First Direct unauthorised overdraft £25 fee

TheEffect

eBay took their sellers fees totalling £40 which I stupidly forgot was being taken from my account and as a result, took me £40 over my £250 overdraft. I didn't notice it until 2 days later and paid money in to take me back into my overdraft.

I received a letter today stating they're charging me £25.

£25 seems very steep for a £40 payment, all-be-it my fault. Is it possible to get out of this or am I going to have to lump it and learn from my mistakes?

Dr_Cuckoo3

The £25 fee may be the least of your problems :eek:

jjhamil wrote: »

Just wondering if anyone else has experienced this?

I've just found out that if you have a bounced direct debit from a First Direct current account - even if you pay it the same day - they sent that to the credit reference agencies as a late payment, which flags up as a '1 / Warning' on your credit record.

The customer services woman has just cheerfully told me they are the only bank that do it and that their regime is 'harsher' than other banks.

Other banks don't do it unless the payment is a month late but FD do it even if you pay the bounced payment within the hour! Astonishing and a total rip off.

It must have hit tens of thousands of people ...

I only found out as they have placed SIX 'Late Payments' on my credit file, even though I have never not made a payment.

I am very angry and want to warn others.

https://forums.moneysavingexpert.com/discussion/comment/30986609#Comment_30986609

https://forums.moneysavingexpert.com/discussion/3076726

TheEffect

Dr_Cuckoo3 wrote: »

The £25 fee may be the least of your problems :eek:

https://forums.moneysavingexpert.com/discussion/comment/30986609#Comment_30986609

https://forums.moneysavingexpert.com/discussion/3076726

That's a bit of a pain, but I guess it's my fault. Luckily I'm a student and don't plan on getting a mortgage for the forceable future.

Dr_Cuckoo3

actually you may be OK , status code 1 requires the following -

"Your overdraft balance has been greater than your overdraft limit for one to
two months."

"Cheques, direct debits and standing orders may have been bounced to keep
the account in order."

http://www.experian.co.uk/downloads/consumer/YCREJul08.pdf

since they didn't bounce the payment the unauthorised overdraft may not be reported

I remembered that First Direct report adverse data more keenly than other banks , but the other posts related to bounced items

meer53

TheEffect wrote: »

That's a bit of a pain, but I guess it's my fault. Luckily I'm a student and don't plan on getting a mortgage for the forceable future.

You sound quite a sensible student Bet you won't make that mistake again !

King_Weasel

TheEffect wrote: »

£25 seems very steep for a £40 payment, all-be-it my fault. Is it possible to get out of this or am I going to have to lump it and learn from my mistakes?

Clearly you have no grounds to challenge their action. But that needn't stop you asking them for mercy. If this is your only transgression you might be lucky. What have you got to lose?

opinions4u

Yup, apologetic phone call "Dead sorry, won't do it again, please waive the charge you lovely nice banky peeps".

TheEffect

Received this today after sending a sympathy message.

Re: Overdraft Arrangement Fee

Thank you for your message dated 14-Dec-2011.

The fee that you have queried has been automatically adjusted and will not show on your statement.

Please contact us if you require anything further.

Regards

Banking Enquiries

Gromitt

Nice one, TheEffect.

The banks are not that bad really if your nice and polite with them. I got £50 of charges (unauthorised overdraft + paid item fees) wiped off my Nationwide account after sending a grovelling e-message.

MattLFC

Gromitt wrote: »

The banks are not that bad really if your nice and polite with them. I got £50 of charges (unauthorised overdraft + paid item fees) wiped off my Nationwide account after sending a grovelling e-message.

Nationwide are not a bank.

But yes, generally if they see it is a genuine one-off mistake, and you have a good record with account management, banks have been known to waive charges on the odd occasion. I guess they treat the good customers with a bit of lee-way as they are the ones who the bank wants to keep.

meer53

Most banks will refund charges for a first offence as long as it's a genuine error. After that, you're on your own ! If it's a bank error they will always refund.