Overdraft out of control

Insular

Hello,

Around 12 months ago I had an overdraft on my current account limited to £500, and had been operating at that limit for some time, frequently going over the agreed limit and incurring charges. So my bank (Nationwide) removed the facility and asked me if it wasn't too much trouble, would I mind repaying the lot immediately. It was too much trouble, but fortunately my parents were able to lend me the money and the issue was resolved.

For the following 6 months if I had no money in my account, I could not draw on it, as you would expect. So I carried on doing what I was doing, drawing on my account and assuming that because I could take money out, there was money there, but I was wrong. In May 2012 I received a phone call saying that I had a £500 unauthorised overdraft and again, would I mind paying it back immediately. I hit the roof. (I should point out that I dont like to check my account balance regularly, or read my online statements as I find them depressing)

It turned out that this unauthorised overdraft had been hanging around for about 3 months, they had just started letting me take money I didn't have, and then charging me for it, and then charging me for that. Having checked the statements, I had only spent about half of the total and the rest was made up of charges. I asked them how it got so bad, why did they not notify me sooner? I said they could have notified me at £100, or £200 etc but no, they waited for me to be £500 overdrawn before notifying me. Their response was that sometimes they let a small unauthorised overdraft occur to allow for payments to go out. Which I can understand, but I fail to see how someone with an unauthorised overdraft of £250 can be allowed to withdraw a further unauthorised £200 from an ATM.

I feel this is irresponsible on their behalf and with all the charges being added on top every month it is getting out of hand. I set up an agreement to allow the overdraft to exist and reduce the limit by £70 per month, then suddenly more charges are taken out, the agreement is void, incurring more charges etc. I paid 4 months worth off and have only decreased the amount by £100.

I have switched current accounts so the account has no other outgoings to add to the problem. I have been ignoring their calls for the last 2 weeks because I am so fed up with the whole thing. I have had issues with their charges before and estimate to have paid around £2000 in the last 3 years.

So my point is, Do you think they have acted unfairly? Am I in a position to complain and maybe at least get the charges cleared? I have no problem paying back money I have spent, but as the majority is their charges for borrowing money I didnt ask for or didnt realise I was borrowing I think it's a bit unfair.


Thankyou for your time.

missile

Why is any of this Nationwide's fault?

1 time post, I suspect this may be a wind up?

Insular

Because I feel they have allowed me to get into a position that I can't get out of and are taking advantage of that. I have had the account for 8 years, they should have been aware of the countless times that I went overdrawn without authorisation. I find it odd that one day they don't let money go out if it's not there then the next day they do, and they sat and watched it go on for 3 months before taking action. I admit that I should check my balance regularly and that it is up to me to make sure I am operating within my budget, but I feel that they have a responsibility too, and that waiting for it too get to the stage that it did before acting was irresponsible.

missile

I would suggest you get a savings account e.g. Post Office and then you will not be able to spend money which you do not have.

Aeryn

Well insular, as you have learned it pays to check your balence. Also you have contradicted yourself, you stated you had an OD limited to 500, you then went onto say you have an unauthorised OD of 250! You also say you believed there was no money so therefore you expected there to be a stop to you taking money out. If the account has an overdraft facility, it is automatic that they let you withdraw funds, as you never specifically told them to take away the overdraft,also they automatically charge if you go overdrawn even if you do not have an overdraft. There is no such bank account where you can't get overdrawn anymore.

Best to get in touch with your local money project that helps with debts, or the local C.A.B will point you to one.