Bank charges of £250 for a £9.34 overdraft!!!

beckymac24

I know its a long post but really need HELP!!

May 2011 I went £9.34 overdrawn, which I didnt think my account could do, I then occured £194.36 in bank charges over 2 months.
I went into my bank and they said I had to pay £250 to clear next months charge.
It was only when I saw a friend in the bank and had a chat about it and how I was angry that the bank was charging me for going £9.34 overdrawn the person behind the counter wanted to do something about it.
She found a clause in the charges, They give you a free unarranged overdraft of £10 (this is just as a thank you for banking with us, and you dont get stuck not being able to pay in a shop). I wasnt told about this at all and I do not what this service on my account.

She then proceeded to refund all the charges on my account, she said she would put a note on my account that my next months charge would be taken off.
I had a statement come and they had charged me £100,i just thought that my bank follow the so called notes she was suppose to put on my account, I then received a statement in July and I had been charged again £100 so my account is back to square on being £200 overdrawn.
I received a letter today stating that my account will be charged a further £100, taking the total to £300, on the 30th August.

I just woundered what I could do and if anyone could help. I have a meeting with the bank on friday 19th August and just want to know how to handle the situation.

jambosans

Make a formal complaint - send a letter, in writing, to your bank's complaints department, details will be available on your bank's website.

reclusive46

If I were you I'd just pay it otherwise you'll end up with them marking a default on your account. Then making a complaint to try and get your money back.

jalexa

beckymac24 wrote: »

May 2011 I went £9.34 overdrawn, which I didnt think my account could do, I then occured £194.36 in bank charges over 2 months.
I went into my bank and they said I had to pay £250 to clear next months charge.

Which Bank and what type of account?

YorkshireBoy

jalexa wrote: »

Which Bank and what type of account?

Looks like Santander is the bank, being as they've posted this issue on a Santander thread recently...

https://forums.moneysavingexpert.com/discussion/3406761=

beckymac24

Its just a current account with... you guessed it Santander.

jalexa

beckymac24 wrote: »

May 2011 I went £9.34 overdrawn, which I didnt think my account could do,

This is not being judgemental or a trick question but in order to find if there is a wedge to drive. Why? Did you think it was "impossible" or only that you knew there wasn't an arranged overdraft?

In exactly the same vein, what statement arrangements did you have?

One thing you need to do is to look out the account Terms and Conditions and the Charges leaflet. Then look carefully for *any* bank non-compliances. Don't believe that computers never make mistakes.

IrishGypsy

You may be able to get the lot wiped as it was under £10 OD in the first statement period (when you first went OD), but this is faaaaar from a guarantee. But it also sounds like you've racked up 20 days of daily fees for being in an unauthorised OD. Which - at only £9.34 - implies that you're either spending ALL your money as soon as you get it at the start of the month, or... you're not funding the account at all/properly. Neither of which is good. Most people would find a way to get £10 into their account (one way or the other) to avoid a £5 a day charge (otherwise you don't check your account balance very often).

beckymac24

I have had this bank account since I was 16 for when I went to college. There was a £50 overdraft on the account, which in fairness I used a couple of times, but I lost my job a couple of years ago and went into the bank and got them to take any overdraft facilitites off my account. I stated to them, that by no means was my account to be allowed to go overdrawn, she said that was what she had done. Up and till this £9.36 charge occured, my account has never been allowed to go over drawn.

I have had these charges removed once before, but she said that she would put a note on my account to clear the next months charged as it hadnt been put on my account at the time, but she knew it would.

In my view this is a fault on the cashiers behalf as she has followed through with what she said she would do.

jalexa

beckymac24 wrote: »

... Up and till this £9.36 charge occured, my account has never been allowed to go over drawn....

Do you mean *you* never allowed it to go overdrawn or Santander (or predecessor Bank) prevented it at the expense of a "unpaid item" fee?

I'll start with a positive approach to your banking. It really looks as if you might benefit from an account which *you* can't overdraw on (though its not totally proof against "unpaid item" fees). In spite of todays coverage of Natwest/RBS basic accounts, perhasp that is something you should consider. There is no need to inform Santander, just apply online for a Natwest or RBS basic bank account. When/if up and running manually transfer all your arrangements.

Regarding Santander, if you do not feel you are making progess you need to formally complain strictly in accordance with the Santander complaints procedure fimrly restating the occasions you claim you received assurances that being overdrawn would be blocked.

In practice, and this is not to excuse Santander, the bank has migrated different banks and different accounts. Apart from confusion, and most reports of Santander customer service indicates exactly that, well worse actually, an account migration and update process usually involves sending out notice of changes to Terms and Conditions, which are deemed accepted (by you) if you do not respond. That is a correct legal process, almost certainly something which has happened, and makes fighting this "tricky".

I don't think you can avoid setting down your side in a complaint. You need to make sure your complaint focuses on the assurances you say you received because there are not strong grounds for charges in isolation to be refunded.

And again, its not a trick question, but helps advice on "tactics", did you say what statement arrangements were in place? Apologies if I have missed that.

IrishGypsy

beckymac24 wrote: »

I stated to them, that by no means was my account to be allowed to go overdrawn, she said that was what she had done. Up and till this £9.36 charge occured, my account has never been allowed to go over drawn.

This is impossible to do as any debit card/bill payment/standing order/direct debit can take any Santander bank account into an unauthorised overdraft. Unfortunately.

If you believe that the employee has confirmed that she would ensure you can't ever go OD, you can try fighting it on incorrect info provided by that member of staff, but I wouldn't bank on them wiping them all. But obviously for your sake, I hope they do. Best of luck.