checking the small print and for not checking. However, Santander have a reputation for disastrous customer service and semi-legitimate tricks like this have been known before.
I've challenged them, and they've offered to reduce the damage by £25, but does this ring any bells with any of you out there? Do you have any advice?
Thanks loads,
Graham

jambosans

I'm no fan of Santander, but if your account terms & conditions state there is an underfunding fee, then any oversight (despite no doubt numerous T&C update mailings from Santander) is solely your responsibility.

All you can do is appeal to their better nature, pleading guilt on your part and asking them to further reduce the charges as gesture of goodwill for your "simple" mistake. Highlight the account has not been in use, and that charges have been incurred on top of charges, which you feel is unfair. Make a formal written complaint, sent recorded delivery, and hope they're feeling compassionate. Link to formal complaints procedure below:-
http://www.santander.co.uk/csgs/ContentServer?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1210607166846&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateA2

jalexa

GrayJ wrote: »

Last week I received a letter saying that I was £158 in arrears..

What happened to the statements?

YorkshireBoy

jalexa wrote: »

What happened to the statements?

It's a Premier Direct account. Statements are not sent. Instead, you're sent an e-mail each month telling you to view your statement online, where you'll then see a section entitled "view charges due to be applied to your account".

ses6jwg

We regularly get this scenario in the branch that I work in.

If you opened it in branch, you may have some recourse if the adviser did not tell you about the underfunding fee at opening, which they should have (although some people try this and then we can look at the account and see whether it was opened online or on the phone, so don't be tempted )

The Premier and Premier Direct have always carried an underfunding charge this was made clear in the terms and conditions and was certainly very clear on the website just before they went off sale, though I don't know how clear it was historically.

You can certainly make a formal complaint to see if any further charges will be wiped off, but you as the underfunding fee is outlined in the terms and conditions you will probably find that Santander will reject your complaint and possibly offer you some redress and wipe some of the charges off.

Personally I am glad to see the back of the account as the £5 underfunding fee was a dreadful thing.

You would not have recieved any paper statements as it was an online account, in return for a lack of paper statements and the underfunding charge you probably received something ridiculous back in 2005 like 10% interest.

jalexa

GrayJ wrote: »

...Last week I received a letter saying that I was £158 in arrears and that they were taking steps to recover....

Given all the circumstances I don't have much sympathy, but.....

I am very surprised that Santander has gone to what I presume is a "default letter" in one letter, (notwithstanding that there *may* have been online statements). That is the "weak link" I would explore.

kai666

Whilst I sympathise, you have not been ripped off as it was in the terms and conditions however buried for you to read at your leisure.

IrishGypsy

ses6jwg wrote: »

Personally I am glad to see the back of the account as the £5 underfunding fee was a dreadful thing.

Except we haven't really, as the Preferred Account has a £2 underfunding fee (which will no doubt catch loads of people out if they simply leave the accoutn dormant and don't close it. Triggering off the unauthorised £5 per day (for 20 days). I forsee fun times ahead!

With regards to the OP, I doubt they'll reduce it much further, the branch would require manager discretion for more than the £25 offered, so Telephone banking - or more likely complaints - may lop a bit more off.

But I DO find it rather 'amusing' that you admit to making the mistake (knowing it was in the T&C's) and then start a thread entitled 'Ripped off by Santander'.

GooliesOfFire

Whaa.. I better close my Santander current account asap. It used to be A&L Premier Direct account back in 2006. My salary no longer goes into that account.

exel1966

After seeing the thread title and seeing the OP was a new poster I just knew that nobody would have been ripped off even before reading the whole post !

Surprise surprise, no rip off !

OnlyMe_08

do the underfunding fees only apply to Santander / A & L / B & B (premier?) current accounts?

Does inactivity on online savings accounts attract 'underfunding fees'?