May I ask if I have a case against NatWest?

ajmaj

Dear All,

Still new to the forum, so I apologise in advance if I have posted in the wrong place or breached any other forum etiquette or rules.

Basically, in March 2009 NatWest suddenly changed my overdraft from £2000 to £1800 without giving me any written or verbal warning whatsoever. As a direct result over the next few months I must have incurred about £600 worth of fees and charges and interest.

Essentially what I need to know is if banks are legally obliged to give you notice before they amend your overdraft, or not.

Any advice would be much appreciated.

Many thanks

Ajmaj

dunstonh

Essentially what I need to know is if banks are legally obliged to give you notice before they amend your overdraft, or not.

Overdrafts can be called in at any time. Also, most are set to renew and they can change the limits on renewal.

vics199

Hi, I'm new to this board too (trying to desperately sort out my finances!) and think I may be able to help having just claimed back charges from Nat West myself.

Firstly, banks do have to let you know in writing about any changes they are making to your overdraft and tell you the date that this is happening (I know this because another bank reduced mine previously and sent me a letter telling me, I did nothing about it and got charged - I was told that because I was sent a letter I could not reclaim the charges).

Secondly, call NatWest customer services and speak to the complaints team. I spoke to them this week regarding them putting me on a repayment plan for my overdraft without asking me and wrecking my credit rating even more. To cut it short, as they didn't ask me and because I also didn't qualify in the first place, they have now cancelled it, are restoring my credit rating for me and gave me £30 compensation. Additional to this, as I was on the phone and thought I would push my luck, I asked for charges from last year for going over my overdraft to be refunded as I said I was in hardship for that time period (which is true) and said the charges were unfair and I have now been refunded the full £170 of charges.

So what I am saying is that the complaints team will take action there and then based on what has happened. As you weren't notified (like myself in a slightly different case) about a change in your overdraft, then you stand a very good chance in getting the money back from them and it only takes 5 working days to process! Hope this helps.

dunstonh

vics, can you post on your own thread please. Copy and paste what you wrote to save time. each thread has its own subject and it isnt fair on ajmaj to try and take over his one.

magpiecottage

The bank is required to act fairly.

If it simply told you it was lowering the limit to less than the outstanding amount without warning and started charging you then it would probably find FOS uphled a complaint.

On the other hand, if you owed substantially less than the new limit, or it gave reasonable notice of the change then it is less likely.

So whilst a complaint about charges would probably fail, if it was that the limit was reduced in a way that was unfair it might succeed.

If it did succeed then the consequences of the unfair treatment (i.e. the charges) would need to be reversed.

holly_hobby

ajmaj wrote: »

Dear All,

Still new to the forum, so I apologise in advance if I have posted in the wrong place or breached any other forum etiquette or rules.

Basically, in March 2009 NatWest suddenly changed my overdraft from £2000 to £1800 without giving me any written or verbal warning whatsoever. As a direct result over the next few months I must have incurred about £600 worth of fees and charges and interest.

Essentially what I need to know is if banks are legally obliged to give you notice before they amend your overdraft, or not.

Any advice would be much appreciated.

Many thanks

Ajmaj

Whilst bank accounts are not, Overdraft facilities are regulated under s10 (with part v exemption) of the Consumer Credit Act 1974 (updated).

When you first effected your OD, you recived a letter of facility, which detailed your OD limit (at that time), and the terms under which it would/should be operated and may be recalled. Any subsequent personal changes to your OD arrangement (ie - increase or reduction to the limit), must be advised by the issue of a further Letter of Facility (changes to general interest rates/fees/unauthorised charges - do not have to be advised via a letter of facility, but nay be openly published in branch and via media sources).

As the letter of facility is essentially the contractual basis of your OD, it should clearly advise to the changes to be made and the date of implementation of such contractual changes, which to demonstrate fairness (esp re a reduction, that will need a healthy lump sum repayment to concur with the changes), should ideally give at least 4 weeks notice of change.

If it is a reduction to your OD, it should also detail actions/penalties that will result from any failure to bring your borrowings within the new limit, by the stated timeline - if they failed to comply with the above, its hard to see how any fees or penalties for exceeding an OD limit (as a direct result of their un-informed action) could be justified or lawfully enforced/pursued (indeed failure to comply with LOF etc, actually forfeits part v exemption re execution and judicial pursuance - but thats a dish for another day).

Hope this helps

Holly

PS - as a side thought, if you submit to the bank a SAR (statue access request), at a max cost of £10 and a 40 day turnround, then this result in they providing you withe a copy of all documents and record of activity on your account form inception to date of request or closure which ever is sooner. Under a SAR the bank are legally bound to provide you with copies of all issued docs, and any oral recordings held on file for the duration as noted above.

If the SAR supports your claim that the bank failed to issue a (revised) facility letter in respect of the amendment (reduction) to the OD limit (of which you were unaware until breach) - then that will support your requirement and case re reversal of charges, penalites etc ....

ajmaj

Thanks so much to everyone. This is all really useful and I shall be using it in my complaint. I shall also post here re the outcome.

Best.

Ajmaj.