Natwest Proactive Refund - why?

dano24

Guys, Natwest have sent me a letter this morning stating that they have identified that I am due a refund of a charge + calculated interest. Does anyone know why they are doing this? The main content I have typed below:

Dear Mr xxxxx

I am writing to let you know that we have recently identified that we have incorrectly applied unarranged overdraft fees and debit interest to your account.

Please accept my sincere apologies for this and for any inconveniece caused. I want to reassure you that we have taken all the necessary steps to prevent this reoccurring.

It's important that we correct this so I'm arranging for the amounts detailed below to be refunded to your account within 14 days of sending this letter.

Refund: £38
Interest (Gross): £5.37

The first amount, 'refund', is the total of all fees that were incorrectly deducted from your account plus any debit interest that has been charged, less any refunds you have already received.

The second amount, 'interest', is an additional payment we will pay you seperately for interest. This is to ensure you have not been disadvantaged financially and so you are returned to the position you would have been in had we not charged you.:T

Don't get me wrong, i'm over the moon considering that last week they gave me £330 for a complaint I had registered. But wow - it seems awfully proactive of them...

Any insights?

zxspeccy

Have you put in a Direct Debit Indemnity (unauthorised transaction) claim recently. The bank will refund the Direct Debit and refund any interest and charges associated with it.

If not then if may relate to your complaint as NatWest look at refunds (charges & interest) and compensation as two different things. The £330 could be purely the compensation payment, whilst these refunds could be related to the actual "out of pocket" costs you have suffered due to the complaint.

stclair

zxspeccy wrote: »

Have you put in a Direct Debit Indemnity (unauthorised transaction) claim recently. The bank will refund the Direct Debit and refund any interest and charges associated with it.

If not then if may relate to your complaint as NatWest look at refunds (charges & interest) and compensation as two different things. The £330 could be purely the compensation payment, whilst these refunds could be related to the actual "out of pocket" costs you have suffered due to the complaint.

The bank will only refund the charges if they made the error. The DDI scheme does not cover consequential loss.

I understand it relates to a system problem that happened yonks ago possibly nearly 2 years in fact lol

zxspeccy

stclair wrote: »

The bank will only refund the charges if they made the error. The DDI scheme does not cover consequential loss.

I understand it relates to a system problem that happened yonks ago possibly nearly 2 years in fact lol

The DDI may not but NatWest policy on "unauthorised transactions" does. So if this is an UT Direct Debit then NatWest will put the account back to a position it would have been if the Direct Debit had not have been claimed. Therefore an adjustment is done for interest and charges on the customers account.

I am not sure other bank have this same policy, but NatWest definitely do.

kyleb5991

i got same letter saying they are repayin 152 plus 14.98 interest dunno where its come from either

chambta

Charges applied to savings accounts I reckon. £38 being the unpaid charge at its highest.

stclair

zxspeccy wrote: »

The DDI may not but NatWest policy on "unauthorised transactions" does. So if this is an UT Direct Debit then NatWest will put the account back to a position it would have been if the Direct Debit had not have been claimed. Therefore an adjustment is done for interest and charges on the customers account.

I am not sure other bank have this same policy, but NatWest definitely do.

If the DD is cancelled or recalled on the day it debits the account then the information you have provided is correct. However if the account holder does not notice until a later date and charges have already been incurred then the bank would expect the company to refund any charges back to the customer directly.

JDC14

It's not savings, as I had the letter and have only held a current account.

The first paragraph tells you all you need to know.

Incorrectly applied overdraft fees

dano24

JDC14 - I get that, incorrectly applied fees, but I have never had fees before. My account has always been in credit and I have gone back over my statements since 2005 - no charges. Its a pleasant surprise anyway.

delibeth

Hi,
I have had the same letter and just wondered if anyone knows how long it takes for it to go into your account?

Thanks

polythenegirl

Could it be off the back of the recent problems? If you were affected and had fees applied because of it this could be the refunds that they were talking about?