Unlawful Overdraft Charges

acrasherkid

Hi GUYS

Thanks for all the help thus far I appreciate each and everyone of you!

My bank charged me £26 for being overdrawn on the 2nd April, as such this sent into a negative balance. This was positive before the charge was applied.

I was not paid untilt he 21st so was overdrawn for 18 days. They sent me a letter last week stating £85 will be taken on the 1st June.

I spoke to them this morning and they have amended this from £85 to £50 as a gesture of goodwill. My question is surely they cannot charge me a fee, then charge me another fee later as a direct result of them makign the accoutn go negative.
Please help as I am sure this is unlawful!!

Thanks!!

callum9999

acrasherkid wrote: »

Hi GUYS

Thanks for all the help thus far I appreciate each and everyone of you!

My bank charged me £26 for being overdrawn on the 2nd April, as such this sent into a negative balance. This was positive before the charge was applied.

I was not paid untilt he 21st so was overdrawn for 18 days. They sent me a letter last week stating £85 will be taken on the 1st June.

I spoke to them this morning and they have amended this from £85 to £50 as a gesture of goodwill. My question is surely they cannot charge me a fee, then charge me another fee later as a direct result of them makign the accoutn go negative.
Please help as I am sure this is unlawful!!

Thanks!!

I don't see why that would be unlawful. If you caused the fee to be issued then it's your responsibility to pay it.

Highly irritating yes (and maybe even unethical), but not illegal.

acrasherkid

True but apportioning the fee I was charged another fee. I was told when I was younger banks cannot charge you for a charge they have levied. I may be wrong but the original charge yes the charge for going overdrawn surely not?

Any other ideas/

Thanks regardless

zxspeccy

May not seem fair but certainly not "unlawful". The T&Cs of the account will normally cover the bank for unarranged overdrafts caused by it's charges.

It would appear that you have complained to the bank and they have agree to a partial refund as "a gesture of goodwill", meaning they do not believe the charges are "unlawful".

shop-to-drop

Did you not get notice that the fee charge was going to be applied? I wasn't immediately charged was it, that would be underhand?

acrasherkid

Yes by letter. In that case thanks for the confirmation it is appreciated I was under the impression in instances where a charge levied caused the account to go negative no further charge/s would be apportioned.

Thanks

bengal-stripe

acrasherkid wrote: »

My bank charged me £26 for being overdrawn on the 2nd April, as such this sent into a negative balance. This was positive before the charge was applied.

Your bank, in accordance with the Banking Code, will have given you at least two weeks notice, that they were going to deduct that sum on April 2nd. (Most likely on your previous monthly statement.)

Is it the bank's fault, if you failed to have sufficient funds available on the day the charge hits the account?

How will I know how much the bank will charge me?

Under the Banking Code, your bank will advise you of the amount of charges and interest to be debited to your account 14 days in advance. A full list of charges and interest rates will be displayed at your branch or you can ask your bank for a list of charges at any time.

http://www.bba.org.uk/customer/article/understanding-bank-charges-and-interest/borrowing/

acrasherkid

bengal-stripe wrote: »

Your bank, in accordance with the Banking Code, will have given you at least two weeks notice, that they were going to deduct that sum on April 2nd. (Most likely on your previous monthly statement-Internet banking)

Is it the bank's fault, if you failed to have sufficient funds available on the day the charge hits the account?

What bank do you work for? Seriously is there any need to be sarcy? Didn't think so.....the whole point of forums like this is to help oneanother not snipe

innovate

acrasherkid wrote: »

What bank do you work for? Seriously is there any need to be sarcy? Didn't think so.....the whole point of forums like this is to help oneanother not snipe

Nobody has been sarcy or unhelpful or sniped - - people have provided you with good factual information. Afraid, you have little hope to prove that anything unlawful has happened, and reality is you only have to blame yourself for thinking charges "would be apportioned". There is great advice in the previous post on how to confirm what your bank's charges are.

bengal-stripe

I don't work for any bank. - But to quote Oscar Wilde:

To lose one parent, Mr Worthing, may be regarded as a misfortune; to lose both looks like carelessness.

The Importance of Being Earnest, 1895

shop-to-drop

Put it down to an expensive lesson learned but make sure you do learn from it. It is really expensive to be disorganised with your finances so be as organised, disciplined and as informed as you can be. You have come to the right place though, have a good read through all the money management stuff here on mse and you will be fine.