Reclaim Overdraft arrangement fees?

edited 30 November -1 at 1:00AM in Reclaim Bank & Credit Card Charges
2 replies 1.8K views
irishdonkeysirishdonkeys Forumite
22 Posts
edited 30 November -1 at 1:00AM in Reclaim Bank & Credit Card Charges
Hi,
I have been inspired to claim back a lot of the charges we recieved over the years from several banks but in particular Lloyds TSB who have creamed it off us!

They set up an overdraft as we had a farm. My query is whether I can claim back the overdraft arrangement fees? It was a business account and although I can understand the original arrangement fee, I cannot understand why every month, sometimes, every couple of weeks, they would charge a random amount and call it an arrangement fee. This was when we were well under the limit and had not requested any increase at all.

The fees ranged from £100 to over several thousand at a time and no rhyme nor reason as to why they charged the various amounts. I tried asking the bank manager at the time and just got fobbed off, I seem to remember at the time him saying that it was normal but it didnt seem right to me.

Can anyone give any advice?
Thanks

Replies

  • antrobusantrobus Forumite
    17.4K Posts
    ✭✭✭✭✭
    The way these things normally work, is that you apply for an overdraft on your business account, the bank says yes, and so you pay:-

    - an arrangement fee for the overdraft, plus further fees as and when the facility is renewed. Usually once a year
    - interest on the overdraft you actually use
    - charges depending on when banking services you actually use

    These days banks normally pre-notify all charges, although as far as I can remember they always used to tell you what they were after they'd taken the money.

    What does it actually say on your bank statements regarding these charges? Have you formally written to Lloyds and asked them to explain?
  • Just taking an example from a statement I have here from 14th August 08, Arrangement Fee in capital letters on the statement of £1750, (we opened the account in november 2007) 5th March 08, Arrangment fee £100, 14th Dec 09 £750, 9th April 2012 £500, 8th Jun 2012 £300 etc etc

    I havent written to them as yet but hoped that I could send them a letter to claim it all back as other than the standard yearly arrangement fee I cannot see why it has been charged.

    The interest and all other fees were charged seperatly and we were always notified after the charges had hit the account.
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